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S&P

High Yield Déjà Vu? Not Quite Yet

It’s been quite a year to date for leveraged finance. Improving economic data, increased risk appetite and a supply/demand imbalance has driven valuations starkly higher. At the time of writing, the Merrill Lynch European High Yield Index is up a whopping 75%, the average bid for leveraged loans in Europe has risen by around 50% from its lows earlier in the year, and the high yield new issue ma…

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S&P thinking about downgrading Moody’s

The ratings agencies are at it again. Yesterday, S&P (the largest credit ratings agency) announced that it has placed Moody’s (its biggest competitor) on credit watch negative. S&P cited one of the reasons as being the computer bug that is believed to have resulted in Moody’s accidentally giving AAA ratings to some Constant Proportion Debt Obligations (CPDOs), a form of structured credit. Accor…

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