Credit markets
Japan credit default swaps continue technical tightening
Credit default swap spreads in Japan were tighter across the board this week, with some protection sellers posting aggressive offers on the market, dealers said today.
HVB protection surges on downgrade
The cost of senior credit protection for the five-year debt of Germany's HypoVereinsbank (HVB) has surged nearly 30 basis points this week following a two-notch downgrade of its unsecured deposit and debt rating by Moody’s late on Wednesday.
CDO managers target leveraged loans, says S&P
European collateralised debt obligation (CDO) managers are likely to target leveraged loans this year, said the European structured finance ratings unit of Standard & Poor's (S&P) today.
Morgan Stanley and Axa sued over CBO management
Jersey-registered collateralised bond obligation (CBO) investor Beaford is suing US investment bank Morgan Stanley and French insurer Axa, along with a number of its subsidiaries, for failing to properly manage three CBOs between 1996 and 2002. Morgan…
Japanese synthetic CDO market to see continued growth
Japan’s synthetic collateralised debt obligation (CDO) market is likely to continue to boom in 2003, according to a report published this week by credit rating agency Moody’s Investors Service.
Default swap curves flatten for France Telecom and Fiat
Default swap curves for volatile European corporate issuers, including France Telecom and Fiat, have flattened out, according to Chris Francis, a credit derivatives analyst at Merrill Lynch in London.
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Synthetic CDOs lead growth in European securitisation, says Moody’s
Collateralised debt obligations (CDOs) saw the greatest volume of growth in the European structured finance market in 2002, said ratings agency Moody’s in a report today. Last year, issuance rose to €182 billion, an increase of 42% on the total in 2001,…
Asia's ABS market breaks records in 2002
The Asian securitisation market had its most successful year ever in 2002, with cross-border issuance reaching a record $5.56 billion, according to a report by ratings agency Moody’s Investors Service.
Japanese credit default swap spreads tighten as liquidity returns
Japanese credit default swaps were generally tighter this week, as more participants came back to the market, putting an end to several weeks of illiquidity during the holiday season.
Telco bond issues spark flurry of activity in credit markets
The €5.5 billion new bond issue by France Telecom on Wednesday followed by a smaller €500 million issue by Deutsche Telekom, yesterday, sparked a flurry of activity in the European credit markets.
ABS market continues to grow despite volatility, says Moody's
Issuance in the US asset-backed securities (ABS) market reached $400 billion last year, with the market growing on average 26% annually since 1986, according to a new report issued by rating agency Moody’s Investors Services.
Westpac launches CDO of CDOs
Australian bank Westpac has closed a $1.25 billion synthetic collateralised debt obligation (CDO) backed by a pool of structured finance transactions. The deal, arranged by JP Morgan Chase, is thought to be the first such structure issued in Asia-Pacific.
European credit default swaps tightening lags cash market
Spread tightening continued across the European credit derivatives market this week, driven by increasingly positive sentiment towards credit risk. But traders noted that credit default swap spread tightening lagged the cash market.
Cross-sector risk transfer regulations should be reviewed, say FSA respondents
The UK's Financial Services Authority (FSA) recently released feedback on responses to Discussion Paper 11, which focused on the effects of risk transfer between the banking industry and the insurance industry via credit derivatives and related products,…
New issuers needed for French securitisation market, says S&P
New issuers must be attracted if funded issuance in the French securitisation market is to continue to grow, according to Nicolas Malaterre, a Paris-based associate director in Standard and Poor’s European structured finance ratings group.
Agricole Indosuez to launch new credit-tracking index in Asia
Credit Agricole Indosuez is launching a new tracking index in Asia aimed at better representing the performance of the underlying credit market than current bond indexes in the region.
Merrill pitches CDS baskets as alternative to risky single names
Instead of confining themselves to riskier individual corporate bonds, investors hunting yield can find relatively more value in basket credit derivatives, according to research by Merrill Lynch.
Japan credit default swaps open year quietly
Japan’s credit default swap market opened the year quietly this week, with some names tightening, partly on the back of tighter US and European markets, while others widened on negative equity news.
Deutsche Telekom credit default widens on downgrade
The cost of protection for Deutsche Telekom has widened 20 basis points following today’s downgrade. Moody’s downgraded the long-term debt ratings of Deutsche Telekom to Baa3 from Baa1, and its short-term debt ratings to Prime-3 from Prime-2 with a…
CDO activity sparks tightening in default swap prices
Trading in the European credit default swap market this week was brisk, with traders stating they had seen good liquidity in the market and narrowing spreads following the holiday break.
More synthetic securitisation expected in Singapore in 2003
Singapore is likely to see more synthetic securitisation deals in 2003, according to Diane Lam, a Hong Kong-based director in Standard & Poor’s structured finance group.
Synthetics likely to dominate CDO issuance in 2003
Despite growing senior funding costs, the relative cheapness of super-senior swap funding should ensure that synthetic investment-grade issuance continues to outpace cash deals in 2003, according to Bank of America.
Japan credit default swaps in quiet start to New Year
Credit default swaps on Japanese names were unchanged on Monday, as market participants came back for a half day after the long New Year holiday.