High Yield Report articles from October 2007

High Yield Report archives from October 2007

The Secondary: Stronger Market Still Sees Losses.
October 1, 2007... Trading on the secondary high yield market was stronger last week than in weeks past, but concerns over the economy and individual company performances saw losers move more than gainers. The week began with a one-two punch of negative...

Legal Focus; LBO Firms And Banks Consider Deal-Breaking MAC' Clauses.
October 1, 2007... A protective measure that sat in the background during the LBO bonanza and the ensuing debt investment spree has now come to the forefront as the soured credit markets have stalled the LBO machine. Leveraged buyouts do not have to proceed...

Europe: European Loans Could Seek High Yield Bond Help.
October 1, 2007... As in the U.S., investment banks in Europe are busy cooking up solutions to rid themselves of the estimated E80 billion leveraged loan overhang, which has led some to believe the high yield bond market might be worth turning to. "Unlike...

EDITOR's NOTE: The Glass Is Half Full, Just Don't Spill The Milk.
October 1, 2007... You know the story. To escape from the island of Crete and angry King Minos, Daedalus built wings for himself and his son Icarus out of feathers and wax. Daedalus warned Icarus not to fly too close to the sun and melt his wings. But Icarus, in...

Market Buzz: Standard Pacific Issues Convertible Notes.
October 1, 2007... On Sept. 24, home builder Standard Pacific Corp. said it planned to issue $100 million to $115 million in convertible senior subordinated notes due 2012, earmarking the proceeds for a partial reduction of its $384 million revolver. In an...

Correction:.(Correction notice)
October 1, 2007... In the Sept. 24 issue of High Yield Report, an article about new debt funds misstated the location of Audax Group. The firm is based in Boston and New York.

The Primary; Market Finds Investors, Still Awaits Big Issues.
October 1, 2007... Don't call it a comeback, but new issues pricing on the high yield primary last week indicated that the market is continuing to loosen. Some new bonds even priced with single-digit yields. But the market is not back to the good old days, as...

News: MV CDOs: Spread Widening Forces Liquidations.
October 1, 2007... As if the structured finance CDO market has not been dragged through the mud already, market-value CDOs appear to be the latest investment vehicle wounded by the lack of liquidity in the mortgage sector. With forced liquidations driving...

NEWS: Lev Finance Bankers May Bolt To Private Equity.
October 1, 2007... Wall Street's banking houses have enough trouble at the moment digesting the staggering debt loads of several multibillion-dollar buyouts, but the bulge-bracket banks face another less grave, though serious, threat in leveraged finance from the...

The Secondary: Market Weathers More Bad Economic Data.
October 8, 2007... If last weeks economic indicators are any clue, there is a bad moon on the rise over the bond market. Secondary trading did not fluctuate much in either direction last week, as buyers awaited more data, due Friday, that might influence how the...

U.S. League Tables: Q3 Didn't Rock, But Will Q4 Stage a Comeback?
October 8, 2007... In Q3, the exuberant high yield market followed the advice of Neil Young and decided to burn out rather than fade away. This year saw two quarters of continuous activity followed by a credit meltdown that abruptly cut off the spigot of new...

Euro league tables: European Leveraged Finance Reinvents Itself.
October 8, 2007... Despite the extremely rough third quarter a moment in European leveraged finance history no one will soon forget market participants have embarked upon the final quarter of 2007 with optimism and a decent amount of good cheer. No one is...

EDITOR's NOTE: Back In Vogue: The Term Loan A?
October 8, 2007... While the large investment banks find themselves laden with leveraged loans they had intended to syndicate, one banking analyst predicts well see more of the originate-and-hold pattern. And not the forced variety. Punk, Ziegel & Co.s...

Market Buzz: Morgan Stanley Hires For PE Amid Cuts.
October 8, 2007... Amid a plan to cut 600 jobs following a decline in mortgage-related revenue, Morgan Stanley is hiring to rebuild its private equity team three years after it spun off its buyout division. Gary Matthews has migrated over to the firm, after years...

Correction:.(Correction notice)
October 8, 2007... The secondary market wrap in the Oct. 1 issue of High Yield Report misstated the type of Ziff Davis Media bonds that were among the largest losers in secondary trading. The companys compounding notes due 2009 fell 16 points to land at 33.875...

Citi Tops CDO Rankings Despite Losses.
October 8, 2007... Citigroup Global Markets managed to claim the top position among U.S. ABS CDO managers, according to Thomson Financial, despite a recent announcement that the bank is facing losses on $1.3 billion in pretax subprime MBS collateral, CDO...

The Primary HY: Second Helpings And Soap Operas.
October 8, 2007... The primary market saw some triumphs last week, with two companies coming back to the market to add on to funds already raised and a large LBO-backed deal pricing with strong demand. Also, a new development in the Sallie Mae buyout showed that...

News: Bankruptcy Exit Money Gets Pricey.
October 8, 2007... Borrowing costs have gone up in all segments of the credit markets, so it should come as no surprise that getting an exit loan for a bankrupt business has gotten pricier and more challenging. Also, restructuring specialists believe that the...

