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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.
