Rise in LBOs sparks insider dealing fears

Credit derivatives traders could be profiting from insider information on transactions in the leveraged buyout and M&A sectors, according to a report published by Credit Derivatives Research.

The US research provider notes that CDS prices on 30 takeover targets rose before the transactions had been made public. This includes four out of the five largest LBOs in 2006. The report highlights Freescale Semiconductor, Sara Lee Corp and Knight Ridder as companies whose CDS saw the most activity.

Mea

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: