Garden State Shop To Add TIPS

  • 06 Jan 2002
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David Kotok, portfolio manager with Cumberland Advisors in Vineland, N.J., is looking at increasing the firm's Treasury Inflation Protection Security (TIPS) allocation by 10%, or an additional $25 million, within the next few months. Kotok says he will place more emphasis on buying 30-year TIPSs, based on the view that the Treasury's decision to suspend issuance of 30-year bonds will cause long TIPS to trade with a scarcity premium within a year or so. Kotok adds that all TIPSs will rally after Wednesday's 10-year auction but that the price appreciation should be greater on the long end than on the 10-year range TIPS with a premium reaching 30 to 40 basis points.

Kotok believes TIPSs will rally more than conventional Treasuries because the market is currently pricing CPI for the next 10 years at a 1.5% rate, a level Kotok believes to be too low and one that he estimates should more likely be 3-3.5%. He reasons that the market is wrong because a 1.5% CPI level will make the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditure Deflator, zero, a violation of long standing Fed policy. Cumberland has a $250 million bond portfolio with an asset allocation of 50%TIPS, 35% taxable munis, 5% short-term Treasuries, 5% mortgage-backed securities and 5% cash. Kotok would not disclose duration given the portfolio's heavy allocation in TIPS.

  • 06 Jan 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 162,498.05 705 8.03%
2 Citi 160,009.61 642 7.91%
3 Bank of America Merrill Lynch 131,789.43 523 6.52%
4 Barclays 127,011.96 491 6.28%
5 HSBC 105,841.39 530 5.23%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Bank of America Merrill Lynch 12,912.95 35 6.65%
2 BNP Paribas 12,334.48 61 6.35%
3 UniCredit 11,196.47 58 5.77%
4 Citi 9,580.75 37 4.93%
5 Deutsche Bank 8,953.95 35 4.61%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Morgan Stanley 5,454.13 25 10.54%
2 JPMorgan 4,866.13 28 9.40%
3 Goldman Sachs 4,280.20 20 8.27%
4 Citi 3,649.88 23 7.05%
5 UBS 3,602.23 16 6.96%