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CDS Movers
CDS Improvers - 6 August 2008
| Ticker | CLIP | Name | Doc Clause | 5Y Today | Daily Chg (bp) | Weekly Chg (bp) | 28 Day Chg (bp) |
|---|---|---|---|---|---|---|---|
| DEXBB-FSAInc | 348DFY | Finl Sec Assurn Inc | MR | 621 | -129 | -127 | -44 |
| BAALTD | GG6FCJ | BAA Ltd | MM | 180 | -76 | -63 | -84 |
| FON-CapCorp | 8D7266 | Sprint Cap Corp | MR | 333 | -53 | -23 | 27 |
| S | 8D728N | Sprint Nextel Corp | MR | 332 | -51 | -23 | 26 |
| AMKR | 0D47B7 | Amkor Tech Inc | XR | 659 | -13 | 30 | 38 |
| SFD | 8B546C | Smithfield Foods Inc | XR | 533 | -13 | -17 | -72 |
| LEA | 5H39EB | Lear Corp | MR | 903 | -13 | 117 | -15 |
| GT | 3BA7A5 | Goodyear Tire & Rubr Co | XR | 488 | -11 | 20 | -18 |
| GPTAU | QU4079 | GPT RE Ltd as responsible entity of the Gen Ppty Tr | MR | 359 | -11 | -27 | -41 |
| ARAM | 03BD7H | ARAMARK Corp | MR | 474 | -10 | -23 | -61 |
DEXBB-FSAInc - Bond insurer FSA's spreads tightened sharply after parent Dexia announced radical restructuring measures. The Belgian group said it would inject another $300 million in the ailing insurer, adding to the $5 billion it has already given to FSA. Crucially, Dexia said it will now assume the liquidity and credit risk for FSA's financial products. FSA will also pull out of ABS insurance business altogether and focus on its core municipal division. Despite these measures, S&P placed FSA's AAA rating on negative outlook. The rating agency expressed skepticism that FSA can return to business as usual, and highlighted the possibility of its reputation being tarnished.
BAALTD - UK airport operator BAA reached its tightest level since last November after bondholders agreed to its planned refinancing. The plan is crucial to BAA's survival, as it is currently paying onerous interest costs that would be unsustainable in the medium term. Bond holders will now have their obligations transferred into a ring-fenced entity, where the bonds will be backed by security and guarantees from BAA's three London airports. Because of the extra rights and protection, BAA should be upgraded to single A on completion of the refinancing.
S / FON-CapCorp - Sprint Nextel's spreads tightened after it posted results that exceeded expectations and announced plans to reduce debt. The mobile telecoms group said that it made a net loss of $344 million, or $0.12 a share. But on an adjusted basis it made $0.06 a share slightly higher than consensus expectations. The company also announced that a $3 billion convertible preferred stock offering that will be used to reduce debt, amongst other things.
AMKR - Amkor Technology's spreads tightened after it reported higher second-quarter net income. The semiconductor services company said it made 33 cents a share compared to 16 cents a share in the same period last year.
CDS Deteriorators - 6 August 2008
| Ticker | CLIP | Name | Doc Clause | 5Y Today | Daily Chg (bp) | Weekly Chg (bp | 28 Day Chg (bp) |
|---|---|---|---|---|---|---|---|
| TSG | 7FDE95 | Sabre Hldgs Corp | MR | 934 | 34 | 27 | 105 |
| ITV | GKDHCE | ITV Plc | MM | 361 | 29 | 65 | 26 |
| ARGENT | PP7D7E | Argentine Rep | CR | 757 | 24 | 79 | 51 |
| KAZ | Y29ECH | Kazkommertsbank JSC | CR | 816 | 23 | 53 | 104 |
| ITV-Carlton | GHA96M | CARLTON Comms Ltd | MM | 304 | 19 | 70 | 70 |
| NIECO | NT952F | Nielsen Co | MM | 604 | 17 | 51 | 48 |
| AW-NorthAmerica | 01AED5 | Allied Waste North Amer Inc | XR | 285 | 14 | 16 | 113 |
| ALCLCT | FF1AAK | Alcatel Lucent | MM | 542 | 14 | 37 | -3 |
| EMIG | GJ338L | EMI Group Ltd | MM | 809 | 13 | -15 | -134 |
| CIT | 137AD9 | CIT Gp Inc | MR | 765 | 12 | -5 | 28 |
AIFUL / TAKFUJ - Japanese consumer finance companies Aiful and Takefuji widened amid nerves around bank results in Europe and North America. However, the Fed's decision to stay on hold and falling oil prices have seen Japanese credits tighten today.
PROSIE - German TV broadcaster ProSiebenSat.1 Media widened ahead of its second-quarter results today. This morning the company posted a sharp fall in net profit, mainly due to weakness in its German operations.
TNT - TNT's spreads widened after it issued a new £450 million bond. The issue was well-received, according to reports, with strong demand from UK investors. The Dutch postal services company said it will not use the proceeds to refinance existing debt. TNT has a bond due December 2008.
ADO - Swiss recruitment firm Adecco saw its cost of protection rise after it confirmed that it had made an unsolicited approach to acquire UK rival Michael Page. The sector has been damaged by the economic slowdown in the UK, particularly in financial services. Consolidation and an increase in scale, if done at the right price, could help Adecco withstand a decrease in activity. Michael Page specialises in higher-end professional services, which would complement Adecco's general staffing operations. A takeover, however would clearly impinge on Adecco's credit profile and could result in rating downgrades.
