Accor Volumes Jump On Speculation

Credit-default swap volumes in contracts referenced to French hotels group Accor jumped last week as market participants traded either side of its end-of-year results released on Wednesday.

  • 05 Mar 2004
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Credit-default swap volumes in contracts referenced to French hotels group Accor jumped last week as market participants traded either side of its end-of-year results released on Wednesday. Market makers were taken by surprise, however, as results were better than expected and spreads, pushed out by a flurry of protection buying early in the week, tightened again. Five-year protection on Accor had tightened to 103 basis points at press-time on Thursday, after starting the week at 110 basis points.

"A move of five basis points is fairly significant in a low volatility environment," says one trader at a French bank. The volumes were notable for a quiet week. Another trader estimated that some $50 million (notional) of trades were executed, which is about 35% more than normal.

Standard & Poor's rates Accor triple-B with a negative outlook. The short-term rating was reduced in June to A-3 from A-2 and analysts commented that it would take gradual improvement over the next year or two to upgrade the rating. The long-term rating was not downgraded. "We have no current plans to change the outlook," says London-based Standard & Poor's analyst Trevor Pritchard.

Five-Year Credit Protection On Accor

  • 05 Mar 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 117,398.62 338 11.04%
2 Bank of America Merrill Lynch 94,721.79 272 8.91%
3 JPMorgan 92,612.23 269 8.71%
4 Wells Fargo Securities 82,597.19 239 7.77%
5 Credit Suisse 69,442.99 183 6.53%