High Yield Report articles from October 2005

High Yield Report archives from October 2005

US Company News: Possible Delphi Filing Sparks Sell-Off.
October 3, 2005... The market is pricing in a 50% chance that Delphi Corp. will file for Chapter 11, which could cause a domino effect throughout the already creaky high yield automotive parts sector. The hardest hit initially would obviously be Delphi's...

Market View: HY Investors Clinch Their Purse Strings...For Now.
October 3, 2005... Due to fears of instability in the market, the final two weeks of the third quarter proved to be lackluster ones for US primary high yield issuance. Investors opted to pass on several deals and hold onto their cash instead, causing several...

Hedge Funds: SEC Reg May Cause HFs To Outsource More.
October 3, 2005... With the Securities and Exchange Commission (SEC) poised to sink its hooks into hedge funds - beginning in February 2006 when all hedge funds will be required to register with the SEC - such firms may start outsourcing labor more frequently to...

US Company News: Shaky HY Market Prompts Neiman To Tweak LBO Deal.(Neiman Marcus Group Inc.)
October 3, 2005... Bargain shoppers tend to steer clear of The Neiman Marcus Group's pricey merchandise, but the high-end retailer apparently can spot a good deal when it sees one. Last week, Dallas-based Neiman opted to take advantage of the red-hot loan market...

Events: Deutsche Bank Confab Sees Strong Turnout.(Deutsche Bank's annual global high yield conference )(Brief Article)
October 3, 2005... Amidst the sweltering Arizona heat, over 1,300 high yield market participants attended Deutsche Bank's annual global high yield conference at Scottsdale's The Phoenician hotel last week (on September 28 and September 29). The event included...

Profile - ABN Amro Asset Management: Offering A Pure Corporate HY Product.(high yield bond fund)
October 3, 2005... Chris Brils, head of European high yield for ABN Amro Asset Management and co-portfolio manager of the 650 million ABN Amro High Yield Bond Fund, says his company's approach to investing in high yield relies on three key factors: Maintaining a...

AMG Data Services.(Brief Article)
October 3, 2005... For the fourth straight week in a row, investor dollars flowed out of high yield mutual funds last week. For the week ended last Wednesday, high yield outflows totaled $1.3 billion, according to AMG Data Services. Outflows were reported by 273...

Gainers & Losers: Northwest/Calpine.(Northwest Airlines Corp., American Express Co. and Calpine Corp.)(Brief Article)
October 3, 2005... Topping the gainers list last week was Northwest Airlines Corp., which, now in bankruptcy, is moving to deal with some of its issues. Northwest is suing American Express Company for $64.3 million, a sum that it claims the financial services...

Market Buzz.(Threadneedle Investments appointed Roman Gaiser )
October 3, 2005... UK fund manager Threadneedle Investments' high yield bond team is now whole again, following the hiring of Roman Gaiser to manage the firm's European high yield bond fund and various institutional mandates. Gaiser will join other relatively new...

US Company News: Pulled Deals Unnerve Investors.(School Specialty Inc., Pregis Corp.)
October 10, 2005... The strange event of two high yield bond deals - for School Specialty and Pregis Corp. - being pulled just after pricing had investors unnerved last week. "I don't remember ever in the last 15 years, seeing two deals pulled right after they...

Distressed Debt: Bankruptcy Reform: Bad News For Distressed Bonds?
October 10, 2005... Some distressed debt players may be in for a rude awakening following the commencement of the Bankruptcy Abuse Prevention and Consumer Protection Act (Bankruptcy Reform Act) on October 17. That's because not all distressed market constituents...

Market View: Fund Investors Are Fleeing High Yield.
October 10, 2005... This year's fund flow data - as represented by AMG Data Services - shows high yield mutual funds becoming increasingly out of vogue, and not nearly as favorable as their equity fund or emerging market debt fund counterparts. Funds investing in...

US League Tables: Commercial Banks Dominate Top US HY Spots.(high yield league table rankings )
October 10, 2005... It appears that the US commercial banks retained their lead in the US dollar-denominated high yield league table rankings through the third quarter 2005, according to Thomson Financial. After being ousted by Citigroup for the number one slot in...

European League Tables: Euro HY Ends Q3 On Muted Note, But More Issuance Ahead.(high yield bond market)
October 10, 2005... The high yield bond market in Europe ended the third quarter on a muted note, after a quiet summer during which many investors took a step back from the market to refocus on basic fundamentals, and issuance came to a standstill. European...

AMG Data Services.
October 10, 2005... High yield mutual funds reported outflows of $69 million for the week ended last Wednesday, according to AMG Data Services, making it the fourth consecutive week of outflows from high yield funds. (c) 2005 High Yield Report and SourceMedia,...

