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.

Maturity wall to ensure further refinancings, says Goldman Sachs
Goldman Sachs strategists estimate in their latest report that maturity extensions for $152 billion of debt will be necessary in order to take out the debt coming due between 2011 and 2014, and help reduce the size of the upcoming maturity wall.

US and Europe investment grade inflows diverge, says JP Morgan
JP Morgan’s most recent credit research highlights the divergence between inflows from retail investors to US investment grade credit and inflows to sterling and euro-denominated funds.

Bank of America/Merrill Lynch highlights credit market split
Bank of America/Merrill Lynch highlights the divergence in the credit markets between high-priced new issues and lower cash price secondary bonds.