Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

U.S. Corporate Credit-Default Swaps Fall After July Jobs Report

businessweek.com | August 4, 2013

By Scott Harrison

A gauge of U.S. corporate credit risk declined after a report showed employers added fewer workers than forecast in July, reducing concern the Federal Reserve will slow the pace of its stimulus measures.

The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses or to speculate on creditworthiness, decreased 1.1 basis points to a mid-price of 73.3 basis points at 11:41 a.m. in New York, according to prices compiled by Bloomberg. It rose to 75.1 before the Labor Department reported payrolls increased by 162,000 in July, compared with the median estimate of 185,000 in a Bloomberg survey.

Investors are looking to economic data for signs of when the Fed will begin paring the $85 billion monthly bond-buying program that has bolstered credit markets. Even as the U.S. jobless rate fell to 7.4 percent, the data suggest the central bank will continue its monetary policy measures, according to Scott MacDonald, head of research at MC Asset Management Holdings LLC.

“We didn’t see as much employment generation as expected,” MacDonald said in a telephone interview from Stamford, Connecticut. “The jobs market is still well away from” the Fed’s jobless target, he said.

The credit-swaps index typically falls as investor confidence improves and rises as it deteriorates. The contracts pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt.

 

Dell Swaps

The cost to protect bonds of Dell Inc. (DELL:US) from default jumped as founder Michael Dell agreed to sweeten his proposal to buy the company to as much as $24.9 billion with a special dividend, according to a statement today from the board committee.

Five-year swaps tied to the debt of the PC-maker widened 54.5 basis points to 405 basis points as of 11:43 a.m. in New York, according to data provider CMA, which is owned by McGraw Hill Financial Inc. and compiles prices quoted on the privately negotiated market.

Dell and partner Silver Lake Management LLC are offering a dividend of 13 cents a share on top of an already-increased $13.75-a-share bid for the computer maker.

The average relative yield on investment-grade debt widened 2.9 basis points to 129.1 basis points, according to data compiled by Bloomberg.

 

Bond Sales

The risk premium on the Markit CDX North American High Yield Index fell 8.2 basis points to 364.6 basis points, Bloomberg prices show.

Corporate bond sales in the U.S. dropped 42 percent this week to about $22 billion, with issuance falling below this year’s average.

Halliburton Co. (HAL:US), the world’s largest provider of hydraulic-fracturing services, raised $3 billion to fund share buybacks and Houston-based Kinder Morgan Energy Partners LP (KMP:US) issued $1.75 billion of debt, leading the slowest week since the period ended July 5, according to data compiled by Bloomberg. Sales compare with $37.9 billion last week and a 2013 weekly average of $29.7 billion.

The average relative yield on speculative-grade, or junk-rated, debt widened 9.6 basis points to 559.7 basis points, Bloomberg data show. High-yield, high-risk debt is rated below Baa3 by Moody’s Investors Service and less than BBB- at Standard & Poor’s.

 

Back to August 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:




 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package