Leveraged Finance >>>

    Cash Squeeze Worst Since ‘10 for Asia Junk Issuers

    Speculative-grade companies in Asia face the worst funding situation in more than two years, according to Moody’s. The rating company’s Asian Liquidity Stress Index rose to 21.8 percent in August from 16.8 percent in July, the highest since the first quarter of 2010, it said in a report. The gauge measures the proportion of high-yield issuers that Moody’s assesses as [...]

    High-Yield Homebuilder CDS Trade Through Junk Average

    Arizona Pension Fund Increases Ability to Buy U.S. Junk Bonds

    The Arizona State Retirement System changed its policy June 15 to allow up to 5 percent of its $28 billion portfolio to be invested in junk bonds. This provides flexibility to buy more if the market becomes attractive, said Gary Dokes, the fund’s chief investment officer. Dokes spoke to Bloomberg Brief’s David Holley. Q: You increased the amount you can allocate to U.S. high yield bonds [...]

    Monte Paschi Bondholders Face 60% Loss Risk

    Investors in about 5 billion euros of Banca Monte dei Paschi di Siena’s junior debt face a more than even-money chance of suffering losses as bad loans pile up. The cost of insuring 10 million euros of the lender’s subordinated debt is 2.75 million euros in advance and 500,000 euros a year, signaling an almost 60 percent probability of default, according to [...]

    Investors Prepare For Brisk High Yield Issuance

    Investors’ hunger for yield is expected to drive September junk bond issuance and could help make 2012 a record year for high-yield debt sales. This month’s total could match the record $31 billion in new bonds sold in August, which was five times the average issuance for the month since 1999, analysts and investors say. An “insatiable demand” [...]

    GoldenTree Issues CLO Allowing 40% Bonds

    GoldenTree Asset Management raised a collateralized loan obligation of about $590 million that allows for as much as a 40 percent investment in second-lien loans and high-yield bonds. Bank of America arranged the deal, which is being used to replace a financing for a credit opportunity fund overseen by GoldenTree, which manages $15.9 billion in assets, according to two people with knowledge [...]

    Housing Collapse Erased in Homebuilder Bonds

    Another bubble may be forming in the U.S. housing market, this time in the bonds of homebuilders. Not since July 2007, before the subprime mortgage market collapsed and credit markets froze, have investors accepted relative yields as low as they are now for debt of the nation’s biggest homebuilders. Spreads at 4.82 percentage points on debt of borrowers from D.R. [...]

    Goldman’s Brafman Said to Leave After 11 Years

    Lester R. Brafman, a managing director in the high-yield debt sales and trading department at Goldman Sachs, left this week after 11 years at the firm, according to five people familiar with the matter. Brafman, 50, joined Goldman Sachs in 2001 after six years at Credit Suisse First Boston, according to records maintained by the [...]

    Best Buy May Use More Debt Than Average LBO

    Best Buy founder Richard Schulze is considering a takeover structure for the electronics retailer that would leave it with more debt than a typical buyout, said people with knowledge of the matter. Credit Suisse, Schulze’s financial adviser, has told Schulze that he can raise $6.5 billion to $7 billion in debt for a deal, and [...]

    Junk-Bond Sales Soar in U.S. as BofA Sees Bubble

    Sales of junk bonds in the U.S. have already set a record for August, as yields at about record lows combined with a slowdown in earnings growth spark concern the market has peaked. “It has become such a feeding frenzy,” said Bonnie Baha, who helps oversee $40 billion as head of global developed credit at [...]

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