Pre-migration untagged articles

Moody’s has downgraded two collateralised fund obligations and put eight on review for downgrade after the market turmoil engulfed hedge funds.

Bank of America this week said it is suing Bear Stearns Asset Management and its former employees Matthew Tannin, Ralph Cioffi and Raymond McGarrigal for breach of contract and fraud over a $4bn CDO squared which Bank of America structured for Bear Stearns in May 2007.

Moody’s has downgraded two monolines and put one on review for downgrade, as increased loss assumptions for subprime mortgages swallowed the capital they had gained from restructurings.

After the carnage caused in the sovereign, supra and agency market by the launch of the first government-guaranteed bank bonds, covered bond bankers have been weighing the impact the new asset class could have on their market.

UK and Irish banks found a deeper investor base in the European commercial paper market for their government guaranteed paper this week, while Nykredit Bank has launched a CP programme guaranteed by the Danish government.

The Carlyle Group and Deutsche Bank are marketing a Eu500m synthetic CLO and expect to close the transaction in the next few weeks despite volatile LCDS pricing making it difficult for managers to get deals off the ground.

The UK’s Financial Services Authority’s announcement last week of a review of its position on covered bonds is believed to have been prompted by the unprecedented interplay between covered bond structures, deteriorating cover pools, central bank funding and rating methodologies that the crisis has thrown up.

The unintended consequences of Germany’s guarantee of bank deposits hit home this week as investors pulled hundreds of millions of euros from open-ended real estate investment funds.

Liberty Tire Co.'s $131 million credit facility is still struggling to close one month after its Oct. 2 launch as borrowers and lenders try to agree on terms.

Determining accurate pricing remains difficult in this market, a panel of traders said at Thursday’s Loan Syndications and Trading Association annual conference. Barry Zamore, Credit Suisse’s head of par loan trading, said his bank has had to dedicate more time and manpower to pricing, especially of smaller, less frequently traded loans.