http://www.creditflux.com/ en-gb Fri, 12 Mar 2010 13:51:00 UTC 60 http://www.creditflux.com//2010-03-12/Play-financials-underperformance-through-options-says-bank-desk/ 2010-03-12 13:51:00 LyondellBasell has announced it plans to issue $3.25 billion of new first-priority secured bonds and bank loans to refinance existing debt (including its DIP loan and European securitisation facility), as well as complete a $2.8 billion equity rights offering. Evolution Securities notes investor interest around the name following the news.… http://www.creditflux.com//2010-03-12/LyondellBasell-plans-325-billion-new-issuance/ 2010-03-12 13:23:00 US waste management company EnviroSolutions Holdings filed for bankruptcy on Wednesday, according to various media reports. The privately owned company, which has total liabilities of $289 million, has secured $30 million of debtor-in-possession financing. The company’s term loans and revolver are not widely held but are present in a number… http://www.creditflux.com//2010-03-12/Waste-manager-secures-30-million-DIP/ 2010-03-12 11:43:00 Dow Jones reports that broker Mint has hired two professionals to set up a team focusing on structured credit and illiquid bonds. David Ezra joins from Evolution Securities while Bruno Choumon previously worked at Conduit Capital Markets. http://www.creditflux.com//2010-03-12/Mint-hires-for-structured-brokerage-reports-Dow-Jones/ 2010-03-12 11:32:00 Wells Fargo recommends buying triple A and double A tranches of middle market CLOs, arguing that these deals should outperform other CLOs in an environment of rising defaults. Although the secondary market for these deals is thin, mid-market triple As trade around 100 basis points wider than the 150-200bp currently… http://www.creditflux.com//2010-03-12/Buy-midmarket-CLOs-recommends-Wells-Fargo/ 2010-03-12 11:22:00 Demand for European CLOs is said to be picking up again after several weeks in which Greece’s sovereign woes had left investors sitting on the sidelines http://www.creditflux.com//2010-03-12/European-CLOs-see-rising-secondary-demand/ 2010-03-12 10:36:00 A former JP Morgan and Deutsche Bank structured credit specialist has joined a growing New York-based structured credit advisory firm http://www.creditflux.com//2010-03-12/Former-JP-Morgan-CDO-marketer-joins-advisory-firm/ 2010-03-12 10:13:00 Markit has released provisional lists of constituent changes for the upcoming rolls of iTraxx and CDX corporate credit indices. The main indices, Europe and IG, see little change. There are only two name-changes proposed for Europe, with auto name Compagnie Financiere Michelin (95/100bp) and consumer Imperial Tobacco (92/97bp) replacing Volvo… http://www.creditflux.com//2010-03-12/Dealers-agree-iTraxxCDX-provisional-changes/ 2010-03-12 09:56:00 Rumours of a new three-year issue from Greece were apparently behind the sovereign’s credit default swap widening more than 20bp today to 306bp http://www.creditflux.com//2010-03-11/Greece-heads-wider-on-new-issuance-rumours/ 2010-03-11 20:32:00 Fraser Sullivan and its underwriter Citigroup appear to have finalised negotiations with the lead triple A investor in the forthcoming Tempus CLO http://www.creditflux.com//2010-03-11/Eagerly-awaited-new-CLO-set-to-price-tomorrow/ 2010-03-11 17:40:00 In credit research today, Royal Bank of Canada maintains an outperform recommendation on Glencore International’s cash bonds. Strategists also highlight an attractive basis to credit default swaps (153/161bp, and spread pick-ups from switching from Xstrata in cash or CDS (122/128bp). RBC notes there is an issuer-redemption-at-par option from February 2011… http://www.creditflux.com//2010-03-11/RBC-highlights-Glencore-basis-playsspread-pickups/ 2010-03-11 13:00:00 A number of new bond issues have priced or have talk emerging, including Abbey, Pernod Ricard, Ceva Logistics, Stena. Other firms also look set to bring bonds to market shortly, including Bank of America, Barclays, Renault and