High Yield Report articles from October 2006

High Yield Report archives from October 2006

Investors: Hedge Funds Play Leading Role.
October 2, 2006... With hedge funds becoming an investor base that some say is essentially keeping the high-yield bond market liquid, investors and analysts are wondering just how long hedge funds' benevolent reign will extend, and what the long-term implications...

CDOs: Carlyle Closes Ninth High Yield Fund.(collateralized debt obligations, Carlyle Group L.P.)
October 2, 2006... Still on a roll in the world of CLO issuance, private equity giant The Carlyle Group announced the close of its ninth US high yield fund last week, Carlyle High Yield Partners IX (CHYP IX). "This fund was very well received," said Linda...

Deals: Philips' Mega Deal Raises Questions In US.
October 2, 2006... Despite initial indications to the contrary, the colossal EURO4.5 billion euro NXP Management bond financing for sponsors KKR and Silver Lake Partners' buyout of Philips' semiconductor business (see HYR, 8/21/06) presented to jam-packed...

Derivatives: ISDA Broadens Use of Cash Settlement Protocol.(International Swaps and Derivatives Association)
October 2, 2006... The International Swaps and Derivatives Association last week unveiled a protocol that will allow cash settlement across a broad spectrum of credit derivative products - including single name index tranches and plain vanilla credit derivatives....

Ratings - Fitch: CRE CDO Upgrades To Slow.
October 2, 2006... Driven by investor demand and the availability of new structures, commercial real estate CDO issuance has reached nearly $30 billion so far this year, compared to only $14.5 billion in 2005 and $6.4 billion in 2004. While the sector has...

Mezzanine/news: Apollo Raises Mezz Fund.(Apollo Management L.P. to launch mezzanine fund )(Brief article)
October 2, 2006... Private equity firm Apollo Management will reportedly launch a mezzanine fund that focuses on the European market. While Apollo could not be contacted by press time, several reports indicated that founder Leon Black made the announcement at a...

Gainers & Losers: Berry Plastics/ Owens Corning.
October 2, 2006... Berry Plastics topped the gainers list last week following the completion of its previously announced tender offer and consent solicitation for its outstanding $335 million aggregate principal amount of 10.75% senior subordinated notes due...

Market Buzz: Credit Suisse Hires Asia Debt Capital Markets Co-Heads.(Mike Joo and Ping Tan )
October 2, 2006... Credit Suisse has appointed Mike Joo and Ping Tan as its co-heads of debt capital markets for Asia excluding Japan. Joo will be based in Hong Kong and focus on the high-grade and sovereign business, while Tan, based in Singapore, will focus on...

CONVERTIBLES: Giordano Takes Old-School Approach to Converts.(J. Giordano Securities Group )
October 2, 2006... As most Wall Street shops trimmed their convertible bond research teams in recent years, slashing jobs and producing sparse, quantitative reports, boutique investment bank J. Giordano Securities Group has done the opposite. It has continued to...

People: Maxim Rebounds With New Team.(Maxim Group L.L.C appointed Rocco Capoccia, Brad Young and Doug Jones )
October 2, 2006... Armed with a new president and chief investment officer, Maxim Group is preparing to bring its first CDO to the market following the departure several months ago of CDO group head Wing Chau. Maxim had shelved its CDO group, Maxim Advisory,...

CDOs: Merrill leads CDO sector.(Merrill Lynch dominated collateralized debt obligation underwriting in third quarter)
October 9, 2006... Merrill Lynch dominated CDO underwriting in the third quarter, managing more than $14.7 billion worth of deals and increasing its market share to 18.2%. In the first three quarters of this year, the investment bank brought a total of $34.6...

LEAGUE TABLES: No Big Speed Bumps for Global High Yield.
October 9, 2006... Global high yield cruised through the third quarter, maintaining a pace that is proving to be stronger than some expected. Issuance was up for the first nine months of the year, with just over $93 billion in U.S. dollar denominated deals, or a...

Latin Deals: Argentine Deal Marks Return of the Prodigal Asset.
October 9, 2006... An Argentine province is doing its part to take the country further away from the debilitating crisis that peaked in 2002. Energy rich Neuquen plans to price this Wednesday, a $125 million, eight-year transaction backed by oil royalties, the...

CDO NEWS: Mixed Macroeconomic Fundamentals Keep Carry Trades Popular.(Collateralized debt obligations)
October 9, 2006... Widespread talk of a meltdown in the U.S. housing market - and the effects it might have on the structured finance market through the RMBS sector - have not diminished the popularity of carry trades in the cash CDO market. Indeed, the power...

Gainers & Losers: OwensCorning/InSight Health.(Armstrong World Industries Inc, InSight Health Services Corp)(Brief article)
October 9, 2006... Owens Corning Fiberglass Corporation landed a spot on the gainers list last week as it continues to move forward with its plan to emerge from bankruptcy by the end of the month. The reorganization, which has already been approved by one judge...

Market Buzz: Gibson, Dunn & Crutcher expands Global Finance Practice Group.(AMVESCAP PLC completes acquisition of WL Ross & Co. LLC)(Frank Viola joins Cohen & Company)
October 9, 2006... Gibson, Dunn & Crutcher LLP announced last week the addition of Robert Cunningham to its New York office. Cunningham, formerly a partner and co-chair of Jones Day's global lending and structured finance practice, joins the firm as a partner and...

Europe: Low Expectations Despite High Times.(finance market)
October 16, 2006... It's hard to believe at a time when the European leveraged finance market is going great guns, but a large number of market participants from all walks of life believe that insolvencies and restructurings in the corporate space are likely to...

