Robert Cookson
CDS report: Barclays suffers
Credit markets punished Barclays on Friday after Citigroup said the British bank may need to raise an additional £9bn in capital.
The bearish note from Citi, which predicted further writedowns, added to deepening unease about Barclays’ capital strength.
CDS report: iTraxx Europe breaks 100bp
The Markit iTraxx Europe index, which tracks the cost of insuring investment grade European companies against default, breached the 100 basis points level on Thursday, signalling deepening pessimism about corporate creditworthiness on the continent.
CDS report: iTraxx Europe threatens to break through 100bp
Risk premiums on European corporate debt rose on Tuesday as investors worried that the second wave of the credit crunch would hit sooner than previously thought.
Players in the credit market, many of whom had been anticipating a quiet summer,
CDS report: Monoline fear drives Crossover through 500bp
The cost of insuring European corporate debt hit a two-month high on Friday after Moody’s stripped two large bond insurers of their top investment grade ratings, fuelling fears that banks will have to make further writedowns.
CDS report: “The very nasty period is soon to be upon us — be prepared”
Warnings from RBS that credit markets will enter a “very nasty period” later this year might have shocked some, but credit analysts across the city were largely in agreement.
Bob Janjuah, the RBS credit strategist,
CDS report: France Telecom spreads up on bid for TeliaSonera
TeliaSonera and France Telecom were the focus of European credit markets on Thursday as the Nordic operator rejected a $47bn bid from its French peer.
The cost of protecting the debt of both companies rose,
CDS report: B&B creditors escape shareholders’ pain
While shares in Bradford & Bingley plunged on Monday, risk premiums on the bank’s debt were little changed.
The credit market judged the onslaught of bad news (a profit warning, scaled-back rights issue and the chief executive’s resignation) as more or less offset by the good news (that private equity firm Texas Pacific would inject £150m into the UK lender.)
However,
CDS report: Traders brace for earnings deluge
The cost of credit protection in Europe rose on Thursday as traders braced themselves for a session packed with earnings results.
With at least 36 major European companies and 59 US heavyweights due to report today,
CDS report: cheered by RBS
The cost of insuring European corporate debt fell on Tuesday after Royal Bank of Scotland moved to rebuild its balance sheet by raising £12bn from shareholders.
On top of the right issue – Europe’s largest yet – RBS said it would raise a further £4bn by selling assets,
CDS report: RBS rallies amid fierce debate on credit outlook
The cost of protecting RBS debt against default fell on Friday after news it was preparing to launch a massive rights issue to rebuild its capital reserves.
Five year credit default swaps written on RBS senior debt tightened 8 basis points to about 73bp.
CDS report: Spreads tighten on Merrill relief
Risk premiums in European credit derivatives markets fell on Thursday as equities rose in relief that writedowns at Merrill Lynch and JP Morgan were not as dreadful as feared.
Merrill posted a first quarter loss of $1.96bn and took several billion dollars of writedowns for subprime mortgages and other risky assets.
CDS report: Nervy markets tighten ahead of key data
News that the credit default swap market almost doubled in size in 2007 to $62,000bn caused barely a blink among traders and analysts, who were focused on Tuesday’s key data releases.
Traders were looking ahead to data on housing starts,
CDS report: Tesco tightens amid general earnings gloom
European credit derivatives markets trod water on Tuesday as solid results from Tesco failed to shake traders from their pessimism about the Q1 earnings season.
Tesco met forecasts with an 11 per cent rise in annual profit and said it had got off to an “encouraging”
CDS report: General Electric results damage confidence
Sentiment in credit markets was fragile on Friday, as traders took their lead from equity markets.
The mood turned a shade darker in late morning trade, however, when US bellwether General Electric reported a worse-than-expected fall in profits
“The results and guidance was a disaster,”
CDS report: end of the rally, volatile weeks ahead
Bears reasserted their dominance in credit derivatives markets on Wednesday as fears deepened about how companies would fare in a protracted economic slowdown.
