Credit - 2007-03-01
Articles in this issue
iTraxx roll date poses first test for CPDOs
Market participants downplay concerns that fast money accounts may exploit the index roll by trading against CPDO managers when the series rolls on March 20
Subprime mortgages trigger ABX sell-off
Investors in the subprime mortgage sector might have been expecting some kind of market correction after a jump in delinquency rates at the back end of 2006. What they weren't expecting was a full-scale stampede out of the ABX index. Credit reports
Investment grade
Secondary market liquidity
Moody's hybrid methodology
Talking point
Purva Sule
The head of the financial services practice at Pipal Research in Chicago explains why more investment banks are offshoring credit research
Winner: Wienerberger
Amongst the month's most innovative and ground-breaking deals in the credit markets, we highlight Wienerberger's hybrid, Anderson Valley II CDO and HBOS's $3bn covered bond
It's different this time - really
The advent of the structured credit market has changed investors' understanding of risk. What's more, the triggers for widespread losses will not be the same this time round
Oxygen for the markets
... or why market sentiment is propping up ill companies
TABX launches into rocky ABS market
Dealers started trading tranches of the ABX indices just as fears of subprime mortgage losses sent spreads reeling and caused wildly divergent pricing on the new product
High yield
Secondary market liquidity
Investing Philly-style: Aberdeen AM's US fixed-income team
Cross-asset class teamwork coupled with conservative risk management drives Aberdeen Asset Management's investment strategy, leading to a current concentration on MBS and an underweight allocation to corporate bonds. This year they're on the lookout for…
Bob Buhr
The existence of so-called special shares in some European companies enables governments to block certain transactions such as acquisitions and LBOs. Understanding how they work is necessary for bondholders in assessing LBO risk, says the head of credit…
Q: What do the distressed debt market and the Japanese puffer-fish have in common? A: They're both irresistible - but highly toxic
Distressed debt investors gearing up for a bumper year should take note of the name of Babson's new credit fund, Fugu, after the deadly Japanese puffer-fish - a prized delicacy that can be lethal if not prepared correctly. Philip Moore reports on the new…
Middle East property boom boosts Islamic bonds
The growth in real estate development across parts of the Middle East is giving rise to a number of Islamic bonds securitising these assets - and foreign investors can't get enough of them
CDS documentation
Market graphic
Back to basics
We take you back to the credit basics to review everything you thought you already knew but were too afraid to ask ... Juan-Carlos Martorell, director in structured credit marketing at ABN Amro in London explains the mechanics of CPDOs
The Big Interview: LMA
Should high-yield issuers publicly disclose details of their loan agreements? Nikki Marmery talks to the LMA about this thorny issue
Gearing up for ever higher leverage
Rising leverage in the global system coupled with fears for the accuracy of credit risk pricing dominated discussion at the World Economic Forum in Davos this year. But not everyone is downbeat, as Matthew Attwood finds out
