| New derivative rules in effect on ISE |
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| A busy month on the Irish Stock Exchange ahead of the new derivative listing rules, which came into effect on July 1st. |
Davy Stockbrokers (Amy Leonard)
This was both a busy and an interesting period for investment funds with the announcement of the new derivative listing rules. The new derivative listing rules came into effect on July 1st, 2006. However, it had been possible for funds to receive a derogation in order to list under the new rules prior to this date. One such fund is Spencer House Capital Management Mercury Forex Fund Limited. This is the first fund which Davy has listed, under the new rules. With effect from 1 July, all funds investing in derivatives will be using these new rules.
During this period all new funds listed by Davy were Cayman domiciled However, only half of them were master/feeder structures, with the other half making direct investments. Of the funds listed, two were managed by 788 Asset Management, 788 China Fund and 788 Global Asset Allocation Fund Limited.
Domestically, many Irish umbrella funds added additional sub-funds and classes. Polar Capital Funds Plc, Lehman Brothers Alpha Fund Plc and Tremont Master Strategies Trust all added new sub-funds. The new Polar sub-fund, the Latin American Fund, will seek to preserve and achieve long-term capital growth.
On the debt side, both Barclays Bank Plc Credit Linked Note Programme and Morgan Stanley Asia Products issued further notes. Meanwhile, Anglo Irish Bank Corporation Plc built on their success with an update to their Euro Medium Term Note Programme. The Programme limit was increased from €10,000,000,000 to €20,000,000,000 and they incorporated the ‘New Global Note’ structure.
This completes a productive half-year for Davy and we look forward to another busy six months listing both funds and debt products.
Goodbody Stockbrokers (Ciara Bollard and Maeve Lynch)
The past month has been particularly busy for Goodbody Stockbrokers. Some noteworthy debt listings include Scarlet Funding No.1 Plc, a UK issuer of a Stg ?31,724,647 mortgage backed floating rate note due in 2042. In addition, Citigroup, EFG Telesis Finance S.A. and Morgan Stanley acted as joint arrangers and joint lead managers to Themeleion III Mortgage Finance Plc, which listed four tranches of mortgage backed floating rate notes due in 2043. AIB UK2 and AIB UK3, both limited partnerships, each issued a single tranche of fixed rate/floating rate non-voting non-cumulative perpetual preferred securities. The securities of both issues had the benefit of a subordinated guarantee of Allied Irish Banks p.l.c. Issues under the CLASSIC Asset Backed Medium Term Note Programme remained active with Alexandria Capital plc and Octagon Limited each listing a new series of notes. Finally, Dresdner Bank Aktiengesellschaft updated its ?4,000,000,000 Credit Linked Note Programme.
As always a variety of investment funds listed during the May/June period, however, the master-feeder structure remained the structure of choice. Tetragon Credit Income Fund listed in June, this fund invests substantially all of its capital in Tetragon Credit Income Master Fund Limited. A further master feeder fund to list was FrontPoint Greater China Offshore Fund Limited. Staying with offshore master feeder funds, Rochester Capital Fund Limited, a company incorporated with limited liability in Jersey listed Euro and US$ shares. Finally, Ireland remained popular as choice of domicile with the listing of Lazard Japan Foundation Fund, plc, additional shares in both Goldman Sachs Global Tactical Trading Plc and Vanguard Investment Series plc.
JP Morgan Bank (Ireland) PLC (Grace Mulvihill)
The JP Morgan listing department have been working steady this month with the following deals:
Kicking off as usual with the programmes we simply dealt with a few supplements, we had a BNP Base prospectus supplement, a JPM Chase and Co Supplement and a Renaissance Capital Supplement.
CDOs & CLOs included Blueorchard Loans for Development 2006-1 S.A.. European Enhanced Loan Fund S.A. issued 21 traunches of Notes arranged by Dresdner. Euro Epics I PLC issued 2 sets of notes arranged by Goldman Sachs. Merrill Lynch arranged MCG Commercial Loan Trust 2006-1 which issued 7 tranches. CELF Loan Partners II PLC was arranged by JP Morgan issued 12 tranches. Kingsland No.II listed on both the regulated and unregulated was arranged by JP Morgan with 8 tranches issued. The Royal Bank of Scotland arranged Leopard CLO B.V. issued 12 tranches.
