Search results for

Lending banks are dominating the European convertibles market, as the product becomes more closely aligned with credit relationships. Banks with active lending businesses such as SG, JP Morgan and Citigroup/SSSB are topping the league tables in 2002 as corporates reward those institutions that provide credit. At the same time, pure play investment banks such as Merrill Lynch and UBS Warburg are struggling to find business.

While bankers and investors working in the primary bond and equity markets are enjoying a quiet summer season, those in the leveraged loan market are preparing for a tidal wave of business. Around 15 debt facilities - worth a total of between Eu16bn and Eu17bn - supporting European leveraged buy-outs are due to hit the syndicated loan and mezzanine market in the first two weeks of September.

Over $2bn was traded in dollar this week from 115 deals. The most active borrower was Lloyds TSB, which closed 18 trades for a combined $199.09m. The largest individual deal was a 10 year $44.4m note completed via Citigroup/SSSB. Australia and New Zealand Banking Group did two trades. The borrower issued a $100m note that settles on September 20, 2004 and a four year $10m trade that pays interest quarterly.

The number of euro trades fell slightly on last week's level, but Germany kept overall volume relatively high. Landesbank Sachsen did the biggest trade - a Eu200m note that settles on December 12, 2004. Merrill Lynch placed a Eu163.09m trade for Kreditanstalt für Wiederaufbau. The note pays long first and last coupons of 15bp under Euribor and pays interest on a monthly basis, maturing in February 2011. Wüerttembergische Hypothekenbank also boosted volume with a Eu100m three year deal. The note carries an annual coupon of 3.75% and was led by Commerzbank. DaimlerChrysler UK Holding also closed for Eu100m. Lehman Brothers was active as the lead dealer on RWE's Eu50m note. The trade has short first and final coupons. Lehman Brothers was also the bookrunner on Spintab's two year Eu50m trade. The note pays a first coupon of 3bp over Euribor and a final coupon of 3bp over three month Euribor.

Yen trading rose substantially this week as $1.28bn was issued off 128 deals. Four autos tapped the currency this week. while Banque PSA Finance issued the largest trade - a ¥10bn one year note. Citigroup/SSSB was the bookrunner. UBS Warburg placed a ¥6bn two year trade for BMW US Capital. Volkswagen Investments also closed for ¥6bn, after its trade was increased by ¥1bn. The note pays an annual coupon of 0.9% and Deutsche was the bookrunner. American Honda Finance Corp was the other auto active in the yen sector. Its note pays interest semi-annually and has a five year tenor.

Local banks in the Middle East are continuing to soak up bank debt as the mandate to arrange the $120m facility for Commercial Bank of Qatar was awarded yesterday (Thursday). Arab Banking Corporation (ABC), National Bank of Abu Dhabi and Bank of Tokyo-Mitsubishi will jointly arrange the deal. The facility will be launched into syndication next week.

Compiled by Richard Favis RBC Capital Markets, Johannesburg

Institutional investors have lost faith in the global recovery, according to the results from Merrill Lynch's monthly fund manager survey published this week. The report will make uncomfortable reading for bankers placing their faith in a recovery in the near term, but the news from fund managers was not all negative.

Moody's Investors Service has raised its ratings for both Qatar and Bahrain, reflecting progress by both states in implementing reforms. The US rating agency has increased Qatar's long term foreign currency rating to A3 from Baa2, and at the same time has boosted Bahrain to Baa3 from Ba1.

Neale Goldston-Morris, formerly a head of strategy at Deutsche Bank, has joined Credit Suisse Asset Management to focus on equity strategy and asset allocation. He becomes a director and portfolio manager. Tanya Branwhite, who worked with Goldston-Morris on the quantitative side, follows in September. She is to head the CSAM quantitative team.

Koninklijke Ahold (Ahold) has overhauled the dealer panel on its EuroMTN programme. Deutsche Bank, Lehman Brothers and UBS Warburg have been axed and Barclays Capital, Banc of America, Commerzbank, Dresdner Kleinwort Wasserstein, Fortis Bank, Merrill Lynch, Rabobank and Royal Bank of Scotland have been added. There are now 15 named dealers on Ahold's panel and Andre Buitenhuis, treasurer, finance and fiscal affairs at the issuer, told EuroWeek: "This is the first time that we have changed our dealers.