Gainers & Losers: Six Flags/Adelphia.(Calpine Corp. and Adelphia Communications Corp.)(Brief Article)
October 10, 2005... Calpine Corp. was on the gainers list last week after managing to float $300 million in preferred stock to aid in liquidity. Calpine is still in a dispute with trustee Bank of New York over access to $395 million in proceeds from asset sales....

Market Buzz: Restructuring Pros Repko and Ying Join Evercore.(Bill Repko and David Ying joined in Evercore Partners Inc.)
October 10, 2005... Bill Repko and David Ying have both joined Evercore Partners as senior managing directors and co-heads of the firm's restructuring practice. Most recently, Repko was the chairman and head of restructuring at JPMorgan, while Ying most recently...

US Company News: Refco Bonds Come Tumbling Down.(Refco Group Ltd.)
October 17, 2005... Following the news of a major accounting fraud at Refco, secondary trading levels for the company's 9% notes due 2012 came tumbling down throughout last week. By midday last Wednesday, Refco's bonds had plummeted to trade at 78 points,...

Market View: Market Players Ponder GM's Future.
October 17, 2005... Buzz surrounding a Ba2/BB- rated company does not typically involve the subject of bankruptcy. But there is nothing typical about General Motors Corp. (GM) - a debt market giant that plunged $284 billion of debt into the speculative grade bond...

Distressed Debt: Ross: Auto Parts Resemble '02 Steel Sector.
October 17, 2005... The distressed auto parts supplier industry will not likely be a hotbed for quick investment returns, according to Wilbur Ross of WL Ross & Company, who delivered a keynote address at Financial Research Associates' Distressed Debt Summit 2005...

Secondary Trading: Ch. 11 Filing Drives Delphi Bank Debt Up, Bonds Down.(Chapter 11 bankruptcy)
October 17, 2005... Delphi Corp.'s bankruptcy filing certainly jolted the markets last week, as the company joined the growing list of automotive suppliers to file for bankruptcy this year. While its bondholders and shareholders started selling off their exposure...

Europe: Euro Second Liens Are Still On The Rise.(lien loans)(Brief Article)
October 17, 2005... Europe's appetite for second lien loans is still growing, according to Fitch Ratings. In a report issued last week, Fitch reported that the volume of Fitch-rated European second lien loans was over $2.1 billion for the third quarter, a 16%...

AMG Data Services.(high yield mutual funds)(Brief Article)
October 17, 2005... High yield mutual funds reported $406 million in outflows for the week ended last Wednesday, according to AMG Data Services. It is the fifth consecutive week of outflows from junk bond funds, bringing the year-to-date total just shy of $10...

Gainers & Losers: Bally/Dana Corp.(Bally Total Fitness Holding Corp., bonds)(Brief Article)
October 17, 2005... The gainers list last week included Bally Total Fitness Holding Corp. Its bonds rose in trading following its decision to sell its high-end club division for $45 million in cash. Both Crunch Fitness and Gorilla Sports will change hands, going...

Market Buzz Data.(CIM High Yield Securities holds annual shareholder meeting)(Credit Suisse Asset Management Inc. appoints four new credit analysts)
October 17, 2005... Credit Suisse Asset Management (CSAM) announced last Wednesday that it has appointed four new credit analysts to its US fixed income team. Annelise Eschmann and Amy Brown joined CSAM as directors, while Brian Reid and Anuj Gulanti joined as...

Restructuring: Evercore's Repko, Ying Combine Expertise.(Bill Repko, David Ying, Evercore Partners Inc.)
October 24, 2005... Bill Repko, perhaps the best-known name in the corporate restructuring business, became a part-timer at JPMorgan, his employer of 32 years, this past spring in order to spend more time with his family. The part-time gig just didn't work out in...

Europe: Euro HY: Finally A Viable Asset Class?(high yield)
October 24, 2005... Despite what may be described as a long infancy, the European high yield market has now matured to what some consider a viable, stand-alone asset class. Five years ago, a given investor dedicated to European high yield would likely have...

US Company News: GMAC Sale May Have Benefits, Drawbacks.(General Motors Acceptance Corp.)
October 24, 2005... General Motors Acceptance Corp.'s (GMAC) bonds rallied 15 to 20 points last week on news of the subsidiary's potential liberation from its struggling parent company General Motors Corp. (GM). Meanwhile, GM's bonds climbed a few points early in...

