Pre-migration untagged articles

A deepenging sense of gloom descended on the European bond market this week, keeping a lid on new issuance from financial institutions. A flow of bad news led to the absence of even a single benchmark size issue launched in the public domain.

Japanese and other Asian investors kept the structured note and private placement markets moving this week, though demand for all products and currencies was patchy as market sentiment began badly and deteriorated.

Fitch withdrew its double-A ratings on MBIA and Ambac yesterday. It did so because MBIA and Ambac had stopped giving them private information about their portfolios and had asked Fitch to withdraw the ratings. As credit risk continues to develop Fitch could not rely on public information only.

US dollar swap spreads gapped wider at the end of the week despite the tighter rates in the Treasury market.

BANCA Popolare di Milano hopes to lay the foundations for the obbligazioni bancarie garantite market by launching the first Italian covered bond soon after its roadshow finishes on Monday (June 30).

The credit default swap market is back on the ropes, taking a pounding from four or five different merciless assailants.

The commercial paper market struggled through a mountain of maturing and rolling paper ahead of the half-year turn this week. With money market funds opting to keep their powder dry, not all of the maturing paper was being rolled, said some dealers.

Christopher Cox, the chairman of the US Securities and Exchange Commission, this week proposed removing the way in which credit ratings are hard wired into investment decisions, in a bid to reduce investors’ overreliance on ratings.

Natixis prices Sparc deal

Ralph Cioffi and Matthew Tannin, senior managers of the Bear Stearns hedge funds that collapsed last summer, have been indicted on charges of conspiracy and fraud. The funds lost investors over $1bn.

The LCDX dropped two points below par for the first time since it launched on May 22, 2007.

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.