DEAL NEWS: Private Equity Duo Takes A Gamble On Harrah's.
October 16, 2006... With the current string of megadeals in the pipeline, including a proposed $22 million buyout of Kinder Morgan and a $33 million acquisition transaction for HCA Corp., it seems the surge to get larger deals done is only just the beginning....

EUROPEAN CDOs: Basel II Could Change European CDO Landscape.(collateralized debt obligations)
October 16, 2006... As European banks and the broader financial markets situate themselves for the impending implications of Basel II, market participants are noting - and speculating on - a number of changes to come within the growing CDO sector. European...

Second Liens Continue To Set New Records.
October 16, 2006... by Mary D'Souza, Senior Vice President, GE Capital Markets, Inc. As companies increasingly seek versatility in their financing solutions, they are more than ever choosing second lien loans. Second lien issuance through third quarter...

Gainers & Losers: Adelphia/GM.(Adelphia Communications Corp., Dana Corp., General Motors Corp.)(Brief article)
October 16, 2006... Adelphia Communications Corp. topped the gainers list last week on the back of an announcement that the company has filed a further modified draft of its Fifth Amended Joint Chapter 11 plan of reorganization. Adelphia is seeking to extend the...

Market Buzz: International Assets Expands Its Debt Capital Markets Business.(International Assets Holding Corp. appointed Peter Wallin )
October 16, 2006... International Assets Holding Corp. announced last week that it has expanded its debt capital markets business with the recruitment of Peter Wallin and the establishment of a Miami office. Wallin has worked in the Latin American capital markets...

COMPANY NEWS: Sea Containers Bond Holders Without a Paddle.
October 23, 2006... Sea Containers Ltd., the marine shipping container leasing company that filed for bankruptcy protection last week, is apparently struggling with an inefficient capital structure and $467 million owed to 20 of its largest creditors. The...

DEALS - High Yield Market Wrap Up: Back In The Saddle Again.
October 23, 2006... After an odd week during which no new issues priced in the U.S. high yield bond market, last week's surge of new paper in the $3 billion range made up for lost time. Traders and high yield market participants said the deals were all generally...

Q&A: TCW Predicts Another Record Year for CDOs.(collateralized debt obligations, Louis Lucido, Trust Company of the West)(Interview)
October 23, 2006... The following is an exclusive Q and A with Trust Company of the West's credit mortgage group by BLR sister publication Asset Securitization Report. Led by general managing director Louis Lucido and charged with managing more than $26 billion in...

Market Buzz: RBS Names New Head of Asia-Pacific Debt Syndicate.(Royal Bank of Scotland appointed Paul McWilliam )
October 23, 2006... Royal Bank of Scotland has chosen Paul McWilliam to lead its Asia-Pacific debt syndicate, in an effort to build its primary bond business in the region, according to recent reports. McWilliam joins RBS from McWilliam Vega, where he was a...

News: Argentina's Neuquen Prices Cross-border Bonds.
October 23, 2006... Neuquen broke through a wall recently, when the Argentine province priced the country's first cross-border bond backed by onshore assets in the aftermath of the 2002 crisis. But judging by the stripe of investor that bought in, and the barriers...

COMMENTARY: Security Spurs Popularity Of Leveraged Loans.
October 23, 2006... By Michael Murphy, senior member of AlixPartners Financial Advisory Services The market today is awash in liquidity. Even though the supply of funds has narrowed spreads and driven down lender yields, the outlook for new issuances remains...

Correction:.(Correction notice)
October 23, 2006... In the Oct. 16 issue of High Yield Report, information from David Lovett, a principal in AlixPartners' London office, was incorrect. It should have said that AlixPartners works for companies going through non-discretionary change. We regret the...

Gainers & Losers: Foamex/Ford.(Brief article)
October 23, 2006... Foamex LP settled at the top of the gainers list last week, following an announcement that it has entered into an equity commitment agreement for a $150 million rights offering to existing common and preferred shareholders. Separately, Foamex...

RATINGs: Derivative Fitch Adds Dimension.
October 30, 2006... Fitch Ratings recently packaged its global CDO and structured credit services into a stand-alone company called Derivative Fitch - a move that is expected to allow the agency's derivatives ratings much needed breathing room from the...

Market: The Rising Tide Of Leverage.(leveraged buyouts)
October 30, 2006... It seems that part and parcel with the stunning growth of new issues and a vibrant, liquid secondary trading market this year, there has been an increase in issuing companies piling on as much debt as possible. Michaels Stores priced a...

Feature: A New Order For Junk.
October 30, 2006... First of a two-part series Most days, John Ong, global head of high yield capital markets at BNP Paribas, deals with unrelentingly positive news. "It's getting a little boring," he says, "going to weekly market meetings and talking about...

Market Buzz: Merrill Lynch to Acquire Petrie Parkman & Co.(Babson Capital Management LLC appoints F. Mark Turner )(Cowen and Co. hires Robert Rowden)
October 30, 2006... Merrill Lynch announced last week an agreement to acquire Petrie Parkman & Co., the leading investment bank specializing in mergers and acquisitions, asset and private company divestitures, corporate finance, and equity research for the North...

Gainers & Losers: GMAC/Abitibi.
October 30, 2006... General Motors Acceptance Corp.'s bonds saw significant gains last week, as news broke that General Motors posted a third quarter operating profit that far exceeded expectations. The company earned $529 million, or 93 cents a share excluding...