Bridgewater To Launch TIPS Portfolio

  • 15 Sep 2002
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Bridgewater Associates will launch a portfolio of Treasury Inflation-Protected Securities in the coming months for institutional investors, says Daniel Bernstein, director of research at $35 billion in assets Bridgewater. He says the time is right for TIPS because pension funds are focusing more on protecting assets as the equity markets continue to slide. "In the $150 billion TIPS market, treasuries are growing at about $20-25 billion a year, which means that there is a lot of growth in that asset class," said Bernstein.

Bernstein said TIPS are attractive to institutional investors, who are becoming more sensitive to macro-economic factors such as inflation as the equity market continue its slide. Additionally, he noted that there is nothing in a traditional pension plan that protects against inflation because fixed-income and equity will both perform poorly when inflation rises.

Bernstein added that although the CPI-U rose only 0.1% in July, the month-to-month movements of the index has little affect on the long-term price of TIPS. The firm hopes to garner about $500 million for the new fund in its first year, and already has received interest from several funds, which Bernstein declined to name.

  • 15 Sep 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 241,652.19 924 8.19%
2 JPMorgan 223,721.63 996 7.58%
3 Bank of America Merrill Lynch 216,064.78 722 7.32%
4 Barclays 184,894.55 671 6.27%
5 Goldman Sachs 158,954.58 518 5.39%

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Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 32,522.19 61 6.56%
2 BNP Paribas 32,284.10 130 6.51%
3 UniCredit 26,992.47 123 5.44%
4 SG Corporate & Investment Banking 26,569.73 97 5.36%
5 Credit Agricole CIB 23,807.36 111 4.80%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 Goldman Sachs 10,167.68 46 8.81%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%