http://www.creditflux.com/ en-gb Copyright © 2009 Creditflux Tue, 09 Mar 2010 11:41:00 UTC 60 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 Bank of America Merrill Lynch structured credit specialist Andrew Bellis is rumoured to be leaving the bank to return to Credit Suisse http://www.creditflux.com//2010-03-05/CDO-structuring-specialist-returns-to-bank/ 2010-03-05 11:39:00 Babson capital recently scooped up a batch of unwanted CLOs, helping Jefferies Asset Management to exit the business http://www.creditflux.com//2010-03-05/Signs-of-CLO-consolidation-grow-as-manager-takes-on-five-deals/ 2010-03-05 10:27:00 On Tuesday (2 March) two secondary US CLO equity pieces traded at levels more commonly seen for triple B CLO bonds http://www.creditflux.com//2010-03-04/CLO-equity-outlier-trades-in-60s/ 2010-03-04 14:39:00 Some CLO managers have been much more aggressive than others in participating in loan amendments which increase the maturity of the loans, according to a recent research report by Barclays Capital. The bank calculated how often managers participated in amend-and-extend deals, and how often they passed up the opportunity to… http://www.creditflux.com//2010-03-04/Prudential-nods-through-least-amendandextends-say-Barcap/ 2010-03-04 12:04:00 Corporate credit markets in Europe have stayed flattish again today with the SovX Western Europe again outstripping iTraxx Europe http://www.creditflux.com//2010-03-04/Curvesofftheruns-active-as-roll-prepositioning-begins/ 2010-03-04 11:53:00 In their latest Credit Markets Daily commentary, Goldman Sachs strategists claim that credit is still in a ‘sweet spot’ and will continue to offer substantial returns in 2010. They also say that mutual fund demand is likely to remain strong. Despite two weeks of record outflows from credit funds –… http://www.creditflux.com//2010-03-04/Credit-insweet-spot-for-returns-in-2010-says-Goldman/ 2010-03-04 11:25:00 Traders say that the new bond issue from hospital operator HCA, the largest high yield bond issue of the year at $1.4 billion, will be closely watched in the secondary market http://www.creditflux.com//2010-03-04/Traders-watch-secondary-performance-of-jumbo-junk-issue/ 2010-03-04 11:15:00 Stifel Nicolaus has announced that it has hired a 15-strong team led by Stephan Kuppenheimer from FSI Capital to form a new business, known as Stifel Capital Advisors. The New York-based business will provide asset management, portfolio advisory and capital markets services to financial institutions and governmental entities, according to… http://www.creditflux.com//2010-03-04/FSI-Capital-team-jump-ship-to-Stifel/ 2010-03-04 10:17:00 Credit hedge fund manager BlueMountain Capital Management has announced that it has hired Jennifer Strickland, who was previously in a similar role at HBK Capital, as managing director responsible for investor relations and marketing. It has also promoted Josh Drazen to the role of managing director for investor relations and… http://www.creditflux.com//2010-03-04/BlueMountain-hires-for-investor-relations-role/ 2010-03-04 10:07:00 An ABS CDO bid-wanted in competition auction, in which the majority of tranches offered are more than $100 million in size, has bids due today http://www.creditflux.com//2010-03-04/Surging-ABS-CDO-demand-prompts-blockbuster-bid-list/ 2010-03-04 09:58:00 A US bank has upsized its forthcoming US cashflow CLO, which is likely to become the first new CLO of 2010 http://www.creditflux.com//2010-03-04/Arranger-upsizes-planned-new-issue-CLO/ 2010-03-04 09:33:00 Recent days have seen some impressively lofty levels on secondary CLOs http://www.creditflux.com//2010-03-03/X-bonds-attract-lofty-bids-in-secondary-CLO-trading/ 2010-03-03 15:00:00 Wind Hellas bonds have fallen today following yesterday’s fourth quarter results http://www.creditflux.com//2010-03-03/Wind-Hellas-bonds-take-hit-after-market-digests-numbers-/ 2010-03-03 12:29:00 A boutique investment bank has made a senior hire in London http://www.creditflux.com//2010-03-03/Managers-London-office-head-jumps-to-growing-boutique-bank/ 2010-03-03 11:33:00 If US traders were hoping that Europe would give some direction to credit flows today then they will have been little helped by the virtual flatness of iTraxx Europe and Crossover so far today http://www.creditflux.com//2010-03-03/Traders-cut-risk-as-Greece-rumours-circulate/ 2010-03-03 11:30:00 High yield companies are hoarding increasing amounts of cash, notes Morgan Stanley analyst Jocelyn Chu, in the bank’s latest Leveraged Finance Insights report. She calculates that US high yield companies have increased their cash balances by almost 30% in the past year to $141 billion, as they strive to rebuild… http://www.creditflux.com//2010-03-03/Watch-out-for-issuers-with-cash-says-Morgan-Stanley/ 2010-03-03 10:05:00 In its latest Credit Line