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CDS Movers
CDS Improvers - 20 August 2008
| Ticker | CLIP | Name | Doc Clause | 5Y Today | Daily Chg (bp) | Weekly Chg (bp) | 28 Day Chg (bp) |
|---|---|---|---|---|---|---|---|
| UKRAIN | 993A96 | Ukraine | CR | 449 | -12 | 33 | 63 |
| HPT | 4I516S | Hospitality Pptys Tr | MR | 522 | -12 | 7 | 40 |
| KAZ | Y29ECH | Kazkommertsbank JSC | CR | 800 | -10 | -25 | 105 |
| KAZAKS | 4CECC7 | Rep Kazakhstan | CR | 253 | -10 | 9 | 46 |
| AIG-IntLeaseFin | 49EGB9 | Intl Lease Fin Corp | MR | 422 | -9 | 22 | 38 |
| FHLMC | 343A80 | Fed Home Ln Mtg Corp | MR | 41 | -8 | -7 | 1 |
| FNMA | 3E48EV | Fed Natl Mtg Assn | MR | 41 | -7 | -7 | 1 |
| MWD | 678B8A | Morgan Stanley | MR | 230 | -7 | 16 | 21 |
| SANYO | 8I333B | SANYO Elec Co Ltd | CR | 114 | -5 | 1 | 2 |
| CIT | 137AD9 | CIT Gp Inc | MR | 784 | -4 | 20 | 0 |
UKRAIN / KAZ / KAZAKS - Ukraine's spreads regained some ground after widening sharply this month. Russia's invasion of Georgia has sparked fears that the regional giant could use the momentum to instigate actions against other neighbours, particularly Ukraine. Russia "leases" the port of Sevastopol in the Crimea region of Russia, where the bulk of its Black Sea naval fleet is based. Crimea, like Georgia's South Ossetia, is predominantly pro-Russian and many fear that the region could be annexed by Russia. Both Ukraine and Georgia have angered Russia by seeking to join NATO, a desire backed by the US but receiving a more mixed response in Europe. Ukraine's spreads could tighten if the conflict is resolved and Russia's troops pull back from Georgia. However, if the west proves powerless to influence Russia then its spreads could blow out further.
HPT - US REIT Hospitality Properties Trust tightened on no firm news. The company posted worse than expected results earlier this month, leading to its spreads breaching the 500bp level.
AIG-IntLeaseFin - International Lease Finance Corp, the aircraft leasing division of AIG, still trades at a significant risk premium to its parent, reflecting structural subordination and uncertainty over its future.
CDS Deteriorators - 20 August 2008
| Ticker | CLIP | Name | Doc Clause | 5Y Today | Daily Chg (bp) | Weekly Chg (bp | 28 Day Chg (bp) |
|---|---|---|---|---|---|---|---|
| IACI | 48DAAY | IAC InterActiveCorp | MR | 561 | 27 | 53 | 84 |
| AIFUL | 008FAQ | Aiful Corp | CR | 729 | 27 | 86 | 26 |
| CIBN | HI57CO | Ciba Hldg Inc | MM | 300 | 22 | 46 | 58 |
| MGIC | 5A7AC9 | MGIC Invt Corp | MR | 928 | 22 | 48 | 62 |
| SLMA | 7FC86R | SLM Corp | MR | 465 | 19 | 35 | 33 |
| HIW-RealtyLP | 4H43AA | Highwoods Rlty LP | MR | 290 | 15 | 27 | 56 |
| GENT | Y08FB8 | Genting Bhd | CR | 208 | 14 | 26 | 28 |
| MET | 5EA6BX | MetLife Inc | MR | 208 | 13 | 52 | 85 |
| MQB | 5AB67W | Macquarie Bk Ltd | MR | 226 | 12 | 15 | 18 |
| FXJ | QTA827 | FAIRFAX MEDIA Ltd | MR | 273 | 11 | 18 | 13 |
IACI - IAC Interactive's spreads widened ahead of its official break-up today. The conglomerate is splitting into five separate independent companies, spinning off TicketMaster, HSN, Interval International and Lending Tree, leaving what's left of IAC. Interval is expected to be the sole successor for CDS contracts when a bond exchange is completed immediately after the spin-off.
AIFUL - Aiful Corp and other high-beta names in Japan widened amid concerns over the health of the US financial system. Japanese consumer finance firms are among the most volatile in the market and are particularly sensitive to macro development abroad.
CIBN - Swiss specialty chemicals maker Ciba Holding widened significantly after S&P downgraded its rating to BBB- from BBB. The agency said the action reflected the deterioration in Ciba's profitability and cash flow generation and its commitment to a shareholder-friendly financial policy. S&P left Ciba on negative outlook, meaning that its inclusion in the next roll of the Markit iTraxx Europe index is in doubt.
MGIC - MGIC's cost of protection continued to climb and is now at its widest level since mid-July. Housing related credits have been affected by speculation surrounding Fannie Mae and Freddie Mac, in particular rumours that they will have to be bailed out by the government. Poor housing figures on Tuesday also weighed on the sector.
SLMA - Sallie Mae's spreads widened after it announced that it had received federal funding that will help it make about $20 billion in loans this academic year. The slump in securitisation has triggered fears of a possible loan shortage.
