Low LCDS recoveries draw fire as Sanitec auction disappoints

Sanitec, the EQT-owned Finnish maker of bathroom fittings which became the first credit to default on the LevX index last month, scored very low recovery rates on its debt after the settlement price was determined in the LCDS auction today. The recovery rates were determined as 33.5% for the first lien debt, and as low as 4% for the second lien. Secondary traders warned that the outcome of the auction was not just worrying for Sanitec lenders, but was indicative of a growing trend of shrinking recovery rates.

  • 05 Feb 2009

Sanitec’s senior debt has traded up, however, from the mid-20s to the mid 30s in the last week.

Market participants felt that the low levels of recovery on Sanitec’s debt was partly due to market technicals.

“Recoveries are now one minus the recoveries of the old days,” said a ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 79,222.71 230 11.49%
2 Bank of America Merrill Lynch 65,088.22 185 9.44%
3 Wells Fargo Securities 55,825.35 161 8.10%
4 JPMorgan 52,873.25 155 7.67%
5 Credit Suisse 44,197.08 113 6.41%