High Yield Report articles from July 2005

High Yield Report archives from July 2005

Distressed Debt: Top Players Jump To Vulture Funds.
July 4, 2005... Defaults in corporate America hit an eight-year low of 2.2% in May, but CFOs should not get too comfortable with this state of affairs. Some of the brightest lights in the vulture fund business predict a surge in distressed situations by...

Spotlight On Inflation: Inflation Angst Is On The Back Burner.
July 4, 2005... In a mere handful of weeks, players in the bond markets have decided that the threat of price inflation, which loomed menacingly this spring, has been defeated. But analysts say that while these sentiments could spur a host of new issuance in...

Regulation: TRACE Alters The Playing Field For Traders.(Trade Reporting and Compliance Engine)
July 4, 2005... In an effort to make the US corporate bond market as transparent as the stock market, the National Association of Securities Dealers (NASD) launched its Trade Reporting and Compliance Engine (TRACE) system in July 2002, to level the playing...

Credit: BBB-/Baa3 Rated Ceridian, Arrow Aim To Stay I-Grade.
July 4, 2005... It is common for BBB- rated companies with negative outlooks to eventually become fallen angels. In fact, of all BBB- rated companies with negative outlooks, 30% are eventually downgraded to speculative grade, according to a recent report by...

Rating Agencies: Fitch Integrated Into Several Indices.(Banc of America Securities L.L.C. and Lehman Brothers Holdings Inc. to incorporate Fitch Ratings)
July 4, 2005... Several new developments transpired for bond indices last week, as Banc of America Securities (BAS) and Lehman Brothers were both scheduled to incorporate Fitch Ratings into their index methodologies on July 1, and as the International Index...

Trustee Profile: BNY Trustee Biz Looks To Stand Out Among Competitors.(Bank of New York's Corporate Trust Division)
July 4, 2005... The Bank of New York's (BNY) Corporate Trust Division - a business that provides trustee and agency services for a wide array of global securities-related transactions, including those for high yield - has historically strived to stand out...

Gainers & Losers: Western Oil/ATA.(Western Oil Sands Inc., ATA Holdings Corp.)(Brief Article)
July 4, 2005... Salton, Inc.'s bonds traded back up last week, after an earlier decline due to a missed coupon payment last month. Salton will carry out a debt to equity exchange with 33% of holders of its 10.75% bonds. The bonds, due in December 2005, gained...

Market Buzz.(SG Corporate and Investment Bank's planning, Jeffrey J. Weaver joined KeyCorp., Christine Gallagher joined Harris Nesbitt Gerard)
July 4, 2005... In a move designed to capitalize on its European leveraged finance business, SG Corporate & Investment Banking, the corporate and investment banking arm of the Societe Generale Group, announced last week that it plans to start up a leveraged...

AMG Data Services.(High yield mutual funds' outflows)(Brief Article)
July 4, 2005... High yield mutual funds saw outflows of $178 million in the week ended last Wednesday, June 29, according to AMG Data Services. This follows $56 million in inflows for the previous week. (c) 2005 High Yield Report and SourceMedia, Inc. All...

Trustee Spotlight: Third Party Policing Tackles Trustee's Role.(Bank of New York's Corporate Trust Division)
July 11, 2005... The capital markets have always been fluid territory, and a measure of uncertainty is all part of the game. But, according to trustees in the Corporate Trust Division at The Bank of New York (BNY), there is no uncertainty regarding their role...

Europe: Back In Business: Euro HY Off To Solid Q3 Start.
July 11, 2005... It looks like the European high yield market is back in business after it was shut down for some six weeks in the second quarter. And, although the economic fallout from last week's attacks in London still remains to be seen, sources predict...

League Tables: BofA Takes Top Spot For HY In First Half '05.
July 11, 2005... In the race for the throne ceded by Credit Suisse First Boston at the end of 2004, Banc of America Securities eased in front of JPMorgan and Citigroup (which led in issuance for the first quarter 2005) to take the top spot in US high yield...

