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The leveraged buyout boom and the increasing number of companies delaying their reporting of financial statements have led to a higher number of funds trading on the assumption that issuers may breach bond covenants, according to panelists speaking at the Strategic Research Institute's 8th Annual Distressed Debt Investing Forum in Las Vegas Nov 16-17.

This chart, provided by Citigroup Global Markets, tracks bid-ask prices for par credit facilities that trade in the secondary market.

Investors looking for new ways to apply loan-only credit default swaps are currently looking at loan portfolio synthetic tranche trades.

The following charts show the top five advancers and decliners in terms of % moves in the loan, bond and credit default swap markets for the previous week.

As many as eight constituent names linked with leveraged buyouts are expected to drop out of the on-the-run investment-grade CDX index when it rolls in March and this could see the expiring index series buck an established trend by trading wider to the replacement series.

The Royal Bank of Scotland has hired two structured credit and derivative strategists and may add two more next year.

Toyota Motor Credit has entered a swap with Deutsche Bank to hedge a seven-year note linked to the Standard & Poor's 500.

Swedish insurer Folksam is looking to increase derivatives usage within its SEK175 billion (USD24.67 billion) of assets under management.

C-BASS Investment Management, a subsidiary of New York-based asset-backed collateralized debt obligation manager Credit-Based Asset Servicing and Securitization, is marketing its first hybrid synthetic and cash CDO.

A handful of dealers are looking to introduce constant proportion debt obligations to the Canadian market.

London-based BlackSquare Capital, which manages a fund of funds comprised solely of Caxton Associates investments, is kicking off a German certificate in January.

The Blackstone Group's USD20 billion leveraged buyout of real estate investment trust Equity Office Properties turned the spotlight again on market participants pushing for cancelable contracts in the event of credit-default swap orphaning.