Convertibles get a soaking

Investors in convertible bonds have been washed out by the storm in debt, equity and derivatives markets, so potential issuers are having to look to other buyers.

Bank deleveraging has barely started

The government bail out packages unveiled across developed countries last month may have prevented the collapse of a host of banks with more toxic assets than equity.

Bond Outlook October 29th

Bond markets are moved back into difficult trading as market making is proving inadequate faced with large-scale liquidation even of quality bonds by funds facing margin calls or redemptions.

The week Wall Street capitulated

In October the credit crunch finally devastated global equity markets as investor panic threatened to bring down all but the very strongest banks.

Bond Outlook October 22nd

As investors move from panic, through shell-shock to quiet reassessment, they should separate the capital market crisis, which governments are solving, from the recession, which they cannot.

Bond Outlook October 8th

The UK Government injecting equity capital (preference shares) into banks before they need to be nationalized outright in panic may signal that exit from the storm is in sight.

CDS: Dead market walking

Rightly or wrongly, credit derivatives will pay the price for failings across the entire credit market.