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  • MOODY'S Asian structured finance analysts have assigned an A2 rating to a $100m collateralised bond obligation devised by Morgan Stanley Dean Witter. Cheyne CBO I Ltd was structured by Morgan Stanley's London office, but some 57% of the credit exposure is to Asian obligors.
  • n Morgan Stanley Dean Witter is believed to have sold a large proportion of the Formula 1 Finance bonds it holds. Bankers said this week that the bookrunner had kept in touch with investors throughout the restructuring of the now $1.4bn securitisation of broadcasting and promotional rights from international motor sport for UK firm Formula One.
  • UK based passenger transport group Stagecoach may use securitisation to refinance part of the $1.237bn cost of its acquisition of US bus company Coach USA. The two companies announced this week that a new Stagecoach subsidiary in the US will make a tender offer of $42 per share in cash for the common stock of Coach USA, and that Stagecoach will assume the US company's $571m of net debt.
  • Last week's Learning Curve proposed a very general model for the evolution of energy prices that has been found to provide a good representation of reality.
  • The poor performance of many subordinated debt issues in 1998 deterred investors from moving down the credit curve.
  • Investment banks have quickly realised that, to compete in the new credit markets of Europe, they have to provide constant research on the credits which form it.
  • The pace of new issue activity in Europe's nascent high yield markets is still more akin to the snail than the hare. And its range of credits lacks diversity, with investors keen to buy paper outside the start-up telecoms sector.
  • The combined effect of a new currency regime in Europe and the stabilisation of the markets after last year's emerging markets crises has been to slacken demand for supranational and government agency paper.
  • The new European corporate market has got off to a flying start, with record breaking deals and volumes ensuring the sector has grabbed the headlines this year.
  • Pfandbrief issuers have ridden a wave of demand this year as portfolio reallocation in the euro zone has led to strong demand for almost all types of spread product.
  • The development of a credit culture among European fund managers took a long time to get underway. The advent of the euro has made its momentum unstoppable.
  • Devolution and the need to diversify their sources of funding are prompting Europe's regional and municipal credits to consider the new euro bond market.