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Citigroup's credit trading team in London has hired a half dozen traders in recent weeks, according to James Higgins, head of European credit trading.

Corporate bond spreads are responding to the ebbs and flows of the U.S. presidential election's homestretch and could widen out if Sen. John Kerry gains in the polls, according to strategists.

The Republic of Turkey last week priced EUR600 million of five-year benchmark notes but didn't give an underwriting slot to Citigroup, a move which has surprised market observers given the firm escorted top Turkish finance officials to meetings with potential investors just a few weeks ago.

Franklin Templeton Investments is moving to take some risk off the table in its high-yield positions, specifically among its holdings in the utility sector.

German sanitary fittings company Grohe is expected to offer the first European high-yield bond of the fall season and last week roadshowed a €335 million offering of senior notes due in 2014.

--John Tierney, investment-grade credit strategist at Deutsche Bank, on the presidential election and its impact on corporate bond spreads.

Investor flows into senior collateralized debt obligation classes are causing bonds to increasingly trade at a premium, but sell-side researchers say investors don't appear to be factoring in the escalating risk of prepayments.

High-grade financial institutions are increasingly taking advantage of investor demand for extra yield by issuing more subordinated debt, and the trend is expected to continue in the coming months if the historically tight spread environment remains pervasive.

Pending legislation that is expected to spark billions in new corporate bond issuance is now expected to be ratified after the U.S. presidential election, according to bankers following the act.

BlueBay Asset Management in London will put up to €200 million in new cash to work in U.S. and European high-yield assets before the end of the year in its long-only fund, according to Anthony Robertson, senior portfolio manager and co-head of high-yield.

State Bank and Trust of Fargo is looking to add value in a tight corporate bond market by investing in first mortgage utility paper and industrials, said Greg Sweeney, portfolio manager of $250 million in investment-grade fixed-income.