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 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%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 32,522.19 61 6.59%
2 BNP Paribas 32,284.10 130 6.54%
3 UniCredit 26,992.47 123 5.47%
4 SG Corporate & Investment Banking 26,569.73 97 5.38%
5 Credit Agricole CIB 23,807.36 111 4.82%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 10,167.68 46 8.82%
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%