The Goldman Sachs arranged German Postal Pensions Securitisation 2 issued 4 tranches, whilst Dorset Street arranged by KCB Bank issued 9.
CS issued the following series 2006 – 647, Equity Linked, GBP Share Basket Certs and Linked to Selcuk. We also passported several deals for CSI, Debt Issuance Programme for Variable Interest Rate Securities, Dow Jones Euro Stoxx 50 Index, Series CSI 195 and CSI Nikei 225 Index . The Signum Finance Cayman issued Series 2006-10, 11, 12, 13, 14 and 15, Signum Finance I issued Series 2005-4, 2—6-2, 2006-3, 2006-01 and 2006-10. Cheyne Ireland arranged by JP Morgan issued Series 12 and 13 as well as Series 14 and 15. We also had a Cheyne Cayman Series 1 upsize.
Series issued under existing Programmes included; Morgan Stanley Series 767, Premium Green Series 2006-2, 2006-3, 2006-4. Pisces II, Series 2005-02 and Cedo PLC Series 4. Modjeska Canyon issued 10 Series.
Barclays arranged 1 Series under Xelo V Kara B4-B6, 1 Series under each of the following Arlo, Arlo VI and Arlo IV. Barclays also arranged an Arlo Trust, Bear 1 2006.
Corsair Finance Ireland issued 3 Series of notes 61, 69 and 70. Corsair Cayman Islands No.1 issued series 13 and Corsair Cayman No.4 issued 2 Series numbers 3 and 4. Corsair Cayman No.1 issued Series 17.
The Banesto EMTN arranged by Banco Espanol de Credito S.A issued 16 Series of Final Terms. Banco Poplular issued 11 Final Terms under its €4 million ECP Programme.
Kinetic Partners (Killian Buckley)
Kinetic Partners continues to see fund managers adding securities to their fund portfolios. Prologue Capital manages Prologue Feeder Fund Ltd, which through a master-feeder structure invests in G7 fixed income securities, exchange traded futures, and other instruments and derivatives to create a portfolio of relative
value strategies, and to a lesser extent in furtherance of macro directional trading.
Managed by 3L Investment LLP, 3L Fund, through its master fund seeks to achieve absolute returns primarily through long and short investment in equity securities in European markets.
As evidenced above the master-feeder structure is proving as popular as ever. In terms of investment strategies, Kinetic Partners is seeing a diverse range of approaches from fund of hedge funds to emerging market debt and European equity.
In light of the introduction of new Irish Stock Exchange rules in the area of custody and counterparty and market risk, we are expecting the summer months to be particularly busy. Among other revisions, the new rules provide further clarity for funds using derivatives and the manner in which the investment exposure limits should be determined.
NCB Stockbrokers (Margot McDonagh)
The last month has once again seen a steady flow of listings on both the funds and debt side of the business.
CDOs and CLOs continue to dominate the debt side of the business with Citigroup Global Markets Inc. acting as initial purchaser to four out of the six listings that took place this month in this type of structure. Granite Ventures III, Ltd. listed six tranches of notes with both Ivy Lane CDO Ltd. & Ivy Lane CDO Corp. and Diversey Harbor ABS CDO, Ltd. & Diversey Harbor ABS CDO Inc. listing seven tranches of notes each. Liberty CLO, Ltd. also listed an additional tranche with the listing of its Class Q combination securities. Merrill Lynch & Co. listed six tranches of notes in Class V Funding II, Ltd. & Class V Funding II, Corp., whilst, Morgan Stanley, in its role as sole-book runner, listed eleven tranches of notes in Grosvenor Place CLO I B.V., a limited liability company incorporated in the Netherlands.
The Netherlands is also the domicile for the two recently listed mortgage-backed issuances, which are both managed by GMAC-RFC Securities Europe. E-MAC NL 2006-NHG I B.V. on which ABN AMRO were co-lead manager listed one tranche of notes, whilst, E-MAC NL 2006-II B.V. on which Credit Suisse were lead manager listed four tranches of notes.
Goldman Sachs & Co. was initial purchaser to GSC Capital Corp. Loan Funding 2005-1 & GSC Loan Funding 2005-1 Corp., which listed seven tranches of notes this month.
