US CLO refis cut triple-A spreads by 24.5bp on average, finds Moody's
US CLO refinancings in the last year have resulted in triple-A funding costs falling by an average of 24.5 basis points, according to research published by Moody’s yesterday.

Risky portfolios pay off for 2013 CLOs, finds Wells Fargo
2013 CLOs with the riskiest portfolios have paid the greatest returns to equity, but they are risky in different ways

CLO investors are not getting the full picture on cov-lites, according to report
A new research piece by Moody's Analytics highlights the gap between reported CLO cov-lite concentrations and true cov-lite concentrations in some CLOs.

Euro 1.0 CLO mezz is undervalued, says Citi
Citi highlights junior debt from legacy European CLOs as one of its top trades in research published last week

Non-US banks have stepped up senior US CLO purchases, says RBS
Non-US banks now account for over one-third of buyers of US CLO triple A bonds, according to a report published by RBS last week

High leverage spells spread-widening for Asian credits, SocGen says
Asian corporate credit spreads are likely to widen next year as many companies reach unsustainable levels of leverage

European high grade credit will return 1.5% in 2013, says JP Morgan
Credit returns will be lower in 2013 than 2012, JP Morgan says, though CLOs look attractive

UK asset manager hires senior credit analyst in Edinburgh
UK asset manager Scottish Widows Investment Partnership announces hire of Neil Tong to credit research desk. 

Legal & General announces new research hire
US manager announces hire of senior research analyst, focusing on the technology, media and telecommunications sectors.  

Europe 2010 high yield issuance to top $50 billion, says UniCredit
UniCredit’s credit research today anticipates over $50 billion of high-yield new issuance in 2010.

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.

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.

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.

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.

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.

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.

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.