High Yield Report articles from January 2003

High Yield Report archives from January 2003

High Yield Bonds Poised to Outperform Treasuries in 2003.
January 6, 2003... High yield strategists and investors have reason to believe that their asset class will be a strong performer in 2003, and many are expecting it to outperform US 10-year Treasuries. Merrill Lynch's high yield strategist, Christopher Garman,...

European HY Players Hope for Better 2003.(high yield market)
January 6, 2003... After a disappointing year, in which European high yield returned a dismal 8.91% according to JP Morgan's euro high yield index, and issuance, at 3.7 billion, was down 49% from 2001, it is hard to imagine things getting any worse in 2003. ...

Cautious Optimism for Loan Market in 03.(syndicated loans)
January 6, 2003... They are still a little cautious, hesitant to venture too optimistic an outlook for the syndicated loan asset class in 2003. But after a robust fourth quarter during which investor appetite for new deals soared, most loan market pros are...

CSFB Holds Onto Top Spot in High Yield Rankings.(Credit Suisse First Boston)
January 6, 2003... The high yield market ended the year on a positive note, with a whopping 27 deals worth $6.5 billion being brought to the market in December just ahead of the holiday break. A good number of those deals were underwritten by Credit Suisse...

Disclosure and Governance at Top of Investor Wishlist for 2003, PricewaterhouseCooper Survey Says.
January 6, 2003... It is no small wonder that investor confidence was so severely battered in 2002, what with the fall of corporate giants like Enron and WorldCom, the travails of Vivendi, and the collapse of one of the Big Five, Andersen. With investment banks...

2002 Bank Loan Recovery Rates Fall to An All-Time Low.
January 13, 2003... Standard & Poor's annual default recovery survey, released last week, painted a grim picture for holders of defaulted loans. As a result of the record defaults of 2002, recovery rates - both in terms of ultimate recovery and trading price...

Class Action Suit Sets Minor Precedent.(Enron Corp.)
January 13, 2003... A recent Houston federal court decision to allow a class action suit against Enron and several other firms that advised its implementation of questionable strategies - ones that allegedly helped it manipulate financial statements - may not set...

Being Smaller Does Pay: Bear Stearns.
January 13, 2003... Playing the dual role of advisor and lender to high yield issuers landed some big one-stop shops in hot water last year. But while larger firms might be under the gun, smaller players like Bear Stearns have been able to keep the tide at bay and...

Credits Join the Queue Both in US and Europe.
January 13, 2003... The first week of the year was quiet, but deals are certainly in the pipeline, sources say, as many companies need to refinance. Investors are also clamoring for paper, and bankers are quietly working out deals to suit both issuers as well...

Cash-Laden Investors Push Markets Up.
January 13, 2003... US If companies want to borrow money, they ought to do it now. High yield investors' pockets are bulging with cash, "and they don't know what to do with it so everyone's buying and everything's higher," a trader said last week. ...

2002 CDO Roundup: A Mixed Bag of Opinions.(collateralized debt obligations)
January 13, 2003... Despite the negative news that surrounded the CDO marketplace in 2002, some rating agencies and banks weighing the performance of the asset class say things were not so downbeat. "The growth we saw in the market was in line with our...

Dead Cat Bounce: Too Late to Buy January Bounce Bonds?
January 20, 2003... The high yield market is on a roll. Over the past three months, the average high yield fund has been up 10%, 40% on an annualized basis (although it is too early to annualize returns two weeks into the year). Evidently, the market is...

Brazil, Venezuela: Still Problems in 2003.
January 20, 2003... Standard & Poor's sovereign analysts, who released their outlook for 2003 last week, do not expect any major destabilization to or shrinkage of the global economy in 2003, but the prognosis for some nations is far worse than for others. ...

Patience Will Reward Franklin Templeton.
January 20, 2003... The past 10 months have been busy ones for Richard D'Addario, loan portfolio manager at Franklin Templeton Investments. After assuming responsibility for several of Franklin's loans funds in March 2002, he embarked on some major portfolio...

Bumper Crop of New Issues In The Pipeline for 2003.
January 20, 2003... US The US primary market is starting to ramp up quickly, and the deal pipeline is fattening up fast. Levi Upsizes Issue Denim King Levi-Strauss priced a B3/BB- rated, $100 million add-on to its 10-year 12.25% senior subordinated...

Markets Take a Breather after Two Week Active Spurt.
January 20, 2003... US The US secondary market was strong for most of last week, but took a breather toward the end of the week as the new issue calendar started to ramp up, traders said. Investors seemed also to be a little more diligent in what they...

Distressed Debt CDOs Round Bend for Upgrade.
January 20, 2003... After 12 months of record-making downgrades, more than one investor probably flinched when Moody's Investors Service issued an upgrade watch last week for a few classes in both ARK II CLO 2001-1 and Endeavour LLC CDOs, transactions backed...

MTS is a Good Deal, But Russian Risk Remains.(Moble TeleSystems)
January 27, 2003... Hailed by many as the leading cellular phone company in one of the fastest growing mobile phone markets in the world, Russia's Mobile TeleSystems (MTS), certainly appears to have a lot going for it - so much so that while other European...

XM Satellite Radio: Will it Stay in Orbit?
January 27, 2003... Satellite radio, like satellite TV before it, is now offering 100 channels, not only to homes, but to cars and boom boxes as well, and the market is going for it in a big way. Heavyweights such as General Motors, Honda and BMW are including the...

Venezuela's PDVSA Is On the Brink.
January 27, 2003... The ongoing war between Venezuelan president Hugo Chavez and workers on a national strike has taken its toll on Petroleos de Venezuela, the country's oil company, a once untouchable giant. Oil production has drastically dried up, and has placed...

Eco-Bat To Price First HY Deal of 2003 in Europe.(high yield)
January 27, 2003... US Casella Waste First in Line Casella Waste System's private placement of a B3/B-rated $150 million offering of 9.75% senior subordinated notes due 2013, pricing at par via Goldman Sachs, was the first of numerous deals to price last...

Weaker Equities Quash HY Gains.
January 27, 2003... US As predicted, the US secondary market has begun to cool off, and investors should be warned to use a bit of caution, traders said. Mixed economic numbers and corporate earnings haven't been great, a strategist said. To sustain the...

FAS 46: Not as Tough as CDO Managers Had Thought.(financial accounting standard)
January 27, 2003... A week after its release, much anticipated new guidance from the Financial Accounting Standards Board (FASB) to account for special purpose entities (SPEs) appears unlikely force an unwanted slew of collateralized debt obligations (CDOs) back...