High Yield Report articles from September 2007

High Yield Report archives from September 2007

The Secondary: Sluggish Market Makes Some Gains.
September 10, 2007... The end of the summer season offered no respite from the economic troubles that have been the bane of the high yield bond market. Trading continued to be relatively light, and debt investors continued to seek the safe harbor of Treasurys....

Market View: Banks And LBO Firms Chip Away At Debt Overhang.
September 10, 2007... Debt investors know what underwriters did this summer. And bankers are still burning the midnight oil working on how to sell massive amounts of debt without taking too much of a loss. Saddled with debt commitments to private equity sponsors,...

Deal Focus: All Eyes Are On First Data.
September 10, 2007... First Data may be remembered as the Neil Armstrong of the leveraged finance markets. The pricing of the $24 billion financing will be a giant leap for the company but an even greater leap for the world of leveraged finance, which is waiting for...

EDITOR's NOTE: For The Market To Move, Something's Gotta Give.
September 10, 2007... The time has arrived, Labor Day has come and gone, and the leveraged finance markets are looking to get moving again. Investors insist they have money to spend if the price is right, but will bankers be willing to eat some of the fees they've...

Market Buzz: Moody's Reports Pricing Impasse In Credit Markets.
September 10, 2007... The flight to quality in the credit markets has made pricing in the area a difficult issue, and has brought buyers and sellers of risk instruments to an impasse as to the value of structured products, according to a report by Moody's Investors...

NEWS: CDO Market Begins To Shed Weight.
September 10, 2007... After a tumultuous summer in the subprime mortgage market sapped CDO liquidity, market participants are now faced with the challenge of salvaging earnings, which includes trimming down the payroll. Real Estate Investment Trust Luminent...

Commentary: The Perils of the One-Stop Financing Shop.
September 10, 2007... Since the highly leveraged credit markets have severely tightened in response to subprime contagion, and the equity markets have responded with a bungee cord pattern of volatility, being a prognosticator of the deal market has become a bit like...

The SEcondary: Still Driving Under Caution Flag.
September 17, 2007... The secondary market last week was like a lame keg party. All the right ingredients were there: There was plenty of credit available at a discount for buyers to tap, but fewer investors arrived to slake their thirst for buying. "We have a...

Market Overview: Troubled LBO Debt Pipeline Still Awaits First Data Sale.
September 17, 2007... Any plumber will tell you that they rarely find diamonds when they clean clogged pipes. While First Data's debt package is the undisputed harbinger as far as clearing open the credit markets again, other big deals with solid underlying...

Banks: Mid-Market Sees Opportunity, Some See Trouble.
September 17, 2007... Large investment and commercial banks are not alone in being affected by the current climate in the credit markets. But unlike large banks, which find themselves sharing a boat of woe, middle-market banks have not been saddled with billions in...

EDITOR's NOTE: Out With The Old Covenants, In With The Loose.
September 17, 2007... Investors appear to have mixed feelings about covenants; while many kick and scream when covenants on a deal come lite, some say the tests don't really matter all that much. One investor told us back in August that the brouhaha surrounding the...

News: Secondary Loan Market Not So Secondary.
September 17, 2007... The lack of new issuance on the primary leveraged loan market is, logically, driving up trading on the secondary. And now there is data to show how much. Trading settlement house ACBS ClearPar data shows that the number of trades in the...

Market Buzz: Deutsche Bank Co-Heads Jump Ship For HSBC.
September 17, 2007... Deutsche Bank has lost its group head of leveraged finance, Tom Cole, and its head of senior debt capital markets, Dan Toscano, to HSBC. The two left to become co-heads of leveraged and acquisition finance at the U.K. bank. Deutsche has named...

Europe: Euro CLOs Face Tough Time in Latter Half 2007.
September 17, 2007... While even a couple of weeks ago European loan market participants were hoping for their market (which has barely seen a drop in the way of primary issuance over the past month) to get going in September, the word is now that it will take...

The SEcondary: Fed Cut Boosts High Yield Trading.
September 24, 2007... Last week's much-anticipated Federal Reserve action gave a go-ahead signal to bond traders, and the secondary market got moving. The Federal Reserve's Federal Open Market Committee decided to cut benchmark interest rates by 50 basis points...

Debt Outlook: Never Mind The Credit Crunch, Here Come New Debt Funds.
September 24, 2007... Private equity firms, one of the main culprits in the creation of the current credit crunch, are among the most active in gearing up to buy some of the securities that are now selling for steep discounts. New firms join the rush to buy debt...

PRIMARY WRAP: Emboldened Issuers Break Junk Market Ice.
September 24, 2007... The primary leveraged finance markets showed some signs of a thaw last week. Three new issuances had priced on the high yield bond market by Thursday morning, with three more on the calendar to price before the end of last week, as the Fed's...

EDITOR's NOTE: Movin' On Up, Er ... Over, To An Unburdened Small Shop Off The Street.
September 24, 2007... My mind is all a buzz with cliches - the bigger they are, the harder they fall; bigger isn't always better; good things come in small packages; and everyone's favorite, size matters. Right now in investment banking, size really does matter,...

Market Buzz: Dolans Look To Slim Cablevision Debt.
September 24, 2007... The Dolan family is considering various options to reduce leverage prior to the close of their buyout of Cablevision Systems Corp., according to the latest proxy materials the family has filed. These options include the selling of assets,...

News: Market Welcomes CDX Roll With High Hopes.
September 24, 2007... Market participants welcomed the ninth series of the North American Investment Grade CDX index (CDX.IG.NA series 9) last Thursday with high expectations, specifically with the addition of better quality and retail-heavy names. "We have...

News: Third-Quarter Bank Numbers? Don't Panic.
September 24, 2007... The first wave of investment bank earnings has arrived, and here's the consensus: Breathe a little easier. Over the past several days, Lehman Brothers, Morgan Stanley, Bear Stearns and Goldman Sachs have all posted their third-quarter...