research report, Goldman Sachs adds BT Group’s 8.625% 2030 bonds to its list of “picks”. The firm favours these bonds in place of the 5.95% 2018 notes that were previously on its pick list. It says 25 basis point coupon step-up in the longer dated… http://www.creditflux.com//2010-03-03/Goldman-favours-BT-stepup-bond/ 2010-03-03 10:00:00 In its most recent European Credit Alpha research piece, Barclays Capital argues that there are negative basis opportunities in fallen angel names. Short duration bonds issued by these companies make sense in the current low rate environment, says the report, and the near term default risk is low, for bonds… http://www.creditflux.com//2010-03-03/Barcap-touts-fallen-angel-negative-basis-trades/ 2010-03-03 09:58:00 Single A and triple B European CLOs should generate double digit returns under most scenarios at today’s prices, calculates Morgan Stanley. In their CDO Market Insights report published last week, the bank’s structured credit researchers say that fundamentals only go part of the way to explain the difference between secondary… http://www.creditflux.com//2010-03-02/European-CLO-mezz-is-undervalued-says-Morgan-Stanley/ 2010-03-02 18:39:00 On Friday five bonds were sold from a bid list of six mezzanine cash flow CLOs, most of which were originally rated triple A or double A http://www.creditflux.com//2010-03-02/Diverse-CLO-bwic-attracts-bids/ 2010-03-02 17:20:00 Over the past couple weeks pricing on total return swaps to fund portfolios of loans has tightened http://www.creditflux.com//2010-03-02/TRS-tightening-gives-hope-to-loan-buyers/ 2010-03-02 17:05:00 Secondary CDO market sources report robust volumes of CLO equity in recent trading sessions. http://www.creditflux.com//2010-03-02/CLO-secondary-equity-sales-increase/ 2010-03-02 16:34:00 A US mutual fund manager is merging one of its closed end credit funds with another fund which invest in a broader range of fixed income assets http://www.creditflux.com//2010-03-02/US-loan-manager-winds-up-credit-opportunities-fund/ 2010-03-02 14:47:00 Moody's has downgraded $4 billion in face value of CSO tranches issued by Lehman Brothers following the recent New York court ruling on the Dante series of CDOs. All the deals in question were secured by one of two funds linked to Lehman Brothers, the Lehman Brothers ABS Enhanced Libor… http://www.creditflux.com//2010-03-02/Moodys-downgrades-Lehman-CSOs-following-court-ruling/ 2010-03-02 14:26:00 IntercontinentalExchange has announced that its US and European central counterparties have now cleared $6.3 trillion in gross notional of credit default swaps since they were launched. It says that ICE Trust, the US entity, accounts for $4.2 trillion of this volume, with Ice Clear Europe having cleared $2.1 trillion. The… http://www.creditflux.com//2010-03-02/ICE-says-it-has-cleared-63-trillion-of-credit-default-swaps/ 2010-03-02 14:07:00 There is an error in the credit hedge funds data on page 23 of the March issue of Creditflux, which is published today. The correct returns for the Prytania Athena Fund, listed in the ABS/CDOs/CLOS category, is as shown below and on our website at credit hedge fund data .… http://www.creditflux.com//2010-03-02/Prytania-Athena-Fund-corrected-data/ 2010-03-02 12:38:00 Fitch Solutions has announced that software provider SuperDerivatives will use its credit default swap prices as part of its valuations service. SuperDerivatives provides valuation solutions for banks, corporations, fund managers and others, according to the announcement. http://www.creditflux.com//2010-03-02/SuperDerivatives-links-up-with-Fitch-Solutions-on-CDS-pricing/ 2010-03-02 12:27:00 Goldman Sachs yesterday sold $2 billion of dollar denominated 2020-dated senior notes. The 5.375% notes yield 190bp over treasuries. 10-year credit default swaps referencing the bank trade at 132bp currently. US banks are said to be looking to secure longer-term funding to replace 2012-dated debt guaranteed by the government. US… http://www.creditflux.com//2010-03-02/Goldman-issues-2-billion-of-10year-notes/ 2010-03-02 12:12:00 A US bank says that its forthcoming CLO is going extremely well and should price next week. http://www.creditflux.com//2010-03-02/US-bank-expects-to-price-balance-sheet-CLO-next-week/ 2010-03-02 12:07:00 US traders reported yesterday that cash credit continues to receive strengthening appetite, with smaller high yield new issuance doing particularly well http://www.creditflux.com//2010-03-02/High-yield-cash-appetite-growing-say-traders/ 2010-03-02 11:55:00 Outperformance of the iTraxx SovX Western Europe index over recent sessions has seen it reach virtual parity with the Europe investment grade corporate credit index today at 84bp http://www.creditflux.com//2010-03-02/SovXEurope-hit-parity-as-Greece-leads-charge-tighter/ 2010-03-02 11:54:00