BNP Paribas recommends holding Credit Logement's tier-one
BNP Paribas analyst note that Credit Logement’s €450 million tier-one floating rate note gives an attractive yield of 21.5% despite the fact that the French bank confirmed last Friday that it will not be calling the bond on 15 December 2009.

Triple-B and cyclical credits may underperform, says Goldman
In their latest research, Goldman Sachs credit strategists reported that lower-rated names and credits of cyclical sectors show a pattern of sensitivity to mutual fund flows, while bonds with concentrated ownership by mutual funds are not necessarily sensitive to flows.

Buy iTraxx super-senior protection, says BofA/Merrill
In light of central banks’ intentions to sustain base rates, Bank of America/Merrill Lynch credit derivatives strategists recommend buying protection on the iTraxx super-senior tranche.

BNP Paribas paints mixed picture for bank capital
Highlighting some of the uncertainties for financial issuance in 2010, BNP Paribas’ weekly credit research notes that issuance should stay strong for senior issuance.

Drop restructuring for CDS index trades, posits Bank of America/Merill Lynch
Bank of America/Merrill Lynch credit analysts posit a compromise for the restructuring credit event.

Post-distressed exchange credits outperform, says BofA/Merrill
Bank of America/Merrill Lynch credit analysts conclude that both their existing and new bonds returned 91% so far year-to-date.

Goldman closes out correlation short recommendation
Goldman Sachs credit strategists closed their investment grade short correlation trade yesterday

Barclays forecasts 2010 new issuance at $750 billion
Barclays Capital analysts expect a decline in gross fixed-rate issuance in 2010, to around $750 billion.

Buy Gazprom 2015 bond, recommends UniCredit
UniCredit analysts recommend buying Gazprom’s 2015 bond.

Portfolio managers pushed into high-beta hunt, says Goldman Sachs
Record-setting flows into investment grade and high yield mutual funds this year have led Goldman Sachs credit strategists to suspect that resulting mandates have left portfolio managers with no choice but to chase high-beta credits.

Switch from Renault to Fiat bond, says UniCredit
UniCredit analysts recommend switching from Renault’s bond into the Fiat’s bond.

Moody's expects high yield defaults to peak at 12.5%
Moody’s expects the global speculative default rate to peak at 12.5% by the end of this month.

A new capital cushion instrument is born, says BNP
With the recent announcement of Lloyds’ exchange offer for new enhanced capital notes (ECNs), BNP Paribas credit analysts suggset that these instruments, called contingent convertibles (“cocos”) may be better suited to act as a capital cushion for banks.

Maintain credit positions for sluggish recovery, recommends Deutsche
Investors should maintain credit positions for now, while accumulating long-spread positions by either selling treasuries, or paying fixed on interest rate swaps, says Deutsche Bank

Lower demand for govvies will tighten corporate spreads, says JP Morgan
JP Morgan credit analysts point to a potentially significant imbalance between government bond demand and supply in 2010, which will put upward pressure on bond yields and lead to tighter corporate spreads.

Dexia exercises no-call for 18 November
BNP Paribas analysts report that Dexia has confirmed that it will not be calling its upper tier-two 6.25% bond on 18 November.

Goldman Sachs downgrades US Steel
Goldman Sachs strategists dongraded US Steel from outperform to underperform.

UniCredit recommends CDS pair trade in electricity sector
UniCredit analsts recommend a credit default swap pair trade on Edison and Gas Natural, by buying five-year CDS on Edison.

CIT files for prepackaged bankruptcy
CIT Group and CIT Group Funding filed for a pre-packaged, chapter 11 bankruptcy on Sunday at the US bankruptcy court for the southern district of New York.

RBC downgrades Telecom Italia's eurobonds
RBC credit analysts downgarded Telecom Italia's euro-denominated cash bonds from sector perform to underperform.

Goldman identifies refi-risk corporate curve opportunities
In its credit research this week, Goldman Sachs posited potential curve steepeners, identifying names with higher-than-normal refinancing risk.

ING likely to pay hybrid coupons, says BNP Paribas
Commenting on ING's debt restructuring, BNP Paribas analysts highlight the likelihood of the bank paying coupons on its hybrid securities.

RBC downgrades BSkyB on bond valuation
RBC credit research downgraded British Sky Broadcasting from outperform to sector perform.

Extension premium in lower tier-two's remain, say BNP Paribas
BNP Paribas analysts claim that lower tier-two bonds are still attractive, despite the reduction in the extension premium seen in recent months.

Crossover repricing likely with rising default rate, says BNP Paribas
Contending that the risk premium in Crossover is shrinking quickly, BNP Paribas analysts point to the possibility of repricing should default rates surge beyond rating agencies’ current estimates.