On the funds side Deutsche International Corporate Services Limited has listed two additional funds within its dbX range of funds, namely dbX – Emerging Markets Long/Short 1 Fund and dbX – Asian Long/Short Equity 1 Fund.
Horizon Global Advisers Umbrella Fund plc a new Irish umbrella fund listed Horizon Opportunistic Value Fund.
This month has also seen the listing of JQS Convertible Arbitrage Fund Limited.
Global Investment Fund listed a new sub-fund, US Core Equity Fund.
The last month has also seen a number of new series being issued in several of our listed investment funds.
McCann FitzGerald (Eibhlin Johnston)
During the period under review MFLS acted as listing agent to the usual volume of debt transactions. These included five CDO transactions, two student loan securitisations and one CMBS, being the latest offering by Credit Suisse under their Titan brand. EBS Building Society continued to be active and issued a further three series of notes under its medium term note, to which McCann FitzGerald act as Irish legal advisers as well as listing agent.
MFLS also acted as listing agent on two innovative transactions. Globe Pub Issuer plc is the issuer established to effect a whole business securitisation by the UK’s Globe Pub Company, the proceeds of which were used by Globe Pub Company to fund its purchase of the pub portfolio formerly held by Spirit. Atlantic & Western II Limited was the second issuer of “cat bonds” established on behalf of PXRE Reinsurance Ltd. The cat bonds are designed to pass on the risk of liabilities incurred as a result of catastrophes such as hurricanes, earthquakes and tornados from the insurance company (in this case, PXRE) to the market.
On the funds listing side, Resolution International Funds plc, a UCITS established in Ireland, launched a further two sub-funds and additional classes within existing listed sub-funds. Census Investments 26 plc, Abbey’s closed-ended Irish umbrella structure listed two further sub-funds. The period under review also saw the listing of the first Irish structured product for Lantern Structured Asset Management, the Irish management company established by UBS, which was approved by the Irish Financial Regulator in January of this year. HFR Fund of Funds Master Trust, HFR’s structured platform, launched a further sub-fund, HFRX Offshore Equal Weighted Tracker Fund.
Signet Convergence Fund plc, an open-ended Part XIII investment company launched and listed its three share classes, Euro, US Dollar and Sterling.
New series of shares continue to be listed on a monthly basis. We are also seeing a strong interest in the establishment and listing of classes in already listed funds.
RSM Robson Rhodes LLP (Lara Byrnes and Gina Fitzgerald)
We had a very busy month on the funds side. It began with the listing of Absolute Return Fund Limited a Cayman domiciled Fund with a UK based investment manager, Johnson Stewart Partners LLP. They listed the Investment $ A Shares.
Following this we listed three funds for the French investment manager BFT Gestion. They were the Alma Credit Arbitrage plc, Alma Equity Hedged plc and the Alma Global Macro plc. All three funds are domiciled in Ireland. They are qualifying investor funds with prime brokers and each fund listed two classes.
We were delighted to work again with WMG Advisors LLP a UK based investment manager. This is the third fund they have listed in the last nine months. WMG Blixen Fund Limited is domiciled in Bermuda.
CDO and CLO listings remain as popular as ever with RSM Robson Rhodes listing 13 new standalone deals in this period. A sample of the notable deals which listed in this period include:
GSC European CDO III S.A issued $380 million, secured primarily on senior secured loans, mezzanine obligations and high yield securities, was arranged by Lehman Brothers International (Europe).
Following on from the success of Tourmaline CDO I which was named as ‘CDO of the year’ last year, Tourmaline CDO II, a hybrid CDO structured by Morgan Stanley and Barclays Capital and managed by Blackrock Financial Management listed 5 tranches of Notes.
Sorin Real Estate CDO III, backed by Banc of Americas Securities and managed by Sorin Capital Management –the 2006 CMBS Innovator of the year- listed 6 tranches of Notes in this period. Banc of Americas Securities also acted as initial purchaser for Kent Funding II which listed 7 tranches of Notes totalling over $1.25 billion.
The Goldman Sachs arranged G Street Finance Ltd backed by a US$1.5bn static pool of high quality ABS comprising of residential and commercial mortgaged-backed securities and CDO securities also listed in this period. |
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