High Yield Report articles from November 2008

High Yield Report archives from November 2008

Credit Markets Bewitched By Endless Wave Of BWICs.(News)
November 3, 2008... Byline: Matthew Sheahan The loan market in October saw a flood of BWICs-bids wanted in competition-as sellers were forced to dispose of holdings quickly due to margin calls and triggers. While BWICs may not maximize value for sellers, they...

BDC To Barclays: Return Collateral Or Else.(News)
November 3, 2008... Byline: Richard Kellerhals Black Diamond Capital Management last week filed a lawsuit in a Manhattan court against Barclays, claiming the London banking giant did not return excess collateral Black Diamond put down as security on a total...

Banks Pull $1.45 Bond Issue For Avaya.(MarketBuzz)
November 3, 2008... Byline: Editorial Staff Underwriters pulled a $1.45 billion bond issue for Avaya from the high yield calendar last week, according to KDP Investment Advisors. The Basking Ridge, N.J.-based telephone and computer software provider withdrew...

NewOak Capital Grows Out Of Market Fissure.(News)(Company overview)
November 3, 2008... Byline: Gabrielle Stein The structured finance markets have not been spared by the deteriorating economic conditions. And firms that are dedicated to structured credit are looking to either shed assets from their deflated portfolios or, in...

Against The Grain: SCM Ups Its HY Bond Exposure.(News)
November 3, 2008... Byline: Matthew Sheahan At a time when many high yield funds are unwinding faster than a ball of yarn in a hurricane, SCM Advisors is actually increasing its exposure to junk bonds. The San Francisco-based firm is betting on a rebound in...

High Yield Market Waits For Stability.(The Secondary)
November 3, 2008... Byline: Matthew Sheahan Despite the initial implementation of the U.S. government's bailout efforts, and the Federal Reserve cutting interest rates down to 1% last week, the high yield market is still taking shelter from the storm. ...

Market: Time To Pull Mark-To-Market Triggers.(News)
November 3, 2008... Byline: Richard Kellerhals As billions in high yield loan and bond portfolios liquidate, some market participants say the industry should do away with mark-to-market triggers-the root cause of the forced selling-in debt vehicles like CLOs,...

Bankers' Caution Is A Boon For Asset-Based Lenders.
November 10, 2008... Byline: Marissa Fait With the credit crisis persisting and the economy floundering in its home state of Michigan, the $150 million-asset Clarkston State Bank is wary of booking new loans, even for longtime customers. But it also wants...

Why Financial Markets Shouldn't Fear Obama.
November 10, 2008... Byline: Rhenriquez I cannot tell a lie-I did my fair share of dancing in the streets last Tuesday night. Something, along with my general tendency toward optimism, that I should disclose before I say what I have to say here. I know...

More Banks Eye Hybrid ABL Structures.
November 10, 2008... Byline: Richard Kellerhals A growing number of banks are providing hybrid facilities that combine asset-based loans (ABL) with special purpose vehicles (SPV). These facilities, which multinational European companies have been using for...

Companies Thirst For Liquidity As Defaults Loom.
November 10, 2008... Byline: Matthew Sheahan As the economy continues to slump, speculative-grade companies find themselves pressed by liquidity concerns more acute than those of past credit cycles. As covenants tighten and debt comes closer to maturing,...

Investment Grade Spreads Reach Historic Wides.
November 10, 2008... Byline: Editorial Staff Yield premiums for debt issued by investment grade firms hit historic wides last week, yet another sign that investors are worried about how corporations will weather the economic downturn and tight credit...

Investors Ready To Tap Precision Drilling Debt?
November 10, 2008... Byline: Richard Kellerhals After more than a month-long drought, with no new leveraged loan deals over $100 million and only one new high yield bond issue, investors finally have a deal to act on-if they are willing. A bank consortium last...