Huntsman. Santander-owned Abbey is reportedly set to issue a 2013-dated €1 billion covered… http://www.creditflux.com//2010-03-11/Several-firms-bring-new-bonds-to-market-with-more-planned/ 2010-03-11 12:48:00 Remaining investors will shortly redeem all the capital managed by a long-short credit hedge fund http://www.creditflux.com//2010-03-11/Manager-set-to-wind-down-longshort-credit-hedge-fund/ 2010-03-11 10:44:00 Yesterday’s trading saw an outperformance of LCDX over HY http://www.creditflux.com//2010-03-11/LCDX-outperformance-holds-firm-in-face-of-cash-bwic/ 2010-03-11 10:22:00 Late last week a CDO holder decided to auction two 2007 mezzanine CLO bonds http://www.creditflux.com//2010-03-11/Investor-sells-mezzanine-CLOs/ 2010-03-11 09:38:00 Markit has released the provisional lists of names for new series of the SovX family of indices. Dealers have affirmed the 15 existing names for SovX Western Europe into series three, but introduce six new names to the Global Liquid Investment Grade index, while removing four. Australia, Brazil, France, Colombia,… http://www.creditflux.com//2010-03-11/Markit-releases-SovX-series-three-provisional-lists/ 2010-03-11 09:00:00 The date for an auction to settle Aiful credit default swaps has been set as Thursday 25 March, according to Creditex’s website. Initial bidding will take place from 9.45am JST, with initial results at 10.30. Final results will be published after 2pm JST. The Isda committee ruled in December that… http://www.creditflux.com//2010-03-10/Date-set-for-Aiful-CDS-auction/ 2010-03-10 16:55:00 All bonds apparently traded from this week’s big CDO-squared liquidation, structured credit traders say http://www.creditflux.com//2010-03-10/CLOs-trade-in-CDOsquared-liquidation/ 2010-03-10 16:39:00 http://www.creditflux.com//2010-03-10/Bank-hires-highyield-sales-specialists-from-broker/ 2010-03-10 14:17:00 Standard & Poor’s has upgraded a 2006 European CLO after it used money which would have gone to equity and the manager to bought back notes. The agency lifted ratings on the senior class A notes of Egret Funding CLO I by two notches to A+, as well as upgrading… http://www.creditflux.com//2010-03-10/SP-upgrades-CLO-after-mezz-buyback/ 2010-03-10 13:45:00 The rally in credit markets is continuing today, with strength in European sovereigns seeing the SovX Western Europe index dip below 70bp to 69.5bp http://www.creditflux.com//2010-03-10/Rally-back-on-despite-mixed-European-picture/ 2010-03-10 13:41:00 A recent JP Morgan poll of CDX IG index correlation traders has elicited diverging responses on where dealers should focus efforts to improve liquidity, say sources http://www.creditflux.com//2010-03-10/Tranche-traders-torn-between-perpetual-indexannual-roll/ 2010-03-10 12:47:00 The Wall Street Journal reports that some professional investors have recently started buying up retail corporate bonds that include a survivor’s option – an option for the holder to redeem the bond early. Such bonds, which are sometimes issued by large investment grade corporates targeting retail investors, typically trade at… http://www.creditflux.com//2010-03-10/Buyers-reapgrim-gain-from-survivor-option-bonds-reports-WSJ/ 2010-03-10 12:04:00 Markit has released a timetable for the forthcoming rolls of credit default swap indices later this month. iTraxx indices and CDX IG are due to roll on Monday 22 March, with CDX HY rolling a week later on 29 March. Dealer provisional lists for iTraxx indices and CDX IG will… http://www.creditflux.com//2010-03-10/Markit-releases-index-roll-timetableinitial-changes/ 2010-03-10 10:39:00 In a report published last week, JP Morgan notes that the three-to-five year curve on the North American CDX index is at least 20 basis points too steep based on historical trading patterns. Short-end curves have generally steepened amid the recent rally, but the bank believes that the steepening in… http://www.creditflux.com//2010-03-10/Short-end-CDX-curves-should-flatten-says-JP-Morgan/ 2010-03-10 