High Yield Report articles from May 2008

High Yield Report archives from May 2008

Aviva High Yield Bulks Up And Goes Global.
May 5, 2008... Aviva Capital Management's new head of high yield, Todd Youngberg, sees now as a good time to jump into the junk bond market, which holds opportunities for those who think globally. Growth in demand for global high yield over the last several...

Investors Warming Distressed Bench.
May 5, 2008... Private equity groups, banks, hedge funds and others have raised large pools of capital to invest in distressed debt. However, the size and scope of the opportunity is still unclear, and market developments have not given a definitive signal...

A Few Reasons To Break Out Your Horns.
May 5, 2008... Admit it, you woke up feeling a bit bullish this morning. Maybe in your off time you hang with Goldilocks, or maybe the latest bits of good news have yet to convince you that we're "out of the woods," as they say. But despite your bearish...

Investors Driving Ford's $1.1B New HY Bonds.
May 5, 2008... Ford Motor Credit priced $1.1 billion in high yield bonds last week in response to investor demand. The drive-by financing was the largest new public high yield bond issuance so far this year and the first to break the billion-dollar mark since...

Mezzanine Lenders: Show Us the Money.
May 5, 2008... Mezzanine lenders have held tight throughout the credit crisis; however, they have yet to squeeze out significantly higher prices. According to Lincoln International's Ronald Kahn, a managing director at the advisory firm, mezzanine debt,...

Trouble Takes Stage Through Revolving Door.(Market share report)
May 5, 2008... Revolving credit facilities are typically far down the list of things institutional investors have to fret about. However, that might not be the case by the end of the second quarter as debt maturities loom for various stressed companies,...

HY Speeds Up On Road To Recovery.
May 5, 2008... Signs were good last week in the high yield market, and investors began perking up, confident that the spate of good economic news would not inveigle them to rush headlong into another bubble. "The bottom line is that the market is...

The Return Of The Greenback (In Loans).(Report)
May 12, 2008... Cash loans are outperforming synthetic loans, giving a shot of adrenaline to a recuperating leverage finance market. And market sources say they expect this trend to continue as traders focus more on fundamentals than technicals. For...

Has Wall Street Escaped Its Credit Woes?
May 12, 2008... Sentiment about U.S. credit markets has improved in recent weeks, thanks in part to a March bailout of Bear Stearns orchestrated by the Federal Reserve, as well as a steady campaign by the U.S. central bank to improve the liquidity of fragile...

Energy Issuers Ride Oil Price Geyser To HY Market.
May 12, 2008... As I write this, oil prices hover at a mind-boggling $123 a barrel, and pain at the gas pump has created a united front of kvetching across an otherwise divided country. It's also created, quite contrarily, a happy little boom on the high yield...

DirecTV Leads Booming Week On High Yield Primary.
May 12, 2008... Digital television service provider DirecTV priced $1.35 billion in 7.625% senior notes due 2016 at par, High Yield Report's new Web site leveragedfinancenews.com reported last Wednesday. Price talk on the notes was between 7.5% and 7.75%....

ResCap Bondholders See Few Options.
May 12, 2008... High yield bond investors who hold Residential Capital notes last week expressed resignation over the bond exchange offer the company has initiated. And other investors agree that, while it is not the best deal around, the bondholders don't...

Bumps On The Road To HY Recovery.(High Yield)
May 12, 2008... Investors maintained interest in high yield, but enthusiasm was a bit tempered last week in light of continually difficult economic conditions. Market observers still count high yield to be on the road to recovery, but the bumps of the economic...

The Art of Looking Up, But Not Too Far.
May 19, 2008... I seem to find myself forever in search of the "happy medium." You name it-politics, religion, food. Extremes have come to define our culture, in all its obese, bulimic glory. And the financial markets, which see elation one day and misery...

Investors Skeptical of Newsday Deal.
May 19, 2008... Investors had mixed reactions to the Tribune Company's decision to sell the Long Island newspaper Newsday to Cablevision for $650 million. On one hand, Tribune's outstanding debt is more than $10 billion, so any step to reduce the debt is...

Barclays Nabs Deutsche Bank High Yield Trader.
May 19, 2008... A former co-head of high yield trading at Deutsche Bank has joined Barclays Global Investors to head up the firm's active U.S. fixed income trading desk. In a newly created position, Chip Stevens, who has extensive experience in the credit and...

Nortek Puts New Wrinkle In Deal, Prices $750M.
May 19, 2008... The high yield primary market's recovery was illustrated last week by Nortek's successful pricing of $750 million in high yield bonds. But while the deal may seem to offer a glimmer of hope to the troubled home-building sector, the company is...

Cautious HY Recovery Keeps Rolling.
May 19, 2008... Despite more sour economic data, the credit markets appear to be holding steady on their way to recovery. Investors last week continued to proceed with caution as new issues on the primary market helped spread optimism. "Spreads have...

Mergers Of HY And Loan Groups To Continue.
May 19, 2008... Just like some marriages are meant to last and will survive the tests of time, the union of high yield bond and leveraged loan trading groups, a trend which began a few years ago, will likely continue into the foreseeable future, market...

Issuers Forced To Amend Covenants, Pay Fees.
May 19, 2008... Companies that have debt maturing in the next year, especially those affected by the rising cost of oil, could be forced to offer lenders hefty amendments to waive certain covenant agreements. UAL, the parent company of United Airlines,...

Despised Dividend Deals Not So Dangerous.
May 26, 2008... Private equity firms have borne plenty of criticism from the investment community for carrying out dividend-paying leveraged recapitalizations of portfolio companies, but a new analysis of LBO bond and loan issuances indicates that these...

ResCap May Need A Little Help From Its Friends.
May 26, 2008... A couple of weeks ago, I wrote a story about Residential Capital's bond redemption, which sources said bondholders had little choice but to approve. Now the company says it has enough support from bondholders to go ahead with the offer to...

Firmer Secondary, Less Overhang Spur Europe.
May 26, 2008... Some say it's the sunshine, and with the fabulous weather Europe has been enjoying, one could hardly argue. Whatever the reason is, the European leveraged loan market is moving, and though many claim they are still waiting for the next...

Canadian Court Blocks Ginormous BCE Buyout.
May 26, 2008... A Canadian Court last week may have delivered a fatal blow to the buyout of Canadian telecommunications company BCE, which could have been destined for a U.S. court. The Quebec Court of Appeals prevented the buyout, agreeing with bondholders...

PIK Panic Not Gripping the Untoggled.(payment-in-kind)(Report)
May 26, 2008... Using the toggle feature of a PIK toggle tranche does appear to hurt, unsurprisingly, a company's other more senior tranches on secondary trading. And a look at a variety of companies with yet-to-be toggled PIKs shows that these tranches tend...

Economic Worries Persist For Investors.
May 26, 2008... The secondary market continued to show signs both of an improving credit market and the general volatility of the U.S. economy. Investors were glad to see new issuance move and were more willing to take on risk, but economic news continued to...

Auto Supplier Visteon Makes Hybrid Tender Offer.
May 26, 2008... Automobile parts supplier Visteon is making bondholders an offer they probably won't refuse. The Van Buren Township, Mich.-based company approached bondholders last week with a tender offer for bonds maturing in 2010. This tender offer is...