Latest news
Latest news
Norton Rose Fulbright and Katten have added to their legal teams
Asset manager wants to offer more products to institutional investors
More articles
More articles
-
At least two portfolio managers say they are considering shifting their positions in auto credits because spreads have begun widening in the sector after a three month rally. David Killian, portfolio manager at Stone Ridge Investment Partners in Malvern, Pa., says he is considering swapping out of 10-year General Motors paper to pick up a similar yield in five-year maturities. He says he would add GM because that is the auto credit in which he is currently lightest. He wants to wait and see if the name weakens further. Last Friday, GM's 6.125% of '07 were trading at 146 over five-year Treasuries. He says the notes were at least 50 basis points wider some three months ago.
-
Debbie Grosser has left Salomon Smith Barney, where she was a director and corporate bond analyst covering the utility sector. A person familiar with the firm's plans says it has not yet decided what to do about a possible replacement. Calls to Robert Waldman, head of corporate bond research, were referred to Mary Ellen Hillery, a firm spokeswoman, who confirmed that Grosser has left but declined further comment.
-
Alan Peterson has joined Aetna Inc. in Hartford, Conn. as a portfolio manager overseeing the firm's roughly $500 million in high-yield assets, according to people with knowledge of the situation. He replaces Jean LaTorre, who was promoted to head of fixed-income after Tim Corbett left for Hartford Insurance Co. earlier this year. Peterson's last position was as high-yield portfolio manager for CIGNA, which has since spun off and renamed its asset management arm as TimesSquare Capital Management. However, he left that firm close to a year ago. Peterson did not return calls, and LaTorre declined comment.
-
Bear Stearns has hired Ian Jaffe, a senior bank and finance analyst, from Morgan Keegan & Co. Earlier this year, Bear Stearns lost both John Otis, a senior bank analyst, and Ann Maysek, a senior financial institutions analyst, to Deutsche Bank (BW, 3/13). Doug Colandrea, who recently joined the firm from Morgan Stanley (BW, 5/26) and has taken over as investment-grade research chief, says Jaffe will cover at least commercial banks and brokerage firms. He is still determining whether to hire an additional analyst to cover finance companies, he says.
-
As analysts on the sell-side and at ratings agencies have been caught off guard by troubles at companies such as Enron, Tyco International and Adelphia, buy-siders say they are taking matters into their own hands. The buy-siders say they are increasingly exploring alternative means of gathering credit information in a climate where each week seems to bring a different company with an off-balance sheet skeleton in its closet.
-
The success of a bond offering last week to fund a joint chemical venture between Chevron Texaco and Phillips has surprised two senior analysts: a buy-sider at a large East coast firm and a sell-sider. The Chevron Phillips Chemical Company's 5.375% notes of '07 (Baa1/BBB+) was upsized to $500 million from $400 million, and received a very strong rating from both Standard & Poor's and Moody's Investors Service, both analysts acknowledge.
-
The high-yield market was softer overall last week, though cable credits (ex-Adelphia) enjoyed a slight rebound. Early in the week, rumors continued to circulate that Paul Allen, Charter Communications largest shareholder, might buy back some of the company's bonds, or even take it private. Here was some other action:
-
Seneca Capital Management has made a number of new hires, according to Gail Seneca, the San Francisco buy-side firm's cio and ceo. They are Tom Haag, a high-yield portfolio manager, Troy Grande, a mortgage- and asset-backed portfolio manager, Fred Goetsky, a corporate bond analyst, Cory Kilpack, a credit analyst from American General, and Bob Bishop, a corporate bond trader and analyst. Seneca says she now considers the firm fully staffed.
-
Tech, telecom, and cable names all took a beating last week, or as one trader put it: "If it beeped or flashed, it crashed." Energy, chemicals, and gaming were all relatively quiet. Airlines were slightly weaker due to the "dirty bomb" scare. Here is some other action.