HY Market Still Quiet And Awaiting Relief.
November 10, 2008... Byline: Matthew Sheahan The high yield markets last week watched for market reaction to the Fed and the Treasury department's continued efforts to bail out the financial system, and for reaction to the election of Sen. Barack Obama as U.S....

Q&A: Watch Hill's Knowlton Bullish On Boutiques.(Q&A)
November 17, 2008... Byline: Matthew Sheahan David Knowlton co-founded boutique investment bank Watch Hill Partners in 2003, after years managing relationships with financial sponsors and their portfolio companies as co-head of First Union Securities'...

Bankruptcy's New Dance-Hard To Get DIPped, Find Exit.(News)
November 17, 2008... Byline: Richard Kellerhals As if a company on the brink of bankruptcy didn't have enough to worry about, constrained bank balance sheets and reduced risk tolerance are making it increasingly difficult for troubled companies to obtain...

Paulson Provides A Prozac Moment.(Editor's Note)
November 17, 2008... Byline: Tom Granahan I just might be starting to buy into all of this depression talk. Not a Depression, of course. With apologies to George Soros and John Whitehead, that idea remains ludicrous. I'm talking just plain depression. It's...

Strapped High Yield Issuers Tap Their PIKs.(Market Buzz)
November 17, 2008... Byline: Editorial Staff Several corporations, many of them private equity-backed, have triggered payment-in-kind (PIK) options in the last 60 days to meet their interest payments, according to a new report from Moody's Investors Service....

Paulson, Reports Shake Up Markets.(The Secondary)
November 17, 2008... Byline: Carol J. Clouse (AS OF 11/13/08) - TOP GAINERS - Bond Price Change YieldSpread 11/13/08 11/06/08 11/13/08 11/06/08 11/13/08 Hilton Hotels Corporation (USD) 7.625% 12/1/2012 79.25 55 24.25 14.58% 26.18% 1276.52 ...

ABS Market Greets Treasury Plan With Skepticism.(News)
November 17, 2008... Byline: Gabrille Stein With economic conditions worsening, the U.S. government has stepped up its bailout efforts-doling out $250 billion allotted under the Emergency Economic Stabilization Act (EESA) for equity investments in financial...

RBC To Shop Aquilex Facility.(News)
November 24, 2008... Byline: Richard Kellerhals In the coming weeks, the Royal Bank of Canada will market a $357 million credit facility for Atlanta-based Aquilex Holdings, sources said. The breakdown of the debt could not be determined, and calls to...

Euro Refunding Needs Rise With Volatility.(News)
November 24, 2008... Byline: Rhenriquez European debt maturities and defaults are set to rise along with those in the U.S. And while volatility in the marketplace will make both the U.S. and Europe challenging environments, Europe faces a particularly acute...

Harrah's Offers Bondholders Tough Exchange.(News)
November 24, 2008... Byline: Matthew Sheahan The powers that used to run casinos were once Godfather types who made offers their business partners couldn't refuse. Today, casino companies are making debt exchange offers that bondholders can't really refuse,...

BCE Buyout Deal Set To Close On Time.(Market Buzz)(Company overview)
November 24, 2008... Byline: Editorial Staff The $50 billion takeover of Bell Canada appears to be on track to close by Dec. 11, according to The New York Times. This is good news for the leveraged finance markets, which had feared the largest LBO in history...

HY Market Rolls With Economic Punches.(The Secondary)
November 24, 2008... Byline: Matthew Sheahan The high yield market has become numb to bad news. Investors are riding out the storm but keeping a watchful eye out for signs it's time to start buying debt once again. The overall mood of the market continues...

Citi Buying SIV Assets, Slashing Jobs Citi Buying SIV Assets, Slashing Jobs.(Week on the Street)
November 24, 2008... Byline: Editorial Staff The cleanup at Citigroup continues. Last Wednesday, Citi said it is buying up the last $17.4 billion of assets in its structured investment vehicles. Citi dubbed the transaction "nearly cashless," and said...