Syndicated Loans: Loan Fund Outflows Not An Expected Trend.
July 11, 2005... Although prime rate loan funds experienced outflows to the tune of about $103 million in the month of May (the first outflows recorded thus far for the year), loan market participants say this is nothing to be concerned about. Loan funds remain...

Distressed Debt: Germany: Attractive For Euro Distressed.(Strategic Research Institute's Eighth Annual Distressed Debt Investing Forum)(Brief Article)
July 11, 2005... Germany is a great place to find attractive distressed debt investment opportunities, said panelists at Strategic Research Institute's Eighth Annual Distressed Debt Investing Forum held late last month in New York. In fact, according to a...

Strategy: Measures CFOs Can Employ To Manage The Next Downturn.(market downturn)
July 11, 2005... by Joseph P. Powers, marketing manager, mid-Atlantic region, Bank of America Business Capital Analysts predict that the next market downturn is just a year or two away. Already, the robust economy of the past few years is showing some...

Gainers & Losers: J.C. Penney/Foamex.(financial reports of General Motors Acceptance Corp., J.C. Penney Corporation Inc., Foamex International Inc.)(Brief Article)
July 11, 2005... Several of last week's gainers emerged following positively reported June sales totals. General Motors Acceptance Corp. (GMAC), for example, saw its bonds rise following news that General Motors Corp. reported a 47% increase in sales for the...

Correction.(Correction Notice)
July 11, 2005... In HYR's 7/4/05 article, "Top Players Jump To Vulture Funds," data points regarding bonds rated B- or lower were incorrectly attributed to research by Edward Altman, professor at New York University. Instead, the data comes from Standard &...

Market Buzz.(Larry Haag joined Cantor Fitzgerald L.P., Ronald S. Lloyd joined Credit Suisse First Boston L.L.C., Moody's Investor Service reported second quarter sales)
July 11, 2005... Last week, Cantor Fitzgerald, L.P. announced that Larry Haag has joined Cantor Fitzgerald's debt capital markets group as managing director and head of corporate bond sales. Haag comes to Cantor Fitzgerald by way of Raymond James Financial,...

Restructuring: The ABCs Of A Successful Turnaround.
July 18, 2005... Liquidity, transparency and sound management are just three of the many critical components that lead to an effective corporate restructuring, according to restructuring gurus who spoke on a recent panel at Strategic Research Institute's Eighth...

US Company News: Keep Em Coming: Investors See Deal Resurgence.
July 18, 2005... With the US high yield forward calendar's apparent resurgence in June continuing into this month, investors are now being served a stack of new issues to choose from. July's offerings thus far include a deal from a strong debut high yield...

Sector Analysis: Homebuilding Sector Still On The Up-And-Up.
July 18, 2005... Amidst a persistently robust housing market and steadfast consumer demand, the homebuilding sector is attempting to shake off its cyclicality. The present upturn in the housing sector has lasted since 1991, according to Robert Curran, senior...

Firms: DeAM Sheds Much Of UK/Philly Biz, But Keeps HY.(Deutsche Asset Management Inc. acquired Aberdeen Asset Management PLC)
July 18, 2005... Open-ended investment company Aberdeen Asset Management has entered into an agreement to acquire the traditional fixed income business of Deutsche Asset Management's (DeAM) UK- and Philadelphia-based offices for up to GBP265 million ($465...

Market View: S&P: HY Waters Now Calm.(Standard & Poor's Corp., high yield)
July 18, 2005... The waters are now calm in the US high yield market and the remainder of 2005 should not behold a recurrence of the second quarter's volatility, according to a report issued by Standard & Poor's earlier this month. Now that junk investors...

Trustee Spotlight: Trustees' HY Transaction Processes Diverge Across Regions.
July 18, 2005... The Bank of New York's (BNY) Corporate Trust Division has been a major trustee player in the US markets for some 70 years. And it has been at the top of the high yield trustee league tables in recent years, according to Thomson Financial. But...