US Company News: MacKay Shields Offloads Adelphia Bonds.(Adelphia Communications Corp., MacKay-Shields Financial Corp.)
October 24, 2005... One of Adelphia Communications Corp.'s creditors has resigned from the bankrupt cable company's committee of unsecured lenders and sold more than $300 million in bonds. A fixed income executive familiar with the moves said the creditor, New...

Credit: North American Credit Looks The Bleakest.(Brief Article)
October 24, 2005... Last week, Moody's Investors Service reported that on a global scale, credit quality is on the rise. In an October 17 report, Moody's said that in the third quarter 2005, the number of upgrades continued to outpace the number of downgrades...

Second Lien Loan Spotlight: The Second Lien Loan Market - Explosive And Bifurcated.
October 24, 2005... By Colin P. Cross, managing director - originations, Back Bay Capital Funding LLC The second lien loan market is once again expected to have a record year in 2005, after volume grew from $3.2 billion in 2003 to over $12 billion in 2004....

AMG Data Services.
October 24, 2005... High yield mutual funds reported $255 million in outflows for the week ended last Wednesday, according to AMG Data Services. (c) 2005 High Yield Report and SourceMedia, Inc. All Rights Reserved. http://www.highyieldreport.com...

Gainers & Losers: GMAC/Refco.(General Motors Acceptance Corp.)(Brief Article)
October 24, 2005... The dominant gainers last week were the bonds of General Motors Acceptance Corp. (GMAC). In addition to the news that General Motors Corp. (GM) would seek to sell a controlling stake in GMAC to a strategic buyer, GM also struck a needed deal...

Market Buzz.(two corporate bond indices launched)
October 24, 2005... The National Association of Securities Dealers (NASD) and Bloomberg are jointly launching two corporate bond indices, the NASD announced last week. The new indices comprise the NASD-Bloomberg Active Investment Grade US Corporate Bond Index and...

US Company News.
October 24, 2005... Targa Resources joined the growing list of issuers that have decided to downsize their bond offering and increase their bank debt in recent weeks. Lead underwriter Credit Suisse First Boston upsized the Houston-based midstream natural gas...

US Company News: Outlook Mixed For Cablevision Divi Deal.
October 31, 2005... One has to credit the Dolan family, controller of Cablevision Systems Corp., for its persistence in trying to use the debt capital markets to fund deals, sources say. However, now that the leveraged buyout (LBO) idea is shelved, and a possible...

US Company News: A Paltry Showing For October HY Issuance.
October 31, 2005... L ast Thursday's junk bond from Colorado Interstate Gas Company arrived under the radar and just in the nick of time to save the US high yield market from the taint of ending October with less than $2 billion in total new issuance. As of press...

Hedge Funds: HFs May Not Be A Savior In Next Downturn.
October 31, 2005... Since the last major credit downturn of 2001 to 2002, many high yield players have recognized that hedge funds played a critical role during that period, as they provided liquidity and diffused risk for virtually every segment of the credit...

Leveraged Loans: Market Urged To Heed Global Crossing Opinion.
October 31, 2005... Market players who buy and sell legal claims in the secondary loan market "cannot afford to ignore" a May court opinion that places the onus on JPMorgan to conduct discovery of the original holders of a loan in its lawsuit against former...

Mezzanine: Record Euro Mezz Volume In 2005.
October 31, 2005... Despite the distinct rise in second lien issuance for European corporations (HYR, 10/17/05), 2005 is still expected to be a record year for mezzanine debt issuance in Europe, according to Fitch Ratings in its "European High Yield Quarterly"...

European CDOs: Market Value CDOs Pick Up Steam In Europe.(collateralized debt obligation)
October 31, 2005... The market value collateralized debt obligation (CDO), a structure that had virtually disappeared from sight in the European financial marketplace over recent years, has reappeared. Sources say that these vehicles, which now come equipped with...

AMG Data Services.
October 31, 2005... High yield mutual funds reported outflows of $90.5 million in the week ended last Wednesday, according to AMG Data Services. This is the seventh consecutive week of outflows for junk bond funds. (c) 2005 High Yield Report and SourceMedia,...

Gainers & Losers: Radnor/Unisys.(Radnor Holdings Corp.)(Brief Article)
October 31, 2005... Making the gainers list again last week was General Motors Acceptance Corp. (GMAC), as market players are starting to assume a GMAC sale is increasingly likely. Possible buyers from parent company General Motors Corp. (GM) include Bank of...

Market Buzz.(Babson Capital Management)
October 31, 2005... The International Swaps and Derivatives Association (ISDA) announced last week that over 700 adherents have signed up to the ISDA's Novation Protocol, a service that helps facilitate the transfer of an existing trade to a third party (HYR,...