MarkitHomebulletCareersbulletContact UsbulletSite Mapbullet
Default Message
Markit Commentary
 

CDS Movers

CDS Improvers - 8 May 2008

Ticker CLIP Name Doc Clause 5Y Today Daily Chg (bp) Weekly Chg (bp) 28 Day Chg (bp)
TEMBEC-Inds CKGB9C Tembec Inds Inc XR 877 -53 -88 -215
AGO-AGC 04A83G Assur Gty Corp MR 266 -17 -16 -160
HCN 4G438R Health Care REIT Inc MR 163 -16 -41 -122
ANGIRI 0D855D Anglo Irish Bk Corp Plc MM 199 -15 -43 -192
PHHCO 6FC652 PHH Corp MR 529 -15 -17 -87
LMLLC 5I378G Liberty Media LLC MR 342 -14 -36 -112
RDN 7C5259 Radian Gp Inc MR 802 -12 51 -294
IPG 4A66F9 Interpublic Gp Cos Inc MR 375 -10 -17 -189
IKN 4J6884 IKON Office Solutions Inc XR 308 -9 -26 -202
HYNMTR 48DA9F HYUNDAI Mtr Co CR 209 -7 -12 -61
TEMBEC-Inds - Canadian forestry products company continued to tighten in the aftermath of its debt restructuring earlier this year. The recapitalisation, which converted debt into equity, leaves Tembec with a stronger balance sheet. A bullish speech by the head of the Forest Products Association of Canada helped sentiment, as did a weakening of the Canadian dollar against USD.
 
AGO-AGC - Bond insurer Assured Guaranty Corp could be in for further volatility in reaction to its earnings posted after the bell. The company said it lost $169.2 million, or $2.11 a share, mainly attributable to an after-tax unrealised loss on credit derivative positions. Operating income was also well below consensus estimates.
 
HCN - Spreads in Health Care REIT tightened after it posted better than expected results after the close on Wednesday. The company said normalised funds from operations, the key metric for REITs, was $0.81 a share, up 7% from last year and higher than consensus expectations.
 
ANGIRI - Anglo Irish Bank's spreads dipped below 200bp for the first time since February following its solid results released on Wednesday. The bank's earnings were up 15% in the first-half of the fiscal year and its liquidity position remains strong. Asset quality, the factor most closely watched in the commercial lender, is holding up well, with only 0.52% of loans considered impaired.
PHHCO - PHH Corp, a provider of mortgages and vehicle fleet management services, tightened ahead of its first-quarter results due after the bell. In the event, net income doubled to $30 million from $15 million last year. However, the company benefited from a $42 million reverse termination fee from Blackstone and a $30 million favourable impact relating to the adoption of fair value accounting practices. Blackstone tried to acquire PHH's mortgage business last year but was unable to raise the funds.

CDS Deteriorators - 8 May 2008

Ticker CLIP Name Doc Clause 5Y Today Daily Chg (bp) Weekly Chg (bp 28 Day Chg (bp)
MESSA X2AEDG M real Corp MM 989 37 80 28
FSL 38BEFT Freescale Semiconductor Inc XR 794 30 9 -234
CCU 19C952 Clear Channel Comms Inc MR 831 25 22 -46
WENL FOHB91 WENDEL MM 297 25 14 -67
SGDS 8EDAAM SUNGARD DATA Sys INC XR 418 24 39 -69
BOL 0H8877 Bausch & Lomb Inc MR 376 23 49 -39
INEGRP GKBDF0 Ineos Gp Hldgs plc MM 806 23 44 15
ISSAS-Global KP55EY ISS Glob A S MM 390 23 14 -27
STORA 8E831M Stora Enso CORP MM 300 22 17 -76
CTX 1G7543 Centex Corp MR 364 22 22 -32
MESSA - Finnish paper producer M-Real continued to widen amid negative sentiment in the sector. Norwegian rival Norske Skogindustrier posted disappointing earnings yesterday, blaming the industry wide problems of declining newsprint demand, high raw material prices and a strong euro.
 
FSL - Freescale Semiconductor's spreads widened after it said it was unlikely to find a buyer for its East Kilbride plant in Scotland. The company said it was unable to market the facility as a going concern, and most now expect the plant to close.
 
CCU - Clear Channel's spreads widened yesterday but stayed within its recent 800bp-850bp trading range. The New York Supreme Court ruled late on Wednesday that the dispute between the private equity consortium looking to buy the company and the banks that agreed to fund the deal will now go to trial. The buyout consortium is accusing the banks of reneging on their agreement by changing the terms of the financing. Spreads movement will remain uncertain until the dispute is resolved.
 
WENL - French investment company Wendel widened on no firm news. The firm's spreads have been under pressure due to its aggressive financial profile and its leveraged investment strategy, most notably its stake in cement producer Saint Gobain. The latter's share price rally in March helped Wendel's spreads recover, and the maintenance of its investment grade rating will depend on the performance of its underlying assets.
 
SGDS - Sungard's strong rally over the last two months has come to a halt this week ahead of its first-quarter earnings due yesterday. The company's adjusted EBITDA was $322 million, an increase of 12% compared to the same period last year. The firm didn't give any guidance but tithe CEO was relatively bullish in his comments.  
 

Markit Credit News