Bonds

Junk bonds the latest victim of rising rates

17 May 2004

That prices are finally falling is hardly surprising. A correction was long overdue. The correction will affect opportunistic refinancings and private equity deals.

CGE to raise £2bn to buy power stations – report

7 Apr 2004

The group has changed tack. It will now offer cash in addition to bonds for distressed UK power stations. This will increase its bids attractiveness, but success for CGE is still a long shot due to rising electricity prices.

Bond investors need to get defensive

30 Dec 2003

Bullish buyers drove bond prices up in 2003. The market now looks very expensive. And which ever way the global economy goes in 2004, they are exposed.

Rhodia pays for breathing room

23 Dec 2003

The French chemicals company has come to an agreement to reschedule its onerous debt. But Rhodia will be forced to raise E300m in equity at a heavily diluted price.

Prada finds Italian banks to replace Deutsche

18 Nov 2003

Prada has been a headache for Deutsche. But if it gets out, it will lose the chance to run the books on the group s IPO when it happens. The Italian luxury group has been embroiled in complex negotiations with Deutsche Bank since it breached the covenants on a E700m loan.

Corporate bonds look vulnerable

7 Oct 2003

A stronger euro, a more volatile stock market and mixed news on the economy don't bode well for credit spreads. With valuations looking a little stretched, bond traders may be tempted before long to lock in their gains for the year.

Bigger bookrunners don’t always get fatter fees

25 Sep 2003

That much is evident in preliminary thirdquarter league tables for the debt capital markets. Some parts of the debt business are more lucrative than others. But some banks make more money than others on the same stuff.

Bunds fare best in bond market crunch

27 Aug 2003

European government bonds have outperformed US Treasuries during the selloff. They still look like a safer bet than US debt, regardless of economic recovery.

Junk bond market takes a wobble

20 Aug 2003

But if borrowers lose easy access to credit a vicious circle can develop. Investors must closely monitor this. The reason rising government bond yields isn t terribly worrying. And valuations are now more defensible.

LVMH’s Q2 sales slump 15%

24 Jul 2003

While Louis Vuitton continues to defy gravity, the luxury group lesser brands were hit by the horrible environment. These troubles won t stop LVMH from boosting H1 operating profit 3%. But its diversification strategy raises vexing questions.

Don’t get excited about credit ratings upgrades

16 Jul 2003

A surge in upgrades provides some comfort for the bulls in the credit market. But credit quality is simply worsening less quickly than before. And the economy remains a big risk.

Banks wise up on backup lending

3 Jun 2003

Using relative value pricing, lenders can now force companies to pay the going market rate if they dig into unfunded commitments. While borrowers in trouble might have to pay higher rates just when they can least afford it, they still get their money.

Credit research struggles to find post-Spitzer model

17 Apr 2003

There is less secondary trading in bonds than equities, so it s harder to wean credit research off investment banking cash. UBS has come up with a solution: split research into two bits, with one reporting to investment banking.

Parental influences

20 May 2002

Profits gone South

28 Feb 2002

Just a shop, after all

23 Jan 2002

Slash and burn

14 Dec 2001

T-Online’s broadband benefits

29 Nov 2001

Selling PCs, not using them

27 Nov 2001

Daddy to the rescue

12 Nov 2001