High Yield Report articles from February 2006

High Yield Report archives from February 2006

Distressed Debt: Distressed: No Major Action Until '07.
February 6, 2006... The vultures were patient in 2005, as each one waited to stake its claim in the next golden opportunity to hit the distressed debt universe. But such opportunities did not come as often as distressed players would have liked. Indeed, with the...

US Company News: The New Issue Market Shapes Up.
February 6, 2006... The high yield primary market seems to have finally found its footing as the first month of the year came to a close. Issuance remained solid last week, although volume for the month did not reach the height that many investors had strongly...

Regulation: Soft Dollar Usage May Come Under Scrutiny.
February 6, 2006... Only a tiny fraction of fixed income trades generates soft dollars, and in fact many seasoned pros are unaware that any such trading goes on in their market. Soft dollars, after all, are earned through commissions, which technically do not...

Sector Analysis: Auto Suppliers Face Tall Order In 2006.
February 6, 2006... Coming off of a year marked by four bankruptcies, numerous downgrades and a flurry of requests for covenant relief, the turn of the calendar to 2006 hasn't brought with it much help to the automotive supplier sector, at least not yet. ...

CDOs: Upgrades Up For CBOs In 2005.
February 6, 2006... Thanks in part to a low default rate, 2005 was a strong year ratings-wise for collateralized bond obligations (CBOs), according to a recent report by Standard & Poor's. CBO managers saw 50 upgrades compared with only 15 downgrades - a...

Profile: Libertas Partners Separates Itself From The Pack.
February 6, 2006... In a high yield market that has seen many boutique trading firms struggle to generate profits in recent years, the Greenwich, Conn.-based high yield and distressed broker dealer Libertas Partners has managed to set itself apart. Instead of...

Gainers & Losers: Adelphia/Charter.(Adelphia Communications Corp.)(Charter Communications Inc.)(Brief article)
February 6, 2006... Topping the gainers list last week was Adelphia Communications Corp. The US Federal Trade Commission approved the $17.9 billion sale of Adelphia's assets to Time Warner Cable and Comcast Corp., causing Adelphia's bonds to trade up between eight...

Market Buzz.(Steve R. Vigliotti joins NYFIX Inc.)(Thomas Castaignede joins Societe Generale Asset Management)
February 6, 2006... Steve R. Vigliotti, formerly of the broker dealer Maxcor Financial Group, has been appointed as the new CFO of NYFIX. He succeeds former NYFIX CFO Mark R. Hahn, who has been appointed senior vice president of finance. Vigliotti most...

AMG Data Services.(Brief article)
February 6, 2006... The tide turned for high yield mutual fund flows last week. After three consecutive weeks of outflows to high yield funds, a net inflow of $27 million was reported for the week ended last Wednesday, according to AMG Data Services. (c) 2006...

US Company News: Linens Furnishes Market With Notes.(Linens 'n Things Inc)
February 13, 2006... Not only did the much awaited leveraged buyout financing for Linens n Things hit the high yield market last Wednesday, but it priced tighter than its originally rumored price talk. Linens offered $650 million in B3/B eight-year floating rate...

Strategy: Why Mutual Funds And Junk Might Not Mix.
February 13, 2006... The high yield bond market has faced its share of drama over the past year. Automotive fallen angels altered the landscape of the market, and outflows plagued high yield mutual funds for most of 2005, ultimately resulting in over $11 billion...

European Company News: Some Euro Jumbo Deals Price Tight, Trade Down.
February 13, 2006... Even though most European high yield investors are still sitting on piles of cash to invest, eager for new paper, the large deals that have been coming their way have not been faring as well as expected, sources say. Last week, European...

US Company News: Textron Asset Sale Enters Final Round.
February 13, 2006... Aluminum giant Alcoa is thought to be among the finalists, along with four or five private equity firms, as the auction for Textron's automotive fastening systems unit enters its final round. None of the participants has a clear edge at this...

AMG Data Services.
February 13, 2006... Last week, high yield mutual funds reported a net outflow of $40.3 million, according to AMG Data Services. Inflows were reported by 140 funds, while 233 funds reported outflows. (c) 2006 High Yield Report and SourceMedia, Inc. All Rights...

CDOs: Lots More Action For CDOs In 2006.(collateralized debt obligation)
February 13, 2006... More collateralized debt obligation (CDO) volume is expected this year than in 2005, according to attendees at the 2006 American Securitization Forum held in Las Vegas two weeks ago. About $155 billion of CDO issuance came to the market in...

European Market View: More LBOs, Fallen Angels May Keep Euro HY On Track In '06.(leveraged buyout)
February 13, 2006... Even though total European high yield issuance was down in 2005 compared with 2004, most market players agree that the European speculative grade bond market came into its own last year. Investors swallowed larger deals from a more diversified...

Gainers & Losers: Delta/Radiologix.(Delta Air Lines Inc)(Radiologix Inc)
February 13, 2006... Making the gainers list last week was Delta Air Lines. On January 26, the company closed a $300 million letter of credit facility with Merrill Lynch, which will provide Delta with liquidity by freeing up a portion of its credit card reserve. It...

Market Buzz.(Moody's Investor Service)(Standard & Poor's Corp)(Imperial Capital Bank)
February 13, 2006... Moody's Investors Service reported that the global speculative grade corporate default rate was at 1.8% at the end of January, down from 1.9% at the end of 2005. Moody's forecasts this default rate will rise to 3.3% at the end of January 2007....