10:35:00 Barclays Capital says that the current 7.4 basis point difference between actual and model-implied super senior spreads is a good point to put on a full capital structure trade. This involves selling protection on all the standard index tranches and buying protection on the index at the same time. At… http://www.creditflux.com//2010-03-10/Barcap-touts-full-cap-structure-trade-to-arb-super-senior-basis/ 2010-03-10 10:24:00 In a new report to be published today, Fitch calculates that the cumulative default rate in trups CDOs rose from 10.8% at the end of January to 11% at the end of last month. This was as a result of two new defaults, taking the total to date to 87… http://www.creditflux.com//2010-03-10/Trups-CDO-default-rate-ticks-up-to-11-calculates-Fitch/ 2010-03-10 09:49:00 A theme emerging from yesterday’s 2010 TSAM conference is that the regulatory push towards mandatory central clearing of credit default swaps looks likely to be slower than previously expected. Speakers noted that numerous negotiations are ongoing both in the US and Europe and much work remains to be done to… http://www.creditflux.com//2010-03-10/Regulators-clearing-push-faces-delay-say-conference-attendees/ 2010-03-10 09:01:00 Last Thursday a rare four name b-wic was sold comprising older vintage CBOs dating as far back as 1999 http://www.creditflux.com//2010-03-09/Rare-vintage-CBO-bwic-trades-well-traders-say/ 2010-03-09 16:44:00 Primary broker-dealers are selling inventory of mezzanine CLO paper at discounts as buyer interest has waned for the middle part of the capital structure http://www.creditflux.com//2010-03-09/Dealers-look-to-sell-their-mezzanine-CLO-inventory/ 2010-03-09 16:31:00 IntercontinentalExchange says that its North American credit derivative central counterparty, ICE Trust, has cleared $4.3 trillion in notional of credit default swaps in its first year of existence. The clearer, which began operations on 9 March last year, has cleared more than 55,000 transactions on 31 indices and 29 individual… http://www.creditflux.com//2010-03-09/ICE-says-it-has-cleared-43-trillion-of-US-CDS/ 2010-03-09 13:48:00 In a report published last week, JP Morgan calculates that the new single name LCDS contract, which is due to launch in April, should price 10-20% tighter than existing cancellable contracts. The new “bullet” loan-only credit default swaps differ from the existing products in that they are not cancelled when… http://www.creditflux.com//2010-03-09/Bullet-LCDS-should-trade-up-to-20-tighter-calculates-JP-Morgan/ 2010-03-09 11:41:00 UBS strategists yesterday suggested putting on a long European sovereign and short investment grade corporate trade yesterday. The bank recommended selling protection on SovX at 67.75bp and buying iTraxx main in the same size at 74bp. In a research note sent to clients, UBS said this slightly negative carry trade… http://www.creditflux.com//2010-03-09/UBS-recommends-regsqueeze-European-credit-trade/ 2010-03-09 11:29:00 The overall rally in credit markets continued strongly yesterday, with spreads tighter pretty much across the board http://www.creditflux.com//2010-03-09/High-yield-index-lags-as-credit-spreads-continue-to-tighten/ 2010-03-09 11:20:00 A number of large European companies from the eurozone periphery are looking to issue corporate bonds http://www.creditflux.com//2010-03-09/Tightening-spreads-tempt-eurozone-borrowers-to-the-primary-market/ 2010-03-09 10:50:00 The Financial Times and other sources report on new calls for regulation of sovereign credit default swaps. Mario Draghi, ECB board member and chairman of the G20 talking shop the Financial Stability Board, told a news conference yesterday that greater regulation of the market is likely, because sovereign CDS trading… http://www.creditflux.com//2010-03-09/Central-banker-predicts-regulation-of-sovereign-CDS/ 2010-03-09 10:03:00 Indiana-based gaming company Centaur filed for bankruptcy on Sunday, according to a company announcement. The