E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 9/19/2012 in the Prospect News Structured Products Daily.

JPMorgan top bookrunner for week; issuance totals $668 million

By Sheri Kasprzak

New York, Sept. 19 - The top bookrunner for structured products, excluding exchange-traded notes, was JPMorgan during the week ended Friday. It was followed by Barclays and Bank of America Merrill Lynch.

JPMorgan acted as bookrunner for $500 million of offerings, representing 74.77% of the week's deals in 12 offerings. The week before, the investment bank brought $98 million in 18 offerings, representing a week-over-week boost of 407.6%.

Barclays sold $48 million in 14 offerings, representing just 7.13% of structured products offerings, excluding ETNs. The week before, the investment bank acted as bookrunner for $16 million total in eight offerings, representing a 206.98% change week over week.

Bank of America sold $44 million of issues, making up 6.57% of the total weekly issuance in three offerings. The week before, the bank sold just two offerings, making up $59 million, a drop of 25.91% week over week.

Issuance totals $801 million

The week featured $801 million of issuance in 122 deals, up 184.34% from the week before, which featured $282 million.

Excluding ETNs, $668 million of new issues hit the market in 103 deals, up 157.08% from the week before, which featured $260 million in 99 deals.

Smaller deals were the most common this week. Eight deals were $10 million or bigger, up from five deals the previous week. Three offerings were $20 million or larger, down from four the previous week, and only one offering was larger than $50 million, up from none the previous week.

Equity-linked structured products were the most popular, with $571 million of securities offered, making up 85.47% of the market, excluding ETNs. Eighty-two offerings were priced, compared with $218 million in 86 deals the week before, up 162.46% for the week.

Deutsche Bank prices second-largest deal of year so far

Meanwhile, the second-largest deal of the year priced this week. Deutsche Bank AG, London Branch priced $429.64 million of 0% knock-out notes due March 19, 2014 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the index level decreases by more than 20% during the life of the notes.

If a knock-out event does not occur, the payout at maturity will be par plus the index return, subject to a contingent minimum return of 7.6%.

If a knock-out event occurs, the payout will be par plus the index return, with full exposure to any losses.

JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.

The offering is a sharp contrast to the recent trend of smaller deals.

"The flexibility of structured notes allows for customization," said Deryk Rhodes, vice president at Incapital.

"Investors can express a particular market view. The size of deals is coming down, in part because of advances in technology and trading and risk models permit much smaller sizes."


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.