European Mezzanine: Weetabix Deal Shows Popularity Of Euro Mezz.
February 20, 2006... As far as subordinated debt issuance in Europe is concerned, the GBP616.6 million recapitalization for UK cereal maker Weetabix said it all. Following a reverse price flex, the highly popular deal's GBP80 million, nine-and-a-half-year...

Restructuring: Speedier Bankruptcies: The Wave Of The Future?
February 20, 2006... With the bankruptcy process becoming an increasingly expensive option for companies to undergo, due in large part to the amended US Bankruptcy Code that took effect last October, many market players expect to see an increase in speedy...

US Company News: Investors Expect Progress For Primus.(Primus Telecommunications Group Inc.)
February 20, 2006... What a difference a quarter makes - at least that's the case for Primus Telecommunications Group's bondholders. Primus' bonds have been some of the most active in the high yield market since the company released its fourth quarter and full year...

Syndicated Loans: Loan CDS Proposed Standard Docs Released.(credit default swaps)
February 20, 2006... The notion of establishing standard documentation for credit default swaps (CDS) referencing secured loans moved one step closer to materializing last week, as an ad hoc group of market constituents finished its work on a proposal for just...

US Company News: Navistar Receives Notice Of Bond Defaults.(Navistar International Corp.)
February 20, 2006... After receiving a trustee notice of default on a number of its notes, Navistar International Corp. is now looking to the loan market for a $1.5 billion unsecured term loan to pay back the bond debt on which the Warrenville, Ill-based company is...

Profile: Seneca Gravitates To Double-Bs, But Remains Open To Lower Rated Names.(Seneca Capital Management)
February 20, 2006... The high yield team at Seneca Capital Management managed to generate profits last year by largely staying true to its high quality mandate. At the same time, however, the team kept a close, opportunistic eye on the lower reaches of the credit...

Gainers & Losers: Reptron/GMAC.(General Motors Acceptance Corp.)(Reptron Electronics Inc.)(Brief article)
February 20, 2006... Delta Air Lines' bonds traded up last week on the news that it is renegotiating its jet leases. This move is estimated to save the company $200 million per year. Many of Delta's equipment trust bonds, as well as its bonds backed by aircrafts,...

Market Buzz.(John Kempf joins Barclays Capital Inc.)(Eugenio Alarcon joins Deutsche Bank AG (Frankfurt, Germany))
February 20, 2006... Barclays Capital has hired John Kempf as a director and senior high yield analyst for the US lodging, leisure and gaming sectors. Based in New York, Kempf, who formerly worked as the director of credit research at Harbert Management Corp., will...

AMG Data Services.(Brief article)
February 20, 2006... High yield mutual funds reported $116 million in outflows for the week ended last Wednesday, according to AMG Data Services. This marks the second consecutive week of reported outflows. Outflows were reported by 239 funds last week, while 128...

Bankruptcy: Does GM Embody Strategic Ch. 11 Risk?(General Motors Corp.)
February 27, 2006... Although the risk of a voluntary strategic bankruptcy filing is not common among high yield issuers, it is never completely off the radar screen for speculative grade debt investors. According to Moody's Investors Service, should an otherwise...

Sector Analysis: Bondholders Continue To Root For XM, Sirius.(XM Satellite Radio Inc. and Sirius Satellite Radio Inc.)
February 27, 2006... Over the past several years, both US satellite radio broadcasters Sirius Satellite Radio and XM Satellite Radio have prioritized rapid growth at the expense of free cash flow. This, of course, can be a bondholder's worst nightmare, but many...

Market View: USF Reform Could Hurt Wireless Cos.
February 27, 2006... Over the past few years, many wireless operators, particularly smaller players in rural areas, have been relying upon disbursements from the Universal Service Fund (USF) as means of increasing cash flow with little or no additional cost to...

Market View: Retailers Set To Shop For Debt In 2006.
February 27, 2006... The high volume of M&A activity in the retail sector provided the leveraged bank loan and high yield bond markets with a good number of deals in 2005. And if activity in the first two months of this year is any indication of what's in store for...

US Company News: Ball Seeks New Deal, US Can Tenders Notes.(Brief article)
February 27, 2006... Ball Corp. has received a commitment from JPMorgan and Deutsche Bank for $500 million in senior secured financing in connection with the Broomfield, Colo.-based company's acquisition of US Can Corp.'s US and Argentinean operations, Ball...

Profile: FTAM And Fort Washington Join Forces To Tap Into High Quality HY.(Fifth Third Asset Management)
February 27, 2006... Last November, Fifth Third Asset Management (FTAM) launched the latest addition to its family of more than 30 mutual funds - a high yield bond fund. Mitch Stapley, FTAM's chief fixed income officer, said the impetus behind the new fund's launch...

Gainers & Losers: Northwest/GM.(Northwest Airlines Corp.)(General Motors Corp.)(Brief article)
February 27, 2006... Northwest Airlines was a gainer last week, as it arrived at a framework for a contractual deal with its pilots. There is a strong sense that labor negotiations are starting to clear up, a source said. Northwest's 7.95% notes due 2016 hit 96.25...

Market Buz.(Robert M. Paine joins GSC Partners)(Ashok Nayyar joins Morgan Stanley)
February 27, 2006... Alternative asset management firm GSC Partners announced that it has appointed Robert M. Paine as senior managing director in charge of the firm's new hedge fund. Paine was recruited following the departures last year of Drew Doscher and...

AMG Data Services.(Brief article)
February 27, 2006... In their third consecutive week of outflows, high yield mutual funds reported net outflows of $31 million for the week ended last Wednesday, according to AMG Data Services. The number of funds reporting outflows fell to 232 from 239, while the...