Tyco Paper Called A Bargain After Rumor Sends Spreads Out

  • 13 Jan 2002
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Tyco International paper is being called a bargain after a Wall Street Journal article last week caused its bonds to widen. The article cited an obscure newsletter called SEC Insight, which discussed allegations of an impending Securities and Exchange Commission investigation. Tyco's 5.5% of '08 euro-denominated bonds widened by 10 basis points to about 135-145 over German bunds. The bonds usually trade between 120 and 130 over. The company's 5.8% of '06 dollar bonds widened by 30 basis points to between 160 and 165 over Treasuries.

Steve Altman, New York-based analyst at Commerzbank Securities, says the bonds should be a core holding. He echoed other analysts quoted in the media in blaming the rumors on short sellers looking to prey on investors still wary from last year's Enron fiasco. Altman notes that Tyco will have its first quarter earnings conference call this week and he is expecting the company to deliver positive news then.

  • 13 Jan 2002

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 %
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1 Citi 80,818.31 235 11.64%
2 Bank of America Merrill Lynch 65,088.22 185 9.37%
3 Wells Fargo Securities 56,145.09 163 8.08%
4 JPMorgan 53,381.65 156 7.69%
5 Credit Suisse 44,872.46 115 6.46%