Defaults have peaked, says Moody’s
Moody’s says that the rolling twelve-month high yield default rate fell in December, for the first time since the start of 2008

Seller jumps the gun ahead of first big b-wic of the year
The first visible large CLO auction list to market in the new year saw at least four bonds sold ahead of its deadline at 11am New York time today

Bond tender and exchange offers draw investor interest
Evolution Securities today notes some trading interest around two high yield companies that have made exchange and tender offers.

Play Europe/CDX IG decompression, says trading desk
BNP Paribas trading analysts today recommend a decompression play on iTraxx Europe versus CDX IG

Secondary CDO trading kicks off in 2010
The first visible structured credit bid-wanted competition lists hit the market yesterday with more to come, say structured credit traders

Rescap bailout prompts index tranche flurry
The massive rally in Rescap credit default swaps yesterday helped ensure that index and correlation traders began the year with an active session.

Prop desk auctions 2000 vintage mezz as CLO bid lists continue
A New York-based investment bank proprietary trading desk is circulating a three-name CLO bid-wanted in competition list

Casting doubt on steel’s recovery
Steel production is rising from last year’s lows. But demand is due to re-stocking rather than
a real turnaround in end-users’ markets – and new risks are looming.

A brighter, tighter world
Our panel of leading credit fund managers agree that thirst for yield will drive spreads still tighter in 2010, but have differing views about how to make money in that environment

CDO liquidates its CLO holdings as auctions start to wind down
The CLO bucket from Church Tavern’s Saturn Ventures II CDO will liquidate today at 10am New York time

Mast owner offers “measly” fee for revolver amendment
Investors complain that a double B borrower is offering investors poor terms to agree to changes in their credit agreement

Mid-market manager scores 2009 first with "brand new" CLO
Further details have emerged of the new issue CLO printed by mid-market loans specialist NewStar Financial this week

Fixed recovery CSOs braced for hit from latest restructuring
A panel of lawyers decided yesterday that Mexican cement maker Cemex triggered a restructuring credit event back in August 2009

CLO portfolio liquidation meets strong demand
December normally is a month when bond prices drop and CDO buyers wait for desperate sellers. This was not the case last Wednesday when a CDO squared liquidated its portfolio of CLOs

S&P adds one name to CLOs' triple C bucket and removes another
Standard & Poor’s followed Moody’s lead in downgrading a widely held CLO constituent into the triple C category

CLO trades above par as liquidation whets investor appetite
The liquidation of the Tricadia CDO 2004-2 CDO squared on Monday surprised traders with its unusually strong year-end participation

Buyers shun double A CLOs in reach for yield
Senior traders report that investors are pulling back from buying double A CLO paper, preferring other parts of the capital structure

CDOs set to liquidate on Thursday
A large high-grade ABS CDO and a CDO of CDOs are slated to liquidate on Thursday buyside sources say

Water treatment company to call €200 million notes at par
Water treatment company Nalco has announced that it is calling its €200 million 7.75% senior 2011 notes at par