Does sophistication bring benefits?

It is not unusual to hear DCM bankers on sterling deals talk about the sophisticated nature of the investor base. Issuers on roadshows also often say they feel they have the best dialogues with UK-based investors, who have often done their credit work before meetings and want to discuss details in more depth than the usual page turning of an investor presentation deck.

  • By Nigel Owen
  • 07 Sep 2017
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However, it is difficult to see how the sterling investor base has managed to turn this positive perception of them into a tangible benefit.

Until Bank of England governor Mark Carney announced the institution would buy corporate bonds as part of its quantitative easing programme in August 2016, the sterling market had been languishing in the shadows and had almost become a niche market. It competed with the likes of the Swiss franc and Australian dollar markets for non-domestic issuers’ attention.

For several years sterling pricing was too wide for issuers to consider issuing in the currency instead of dollars, or euros, or one of those other niche markets, unless they had a natural need for pounds.

But this week, one of those offshore issuers, Total, trusted the sophisticated nature of the sterling market to understand why it was taking a leap of faith with a new approach to marketing. It marketed its bond at the reoffer spread — no initial ranges, no refinement, just the number.

The positive response from those sterling investors, particularly when compared to euro investors' response when Vodafone tried to do similar in the summer, may finally see that mature approach pay dividends.

A mature response from a sophisticated investor base deserves treating to more of the same.

  • By Nigel Owen
  • 07 Sep 2017

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 313,852.39 1175 8.95%
2 JPMorgan 286,674.13 1305 8.17%
3 Bank of America Merrill Lynch 281,869.72 974 8.04%
4 Goldman Sachs 214,547.99 704 6.12%
5 Barclays 205,147.76 790 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 31,971.88 102 6.87%
2 HSBC 31,940.18 140 6.87%
3 Bank of America Merrill Lynch 29,065.55 82 6.25%
4 BNP Paribas 24,679.63 135 5.30%
5 SG Corporate & Investment Banking 22,195.55 122 4.77%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 14,960.44 66 7.87%
2 Morgan Stanley 13,992.90 72 7.37%
3 Citi 13,566.56 83 7.14%
4 UBS 13,028.25 52 6.86%
5 Goldman Sachs 11,994.74 65 6.31%