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April 3, 2009

 Past Issues

Cover Story

Now You See It, Now You Don't

Standard & Poor's withdrew Houston-based Ion Geophysical's credit rating in March and did the same for Oklahoma City climate controls maker ThermaClime in February. Both companies asked the rating agency to do so. Last month, Fitch Ratings downgraded Novelis Inc., offered a bleak outlook on the manufacturer of aluminum sheet and foil products and announced it was no longer rating the company. In March, Moody's Investors Service downgraded FGIC Corp. and gave the bond insurer a negative outlook. Moody's didn't specify why it stopped rating FGIC, saying only that it was for 'business reasons.' What gives?

Capital Markets

In Hindsight

A listing of notable developments in the capital markets during the past week.

Prepping For The Recovery

The public securities markets have experienced unprecedented volatility over the last several months and have essentially been unavailable for small- and middle-capitalization companies that need to raise funds. Nevertheless, a large number of public companies still need to raise capital for current working capital needs, to refinance debt that is coming due, to shore up their balance sheets and comply with financial covenants and even for growth. The question arises of what these companies should be doing now.

Editorial

The More Things Change ...

One really neat thing about leading a publication that's been around for three-quarters of a century is that, with just a trip down the hall to the dusty, bound copies of IDD, you can find out what was going on in the dealer community in the midst of the Great Depression. And I have some news for you: It was eerily similar to what's going on now.

Fixed Income

Turmoil Leads Some To Go Solo In The Muni Market

When UBS Securities closed its municipal bond unit last year, managing director Matthew Roggenburg considered his options. He thought about trying something related to his work, perhaps hooking up with another investment bank. He also thought about trying something new, like setting up an aerial adventure park in New Jersey's Delaware Water Gap. Eventually, he decided on something both related and new: starting his own firm.

N.Y. Nonprofit Looks to DASNY, Not IDA

An Albany, N.Y., area resident who wanted to learn to play the bagpipes, learn traditional Irish or Scottish dance, or just get in touch with his or her Celtic heritage could pop on over to the Capital District Celtic Cultural Association for classes. Up until six months ago, that is.

Healthcare

Not All Hospitals Are Risky Bets

Death and disease know no recession. Hospitals do. Richard Ciccarone, chief research officer at McDonnell Investment Management LLC, believes concerns about some hospitals in this recession have punished an entire sector of municipal bonds.

Infrastructure

Florida Reopens Process on Miami Tunnel P3

The $1.2 billion Port of Miami Tunnel project will undergo another procurement process, Florida's Department of Transportation secretary said late Wednesday.

Investment Banking

Quoted

Notable quotes from capital markets participants during the past week.

More Big-Name Bankers Going Back To School, In A Way

Forget Rodney Dangerfield. Lately, it's investment bankers who have been leaving Wall Street to go back to school.

Generation Boutique

Investment banking professionals often use times of market distress to reassess their careers. In fact, it is during times of economic difficulty that household name boutiques, including Greenhill & Co. and The Blackstone Group, have emerged.

Looking Ahead

A calendar of events scheduled for the coming week.

Leveraged Finance

Same Old, Same Old In Covenants

Tougher times call for tougher covenants -- or maybe not. An examination of covenants on new deals this year shows that issuers can get away with using the bubble-era covenant structures from a few years ago, if they're in the right sector.

M&A

The New Math: Education M&A?

It was the 19th century politician Horace Mann who first said that education, 'beyond all other devices of human origin, is the great equalizer of the conditions of men.' It's an idea that still holds true, and perhaps assumes a more ambitious meaning today, as the federal government is now counting on education to not only empower individuals but also help shake the economy out of its stupor.

Personnel File

Blackstone Expansion? 'Oui':

The Blackstone Group opened an office in Paris, expanding its international corporate mergers-and-acquisitions as well as restructuring advisory business with the hire of Jean-Michel Steg as a senior managing director. Steg, who was formerly Citigroup's head of banking in France and Belgium, will oversee Blackstone's Paris office and French advisory team, which will report to the firm's London office.

Private Equity

A New Lifeline For PE?

The debt crunch has taken its toll on the traditional take-private buyout, but that doesn't mean publicly held companies don't offer plenty of deal flow for private equity firms. An increasing trend towards unloading business units may be where the PE industry finds the bulk of its work in the near future.

Regulation

House Bill Would Create Regulator for Insurers

Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., introduced legislation yesterday that would establish a 'parallel national system of regulation and supervision' for the insurance industry, including financial guarantors in the muni market.

Volcker to Lead on Reform

The Obama administration has tapped economic adviser and former Federal Reserve chairman Paul Volcker to lead a task force that will explore how to streamline the tax code, but it's unclear if the panel's recommendations will have any impact on the municipal bond market.

Structured Finance

Talf Makes Its Mark in ABS, For Now

Last month saw asset-backed securities activity accelerate, spurred by the Federal Reserve's Term Asset-Backed Securities Loan Facility, or Talf.

Securities in Registration

Securities In Registration

The following is a list of planned new offerings that have been registered with the SEC in the past month, but have not yet come to market. Deals that have been withdrawn are excluded.