Bond

Tyler Durden's picture

10 Year Loving The Lack Of New Bond Purchases





Or not. Bill Gross: "Disappointing statement"... Really Bill? One can see the botox losing the fight with the disappointment.

10 Year now at 3.11%

2s10s massively steeper

 
Tyler Durden's picture

GM To Announce Bond Exchange By April 27





From Bloomberg:

April 16 (Bloomberg) -- General Motors Corp. is planning to make a formal offer to all bondholders by April 27 to exchange their $27.5 billion in claims for equity, according to a person
with knowledge of the discussions.

GM, facing a June 1 U.S.-backed bankruptcy, was told this week by President Barack Obama’s auto task force to try to restructure its debt out of court, said people familiar with the

 
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SPG Likes Leverage So Much It Upsizes Bond Offering





Simon Property Group's new "A3/A-" bond issue, which is pricing at a 10.875% yield just got upsized from $500 million to $650 million. Just like the marginal buyers of the MGM 13s of 13 are now very sorry, we smell something quite comparable happening here oh so soon.

 
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$233 Million IG Bond BWIC Latest On The Menu





In addition to the $261 million loan BWIC reported yesterday by Debtwire, another $233 million BWIC, this time in IG bonds has hit the market. Traders have only until 11 am this morning to submit lowball bids. While loan BWICs over the past month have been increasing rapidly, bond and especially investment grade bonds have not seen wholesale blue light specials yet.

 
Tyler Durden's picture

Junk Bond Returns Beat Every Asset Class YTD





The search for safe spots in the market rout so far this year has resulted in some curious hiding places. The big rotation out of equities in the end of 2009 and into credit has accelerated, and while IG initially was considered the frontrunner for the safe credit category, it is surprisingly junk debt that has emerged as the best performing sector of 2009.

 
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LPX Prices Long Suffering Bond At 75 OID With 15% Warrants





LPX may have averted bankruptcy in the last moment at the expense of a few gullible investors, who ended up purchasing the bond issue LPX had been marketing for over 5 months. Bank of Countrywide Lynch and Goldman have to be given props for this one as the Stardust odds for a successful LPX bond placement were roughly 10 to 1 against.

 
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UBS Trader Places $30.9 Billion Bond Order By Mistake





Someone is taking project Mayhem in the right direction. The Tokyo Stock Exchange immediately suspended trading of CapCom bonds after a 3 trillion Yen order was placed. Unfortunately the entire outstanding issue is only 15 billion Yen.

A good analogy would be a trader (Obama) placing a $3 trillion market bid order in the common equity of Citi, which only has $15 billion outstanding.

 
Tyler Durden's picture

Bond Flipping Picks Up In Early 2007 Deja Vu





The credit market is on fire, as is proof that greater fool theory is alive and well. Yesterday saw the placement of 3 high yield issues at a much more reasonable original issue discount, and yet accounts were swarming like flies on excrement with lipstick. All three issues have immediately generated about 1-2 points return post break, leading many original allocators to flip their holdings to naive secondary market bidders.

 
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Russian Bond Market Facing 80% Yields





Despite some muddled explanations from its administration on how Russia may or may not be in fact filing for private sector (but definitely not sovereign) bankruptcy, this story shows why some sort of default is imminently unavoidable as essentially the entire Russian private sector is now shut out from the primary bond market, with no foreign bond issues since August 2008.

 
Tyler Durden's picture

Overview of Recent Secondary Market Bond Repurchases





In the past 2 months, while many investors were concerned that the bottom is falling out of the market, CFOs were busy buying back debt in the secondary market. Note that this is not buying back debt in formal registered exchanges, which due to prevailing distressed levels, would have been classified as distressed exchanges which usually are branded as events of defaults by rating agencies. So instead companies decided to buyback existing debt at substantial discounts, netting not only no rating agency attention but a potential upgrade down the line.
 
Tyler Durden's picture

Overview of Recent Secondary Market Bond Repurchases





In the past 2 months, while many investors were concerned that the bottom is falling out of the market, CFOs were busy buying back debt in the secondary market. Note that this is not buying back debt in formal registered exchanges, which due to prevailing distressed levels, would have been classified as distressed exchanges which usually are branded as events of defaults by rating agencies. So instead companies decided to buyback existing debt at substantial discounts, netting not only no rating agency attention but a potential upgrade down the line.
 
Tyler Durden's picture

Intelsat New Bond Issue Faring Very Well In Weak Credit Market





Intelsat came to market in a Goldman Sachs syndicated bond offering for $400 million of 8.875% Senior Notes due 1/2015. The B3/BB- issue for reference entity Intelsat Subsidiary Holding Company, had been upsized from $200 million, and was snapped up due to its original issue discount, pricing at 88.5% for an 11.6% yield. The proceeds will be used to pay down existing debt.

 
Tyler Durden's picture

Intelsat New Bond Issue Faring Very Well In Weak Credit Market





Intelsat came to market in a Goldman Sachs syndicated bond offering for $400 million of 8.875% Senior Notes due 1/2015. The B3/BB- issue for reference entity Intelsat Subsidiary Holding Company, had been upsized from $200 million, and was snapped up due to its original issue discount, pricing at 88.5% for an 11.6% yield. The proceeds will be used to pay down existing debt.

 
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Media Popularity Rater Nielsen Coming to a Vicious HY Market with Bond Offering





The expectation is that Nielsen Co. (Caa1/CCC+) will be coming to market momentarily to take advantage of "demand" for junk debt. Apparently the issue will be $300 million maturing in 5 years. We say the OID will be 25 points and we also take the under.

 
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