Dealers Warn Investors Off

A researcher and a banker warned investors to stay away from high-yield bonds, with the researcher going so far as to criticize some of his firm's recent deals.

  • 11 Mar 2005
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A researcher and a banker warned investors to stay away from high-yield bonds, with the researcher going so far as to criticize some of his firm's recent deals.

David Newman, co-head of European credit research at Citigroup in London, questioned whether the whole high-yield world had gone insane by describing how leverage continues to increase and covenants continue to weaken on new issues. For example, he noted two-Citigroup-led sales, for Culligan and iesy, each have seen covenant protection for investors weaken.

Leland Hart, executive director in leveraged capital markets at Lehman Brothers in London, told bond investors to run and hide. Given that valuations between bank debt and high-yield bonds are on top of one another on an asset-swapped basis, he said it makes more sense to invest in the senior part of the capital structure, namely in bank debt or warrant-less mezzanine securities.

  • 11 Mar 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 258,439.97 1161 8.49%
2 Citi 234,461.54 980 7.70%
3 Bank of America Merrill Lynch 200,720.52 825 6.59%
4 Barclays 186,521.37 765 6.13%
5 Goldman Sachs 145,264.65 606 4.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 31,351.09 133 7.76%
2 Credit Agricole CIB 27,432.69 116 6.79%
3 JPMorgan 23,350.32 62 5.78%
4 Bank of America Merrill Lynch 22,852.01 62 5.65%
5 UniCredit 20,250.58 112 5.01%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 8,160.55 49 10.08%
2 Morgan Stanley 7,744.92 38 9.57%
3 Goldman Sachs 6,966.15 37 8.61%
4 Citi 5,856.44 44 7.24%
5 UBS 4,823.67 25 5.96%