Sentiment darkened as analysts called an end to the rally that saw European and US credit default swap indices fall sharply in recent weeks.
CDS report: Analysts say an end to the tightening is nigh
While key indices of credit default swaps continued to tighten on Monday, analysts warned that this did not necessarily reflect an improvement in risk appetite.
The cost of insuring the debt of the mostly junk-rated companies in Europe’s iTraxx Crossover index fell 13 basis points to 468bp.
CDS report: “You’re seeing a huge short squeeze”
Credit derivatives markets appeared to grow even more upbeat on Wednesday, but signs of unease were bubbling beneath the surface.
Closely-watched indices of credit default swaps, which have fallen sharply in recent weeks,
CDS report: Gloomy end to first quarter
European credit spreads drifted wider on Monday, reflecting the market’s pessimism about the outlook for the second quarter.
Banks were in the spotlight after Merrill Lynch said it expected UBS to make a further $11bn of first-quarter writedowns in the coming days.
CDS report: After the Bear excitement, focus returns to US downturn
The recent euphoria in European credit markets — driven by the Fed’s unconventional action to stabilise the financial system — gave way on Thursday to a more sober assessment of the wider economy.
In recent weeks,
CDS report: Spreads fall after improved Bear bid
The cost of protecting European corporate debt against default fell on Tuesday, with confidence boosted by rising equity markets and an improved bid for Bear Stearns.
JPMorgan has increased its bid for Bear from $2 to $10 per share.
CDS report: Spreads tighten ahead of index roll
European credit spreads fell for the second day running on Wednesday, driven by a combination of optimism about bank debt and technical effects ahead of the upcoming index roll.
Better-than-feared results from Goldman and Lehman Brothers on Tuesday,
CDS report: A rare tone of optimism lifts markets
A degree of calm returned to credit derivatives markets on Tuesday as traders grew more confident in the Fed’s ability to contain systemic risks in the financial system.
After Monday’s turmoil, the cost of protecting European corporate debt against default fell sharply in light morning trade.
CDS report: Fed move fails to impress
European credit markets took the Fed’s $200bn liquidity injection with a hefty pinch of salt on Wednesday.
A powerful surge in US equities overnight — triggered by the Fed move — helped European credit default swaps tighten,
CDS report: “Risk reduction is firmly on the menu,”
European credit derivatives indices hovered around their highs on Monday, but analysts continued to worry about the unwinding of structured credit instruments.
The iTraxx Europe, which measures the cost of protecting 125 investment-grade credits against default,
CDS report: Spreads hit record highs, entering “wild and inexplicable” territory
European credit spreads surged to record highs on Friday, breaking through levels that analysts fear could represent a tipping point.
The iTraxx Europe index, which measures the cost of protecting 125 investment-grade credits against default,
CDS report: Hedge fund failures spook the market
The cost of protecting European corporate debt against default rose on Wednesday after the third hedge fund failure in the space of a week.
Carlyle Capital, a publicly-traded mortgage bond fund, said it received a notice of default after failing to meet margin calls from banks,
CDS report: Unwind fears drive spreads to record highs
European credit derivatives indices hit new highs on Monday in a bearish session dominated by worries about forced liquidations of structured credit instruments.
Analysts fear that structured products such as leveraged super-senior notes and constant proportion debt obligations are on the cusp of hitting market value triggers that would force them to be unwound.
CDS report: Hedge fund worries disturb the peace
Credit derivatives markets ended an explosive week with a whimper on Friday as trade slowed to a trickle.
But nerves remained on edge thanks to reports of distress in the hedge fund world.
New York-based investment firm DB Zwirn & Co said it would liquidate its two largest hedge funds after clients asked to withdraw more than $2 billion.
CDS report: Market shudders at Credit Suisse “pricing error”
The iTraxx Crossover continued its advance towards the unbroken 600-mark on Tuesday after Credit Suisse revealed a shock $2.85bn loss on structured credit positions, dealing a further blow to confidence in the financial sector.