Gainers & Losers: Levi Strauss/GenCorp.
July 18, 2005... General Motors Corp.'s (GM) bonds jumped up on the gainers list once again last week, as it was upgraded by Lehman Brothers from underweight to equalweight. News that GM's European sales rose 2.3% from last year also led GM's stock to jump 7%...

Market Buzz.(Daniel Bender and Stephen L. Kunkel joined AEG Partners L.L.C., Jonathan Timpson joined The Bank of New York, Henry Tsang and David Cheng joined Bear Stearns Companies Inc.)
July 18, 2005... AEG Partners, a strategic advisory firm that caters to distressed middle market companies, announced two new appointments to its Chicago office last week. Daniel Bender and Stephen L. Kunkel have both been appointed as managing directors and...

AMG Data Services.(high yield bond funds reports)(Brief Article)
July 18, 2005... Net outflows from high yield bond funds totaled $12.4 million as of last Wednesday, according to AMG Data Services. This compares with $80.7 million of inflows in the previous week. (c) 2005 High Yield Report and SourceMedia, Inc. All...

Credit: Rising Default Rates Expected Soon.
July 25, 2005... The trailing 12-month US high yield default rate may have decreased even more from its seven-year low of 1.5% at the end of 2004 to 1.1% at the end of June, but that may be as low as the default rate will go in this credit cycle, according to a...

Sector Analysis - Auto Suppliers: Liquidity, Diversity Is Key.
July 25, 2005... In a year characterized by increasing automobile sales, but still sluggish auto maker profits, speculative grade auto parts suppliers have grappled with deteriorating liquidity, high raw materials costs and a steady stream of credit downgrades...

Market View: Bondholders Take Cos To Task For Filing Late.
July 25, 2005... Bondholders have always taken action against issuers that fail to make payments, or when financial woes make a pending payment unlikely. But in recent weeks, they have taken to task at least two corporate borrowers for a much more technical...

US Company News: SunGard's Junk Deal To Price This Week, Bank Deal Closed.
July 25, 2005... After four months of speculation and two weeks of syndication, it was done. Late last week, JPMorgan, Deutsche Bank, Citigroup, Goldman Sachs and Morgan Stanley wrapped up syndication of the $5 billion credit facility to back the $11.3 billion...

Industry: Transportation Sectors Look Favorable.(Brief Article)
July 25, 2005... According to Standard & Poor's' recent report on the global airfreight, railroad, transportation leasing, and trucking industries, conditions look relatively positive in the global transportation sector. Airfreight is benefiting from the...

Deal Profile: Grant Prideco Drills Through Volatile HY Market To Complete July Issue.
July 25, 2005... Earlier this month, Houston-based Grant Prideco, Inc. entered the ranks of companies that have successfully tapped the high yield market in the wake of the $292 billion absorption of General Motors Corp.'s (GM) newly junk-rated debt load....

Gainers & Losers: Maytag/Anchor Glass.(Brief Article)
July 25, 2005... After a missed coupon payment, Salton, Inc.'s proposed exchange for equity has been successful, as 62.8% of its 10.75% noteholders, and 34.6% of its 12.25% noteholders agreed to the exchange, causing both notes to top the gainers list last...

Sector Analysis: Beverage Sector Is Stable, But Beware Of High Leverage Levels.
July 25, 2005... The beverage sector appears to be on track for continued stable performance, but with five out of 35 companies rated by Moody's Investors Service either on review for downgrade or with negative outlooks, significant credit risk is evident in...

Market Buzz.
July 25, 2005... The Bond Market Association (BMA) has announced that Randolph Snook, a long-time fixed income market participant, has been appointed as executive vice president and head of the BMA's New York office. Snook was previously a partner at member...

AMG Data Services.(Brief Article)
July 25, 2005... According to AMG Data Services, high yield mutual funds reported outflows of $52.5 million for the week ended July 20. This follows the prior week's $21.7 million of outflows, and it marks the second consecutive week of high yield fund...