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’A new par for leveraged loans?
Another reason to have bought $12bn of loans from Citi for 90 cents on the dollar?
(Chart from Bank of America)
There seems to be a growing sense that for leveraged loans, at least, a bottom has been reached in the secondary market.
Lehman’s loan clearout
Bloomberg has a lot more information on the $2.8bn “Freedom” CLO Lehman brothers closed last week. FT Alphaville reported news of the deal at the time. The question we asked then, was, would Lehman shift the equity tranche or would they (likely) end up keeping it.
Lehman’s price on Freedom
Heard about the $3bn Lehman rights issue? What about the $3bn Lehman structured debt issue?
Almost, anyway. Lehman is preparing to issue a $2.8bn Collateralised Loan Obligation, according to Total Securitization.
Watch out! There’s another bank robber about
Lehman seems to have taken a leaf from the HBOS playbook. With Lehman’s stock falling on Thursday on large put option volumes, and its CDS trading wider, the bank went on the offensive.
Reuters reports a spokeswoman as saying:
“Moral hazard, made visible”
HT, Martin Wolf.
Related stories
Interventions spur rally in US financials – FT
Banks propel Europe ahead – FT
The Old Lady of Threadneedle Street meets Oliver Twist – The Guardian
Investment banking CDS stress
Watch out this week for the Q1 numbers from the three of Wall Street’s finest left standing.
Signs of stress there too in the pricing of their credit default swaps. Lehman’s move though comes before its $2bn capital raising late Friday.
Lehman cuts
If you are a Lehman-ite, don’t think that just because you have made it to the end of Monday you are necessarily going to make it to the end of the week.
News of an across-the-board, all division, all regions,
Lehman traders suspended; “issues” identified with trades
Two equity traders at Lehman brothers in London have been suspended.
A spokesperson for the bank told Reuters that “issues” had been identified with some of their trades:
Sums involved are not material but the matter is being reviewed in line with our usual procedures.
As Wall St forecasts are cut (again), Magnus warns: ‘It’s different this time’
Enough of this bullishness!
The London stock market may have been testing 6000 again on the FTSE 100 on Monday. Alleged bijou banks Alliance & Leicester and Bradford & Bingley might be takeover targets.
Fuld reaps rewards at Lehman
Investors might have received Lehman’s Q4 numbers on Thursday a little better. The bank’s shares fell, in a gloomy market, despite earnings for the final quarter of the year coming in ahead of Wall Street’s expectations.
The bulls are back in town…
Really? We were surprised too.
The first group of optimists seem not to have fully embraced the credit crunch creed – that, broadly speaking, we are all doomed.
Lehman’s strategy team, led by Ian Scott,
Lehman gets on board with Boat
The LSE’s closest advisor has signed up to Boat, the rival trade reporting system that goes live when the markets open on Thursday, reports the Telegraph. Lehman Brothers joined the project two weeks ago after it was the only major institution that was not part of the original consortium of nine banks that set up the trade reporting business.
Banks raise $170bn for funds to buy stuck LBO debt
Is this the ultimate get-out-of-jail-free move? The FT reported this week that both KKR and Citigroup are in talks to set up a fund to hoover up impaired LBO debt.
The obvious irony being, of course,
Onwards and upwards? Earnings still supportive, say Lehman
Irrational, or right on?
Some analysts are tearing their hair out over the markets’ relaxed poise following the summer’s credit squeeze. UK equities, notes Phil Isherwood at DK on Monday are now just 4 per cent off their all-time high.
Still a way to go for M&A
Equity investors have a somewhat schizophrenic attitude towards M&A, writes Ian Scott, global strategist at Lehman Brothers.
On the one hand, they welcome buyers prepared to pay a premium for control of the companies they own a part of,
The truth about Tokyo – the financial sector has been ‘hollowed out’
Even as the Japanese government trumpets its aim to transform Tokyo into an international financial centre, every week brings another rumour about one hedge fund or another moving people off-shore, usually to Singapore or Hong Kong,
…But Morgan overcomes subprime woes
Morgan Stanley on Wednesday beat analysts’ expectations with a 40 per cent jump in Q2 earnings, boosted by its investment banking and equities businesses which helped overcome turmoil in the subprime mortgage sector.
Sub-prime woes dent (some) Wall St Q2 profits, but what next?
Turmoil in the US mortgage market took a toll on Q2 earnings at Goldman Sachs, Bear Stearns and Freddie Mac, fuelling suggestions that Wall Street’s run of record profits may be coming to an end, reports the FT.
Lehman sets pace as earnings hit record
Lehman Brothers reported a 27 per cent jump in second-quarter earnings to a record $1.3bn on Tuesday, confounding critics who had predicted that turmoil in the subprime mortgage market would badly dent its results.
Q2 looks good for Wall St banks but there’s a catch
Despite the recent gloom-and-doom predictions about spillover effects emerging from the US subprime mortgage turmoil, Wall Street investment banks are expected to report strong second-quarter earnings this week as ECM,
Overworked, understaffed, banks fear errors
Top investment banks are struggling to cope with the record volume of deals and their overworked staff around the world are in danger of making costly mistakes, according to senior executives. Executives at Goldman Sachs,
People: coup for Lehman, exit at UBS
Lehman Brothers will on Monday announce the appointment of Edmond Alphandéry, the former French finance minister, to its European advisory board, beefing up a list of strategic advisers that reads like a Who’s Who of continental business.
Lehman next to bring private equity to market
Lehman has confirmed that it is considering the listing of a private equity fund of funds on Euronext – despite the underperformance of other such vehicles to have hit the market.
KKR rather took the wind out of the expected stampede to secure so-called ‘permanent capital’ – against an original target of $1.5bn,
Lehman, Tishman in $12bn deal for US Reit
A deal between Tishman Speyer Properties and Lehman Brothers to purchase Archstone-Smith Trust, one of America’s leading apartment real estate investment trusts, for more than $12bn could be announced as early as Tuesday,
Seat PG investors appoint Lehman to explore options
Private equity shareholders speaking for 49% of Italian yellow pages firm Seat Pagine Gialle have appointed Lehman Brothers to look into options for the company, reports Reuters on Tuesday.
The shareholders – snappily named PG Sub Silver,
For bankers, Moscow is the new Wall Street
Within a mile of the tomb of Vladimir Lenin, who vowed to destroy capitalists, investment bankers in Moscow are now earning double the pay of their counterparts anywhere else, reports Bloomberg. Dealmakers such as Ed Kaufman,
Advent buys Lloyds TSB Registrars for £550m
Advent International, the mid-market private equity firm, is understood to have clinched the bid battle for Lloyds TSB Registrars. The deal, which will be announced shortly, is set to value the share registration arm of Britain’s fifth-largest bank at around £550m.
Lehman to run fixed-income from London
Lehman Brothers on Wednesday said Roger Nagioff would become global head of fixed income and be based in London, dramatically underscoring the New York-based bank’s commitment to growing in the UK, Europe and Asia.
DE Shaw mulls new private equity fund
DE Shaw, the $29bn US hedge fund, is considering launching a private equity fund into which it could inject some of its existing holdings, potentially including New York’s biggest toy shop, said investors consulted on the idea.