chapter 11 filing in Delaware, where the privately owned company lists its debts as being more than $500 million, follows an October restructuring which resulted in two of its operating companies filing for bankruptcy. Centaur’s… http://www.creditflux.com//2010-03-09/Race-track-owner-files-for-bankruptcy/ 2010-03-09 09:21:00 Dubai credit default swaps have rallied to new recent tights today, after Dubai World called a meeting of creditors in London this week to discuss its debt plans. The group is looking to restructure around $22 billion. Dubai CDS is around 20bp tighter to 488bp on the news. The Financial… http://www.creditflux.com//2010-03-08/Dubai-Worlds-debt-plan-call-prompts-emirate-CDS-rally-/ 2010-03-08 13:52:00 Credit indices have continued to tighten today, with comments on Greece support by French president Nicolas Sarkozy over the weekend adding to the firmer tone http://www.creditflux.com//2010-03-08/Credit-strengthens-after-weekend-datacomments/ 2010-03-08 13:33:00 Scandinavian Airlines (SAS) is quoted half a point tighter in credit defaults swaps today, with a mid of 11.25 points upfront – although the bid/offer differential has widened. The company will use its 7 April annual general meeting to seek shareholder consent to issue convertible bonds that will refinance SEK2… http://www.creditflux.com//2010-03-08/SAS-seeking-consent-to-refinance-through-convertibles/ 2010-03-08 11:38:00 Aviva Investors announced today that it has appointed Jiten Joshi as head of knowledge services, leading a new Mumbai-based team of analysts to support the London-based credit team. Joshi reports to Mark Wauton, head of credit at Aviva’s London office. The Mumbai team will cover investment grade and high yield… http://www.creditflux.com//2010-03-08/Aviva-builds-credit-research-team-in-Mumbai/ 2010-03-08 10:37:00 UBS has hired former Morgan Stanley head of structured products Matt Zola, say well-placed market sources http://www.creditflux.com//2010-03-05/Bank-hires-global-structuring-head/ 2010-03-05 16:50:00 Senior bonds from a beaten up trups CDO have recently rocketed in value after it emerged that a US M&A deal could result in a large pay-out to the senior investors http://www.creditflux.com//2010-03-05/MA-windfall-sends-trups-CDO-price-soaring/ 2010-03-05 16:48:00 A US bank's head of distressed debt trading and sales has left the firm to join a private equity fund http://www.creditflux.com//2010-03-05/Bank-distressed-trading-head-joins-private-equity-firm/ 2010-03-05 16:30:00 New York-based manager Stone Tower Capital will auction 52 bonds of a liquidating CDO-squared transaction on Tuesday (9 March) http://www.creditflux.com//2010-03-05/Investors-brace-for-CDOsquared-liquidation/ 2010-03-05 15:39:00 A US CLO bid-wanted in competition list had two of three bonds trade yesterday (4 March) http://www.creditflux.com//2010-03-05/TripleCLO-bwic-trades-in-the-90s/ 2010-03-05 15:25:00 a New York-based manager will run the liquidation of the Pinnacle Point II CDO next week http://www.creditflux.com//2010-03-05/High-grade-ABS-transaction-set-to-sell-nearly-100-million-in-CDOs/ 2010-03-05 15:11:00 Credit markets are rallying again today amid signs of improving prospects for European sovereigns and the US economy http://www.creditflux.com//2010-03-05/Rally-picks-up-pace-on-improving-EuropeanUS-economics/ 2010-03-05 12:31:00 The European Commission is holding a meeting in Brussels today with regulators, rating agencies, banks and investors over the market practice of trading credit default swaps on sovereign debt, it has been variously reported. Some European officials are calling for the outright shorting of government debt risk through ‘naked’ CDS… http://www.creditflux.com//2010-03-05/Traders-wait-on-ECs-sovereign-CDS-meeting/ 2010-03-05 12:08:00 A London-based credit hedge fund has lost one of its most senior portfolio managers http://www.creditflux.com//2010-03-05/Structured-trader-leaves-credit-hedge-fund/ 2010-03-05 11:46:00