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  • Single name and credit specific trading hogged the headlines in the default market this week. For TDC, the Danish telecommunications conglomerate, it was another week of fast and volatile dealing. It rallied about 80bp to 250bp mid-market on Wednesday after the consortium of private equity firms that is buying the Danish telecommunications announced that it was prepared to buy back all the outstanding bonds at par.
  • The much heralded ISDA Novation Protocol, to which 2,000 firms have signed up, will increase the backlog of unconfirmed CDS trades, according to John Lewis, vice president and general manager of Scrittura. "Just signing up to a Novation Protocol doesn't decrease the problem of extreme volumes, it increases it," said Lewis. This is because the protocol doubles the number of trade confirmations in any trade assignment that will be sloshing around the market.
  • Rating: Aa1/AA-
  • Besides the blossoming of convertible bonds this week, mergers and acquisitions also produced a pair of straight equity deals, as JP Morgan closed a Eu1bn open market purchase of TDC shares for Nordic Telephone Co, and Morgan Stanley and Citigroup completed a £75m accelerated placing for Punch Taverns.
  • SECONDARY TRADING
  • The rush of issuance in the corporate bond market continued this week, but the reaction to new issues was mixed as issuers ceded to investors' demands for more generous pricing.
  • Rating: Aa3/A+/AA-
  • HBOR, which will shortly complete a Eu100m five year club loan through Bank Austria, Calyon, DZ Bank, Mizuho and Privredna banka, will raise a syndicated loan of at least Eu250m early in 2006, bankers say.
  • This year the dollar bond market has made top flight issuers an offer they cannot refuse: new investors, benchmark sizes and extremely attractive funding. A colourful array of borrowers from the sovereign, supranational and agency sector has taken up the offer and reinvigorated the market.
  • Rating: Ba3/BB-/BB-