The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Unlucky timing turns out to be Core problem

Issuer: Core Investment Grade Bond TrustAmount: $2.025 billionLaunched: November 15 2002Bookrunners: Bank of America, JPMorgan

When Bank of America came up with the concept behind the Core Investment Grade Bond Trust several months ago, it probably seemed an excellent idea. The environment was after all one where many investors were hellbent on decreasing exposure to the largest and most volatile individual corporate names. So what could be better than an aggregate product that offered them lower transaction costs, a diverse pool of bonds with an average A3/A- rating and the promise of secondary market price-making support from the arranging banks?

Unlike similar aggregate bonds such as Morgan Stanley's Tracers and Lehman Brother's Trains, Core also offered issuers the chance to raise new money through a potentially large and liquid transaction. This was attractive, since many frequent issuers were seeing spreads widen and were loath to offer stand-alone bonds into a volatile market.

Unfortunately, by the time Core was launched last month it had failed to meet the expectations of either constituent. Bank of America and JPMorgan, which BofA brought in as joint bookrunner, had hoped to launch one jumbo $4 billion to $8 billion bond. But investor demand on that scale wasn't there and the A3/A- rated deal was launched at just $2.025

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree