Free content

Credit traders in Japan believe a recovery rate swap interbank market may emerge in the coming months, following recent initial forays and developments in other trading centers.

UBS has hired Eric Rothman, v.p. in credit derivatives at insurer ACE Guaranty Corp., in a similar role.

U.K. bond managers are waking up to the potential of the credit-default swap market and several, including AXA Investment Managers, Credit Suisse Asset Management and Standard Life Investments, are gearing up to trade the instruments this year, according to DW sister publication Global Money Management.

Credit protection on U.S. satellite giant Intelsat widened last week after news that the company will be sold in a leveraged buyout hit the market.

US and foreign bond issuers took full advantage this week of a schizophrenic US high grade bond market, which has been surging higher even though valuations are already full, spreads are tight, oil prices are rising and the Federal Reserve clearly intends to continue its measured series of rate increases.

--Jill Church, v.p. and controller of dj Orthopedics, on the company cutting the spread on its "B" loan.

The Bond Market Association is seeking feedback from fixed-income industry professionals on a plan that would allow trading in bonds of bankrupt companies.

Credit markets outperformed during the month of July, but already the environment feels so changed as for investors to believe that there is little that can be extrapolated from the result into the remainder of the year.

Fidelity Investments in London is neutral the benchmark on credit ratings and duration and recently moved up the rating curve and down the maturity curve to achieve this position.

Companies including Northrup Grumman, Motorola Inc. and Prudential Financial have sold a slew of unusual high-grade securities in recent weeks.

The Evangelical Lutheran Church in America Board of Pensions is seeking to reduce risk and add yield to its $900 million investment-grade fixed-income fund, said Mark Haney, senior investment manager in Minneapolis.