The Secondary: Not-So-Bad News Bears Active In HY Trading.(High Yield)
October 15, 2007... All eyes were on the Fed at the beginning of the shortened trading week last week. The bond market came back from its Columbus Day holiday eyeing the Fed for clues as to the chance of a further rate cut. The minutes of the Sept. 18 Federal...

STRATEGY: Investment Banks Rev Up Drive Into Private Equity.
October 15, 2007... When the well runs dry, as they say, the time has come to dig another. And investment banks, which have suffered significant losses in fixed income, seem to have found a source to tap: private equity. The banks' presence in private equity...

Q&A: RBS Makes Push Into European Junk.
October 15, 2007... With deals like Formula One and Vivarte under its belt, Royal Bank of Scotland has been a clear leader in European leveraged lending this year. But even though the bank has enjoyed a great deal of success on the loan side of the business, it...

NEWS: Sallie Mae And Buyout Group Go To Matresses.
October 15, 2007... Market observers last week said Sallie Mae and its would-be private equity buyers have more reasons to go ahead with their proposed buyout deal than to enter a potentially protracted court battle. The two sides disagree over whether or not...

Market Buzz: Survey Says: European Defaults To Increase.(Industry overview)
October 15, 2007... Amid the global credit crunch, European corporations are going to see their liquidity dry up and suffer more debt defaults. So says a new survey of 70 bankers, lawyers, fund managers and other experts by global advisory firm AlixPartners. A...

News: CDO Market Stalls, CLO Spreads Tighten.
October 15, 2007... Liability spreads in the ABS CDO market may continue to push out as issuance remains at a standstill. But with the pickup in new deals in the CLO sector, similar widening appears to have ended with the third quarter. While one CLO analyst...

The Secondary: Economic News Spurs Hope For Rate Cut.
October 22, 2007... The housing market continued to be a house of pain for the economy last week, and the week's economic data made it more likely that the Federal Reserve will cut interest rates on Oct. 31, creating possibly the most heavily anticipated Halloween...

STRATEGY: Rescue Fund Is Good News, But Will It Help Lev Finance?
October 22, 2007... In today's market, $80 billion may buy a lot of commercial paper, but it won't buy you peace of mind. The news that three major investment banks were putting together a fund to provide liquidity for the asset-backed commercial paper market may...

Loans: No Supply Deficit Seen For Loan Market.
October 22, 2007... While analysts at JPMorgan and Citigroup have recently reported that high yield bond investors may be forced to sit on piles of cash as a supply deficit takes hold, it appears the same cannot be said for the leveraged loan market, according to...

EDITOR's NOTE: Bulls In The Spotlight, Bears On The Sidelines.
October 22, 2007... Traveling across the rolling plains of central Spain, or through the desert in the south, they appear over the horizon, and for a quick moment, you'll believe them to be real. Los Toros de Osborne - giant, black, bull-shaped billboards - stand...

Market Buzz: Cov Lite Hits Asia; Movie Gallery Bombs.
October 22, 2007... The vilified cov-lite loan has become a dirty word in the United States after the shakeout in the credit markets this summer, but now a brace of banks is trying to see if such a loan is pure enough to float in Asia and become the first of its...

The Primary: Pricing From LBO Pipeline Comes In Dribbles.
October 22, 2007... The high yield primary market showed signs of returning to normal last week, but the large, LBO-backed issuances that priced had been restructured to fit today's market realities. "The market is coming back a bit, and it looks like,...

The Secondary: Roller-Coaster Times For High Yield Bonds.
October 29, 2007... The high yield market last week saw a mixed bag of news. While the primary market plowed ahead and worked through more LBO debt (see related story, page 4), the economic forecast was bleak following major write-downs from large banks and...

Deal Breaking: Harman Deal Brings Relief, Will Others Make Peace?
October 29, 2007... One LBO deal has cleared out of the pipeline without bloodshed. Harman International Industries reached an agreement with its would-be acquirers that has precluded a potentially protracted legal fight and cleared $5.19 billion out of the...

Trends: A New Road For U.S. Project Finance.(Report)
October 29, 2007... Market observers see the U.S. importing the infrastructure finance strategies commonly used in Europe, Australia and South America faster than foreign TV shows. And investors are tuning in as they see infrastructure finance, or project finance,...

EDITOR's NOTE: HY Parties Hard Again, Even PIKs Welcome.
October 29, 2007... I've been preaching caution for a while now, so I hesitate to jump on the wild hog of overreaction, but the high yield bond primary market does seem to have picked itself up, brushed itself off and put on a brand new party dress. October...

Market Buzz: Lehman Merges CM Under Global Leadership.
October 29, 2007... Two Lehman Brothers executives now have the whole world within their hands as the company continues to build up the global finance machine it launched in 2003. Both the head of its U.S. equity capital markets and the co-head of the U.S. debt...

The Primary: New Issues Make Splash On Primary Market.
October 29, 2007... The high yield primary market was open for business last week and worked through more of the debt overhang that has been a constant presence in the market. All eyes were on TXU, now known as Energy Future Holdings, which set a new record...