Franklin Templeton Eyes New U.S., Euro HY Issues

  • 30 Jun 2002
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Franklin Templeton Investments is seeking to add new euro-denominated high-yield issues and to pick up U.S. high-yield names in the secondary market. Atanas Christev, high-yield portfolio manager, who manages E33 million in mainly euro-denominated high-yield bonds, says he is considering adding the upcoming issue from C.P. Ships. The shipping company has strong positions in the Trans-Atlantic business, and, although shipping is a very cyclical sector, Christev is relatively comfortable with the credit. He says he likes to buy bonds with coupons in the 9% range. "When we get issues that begin to perform very well and yields tighten, we look for replacements," he says. Templeton uses the Merrill Lynch euro high-yield index as its benchmark, because it includes U.S. issuers as well as European ones.

Christev has been looking at service sector credits and sectors that are virtually non-existent in the euro market such as oil and gas-related credits and aviation-related names. Christev views these names as being able to benefit from outsourcing business. For example, he is considering Integrated Electrical Services' 9 3/8% of '09. The company installs wiring, electrical and IT networks. And quite a few aerospace companies are proving resilient post 9/11, says Christev. Accordingly, he is considering B.E. Aerospace's 8 7/8% of '11 and Sequa Corp., which does avionics. He would need to take a more thorough look at Sequa and B.E. Aerospace before investing, he says. He is also going to take a look at Universal Compression, a company that makes and rents out compression equipment for gas wells.

  • 30 Jun 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 101,974.94 404 8.29%
2 Citi 95,105.34 354 7.73%
3 Bank of America Merrill Lynch 82,200.55 309 6.68%
4 Barclays 81,531.75 289 6.63%
5 HSBC 65,681.57 320 5.34%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 8,921.11 17 10.11%
2 Deutsche Bank 5,429.08 13 6.15%
3 Commerzbank Group 5,145.35 21 5.83%
4 BNP Paribas 4,907.83 23 5.56%
5 UniCredit 3,906.86 15 4.43%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 2,328.59 11 11.59%
2 Morgan Stanley 1,958.99 12 9.75%
3 Bank of America Merrill Lynch 1,598.67 7 7.96%
4 JPMorgan 1,371.27 7 6.83%
5 UBS 1,229.93 7 6.12%