Use Swaptions to bet U.K. Interest Rates Have Peaked, Credit Suisse Says

(Bloomberg) -- Investors should use swaptions to bet
the Bank of England won't raise benchmark interest rates beyond
5.75 percent because inflation has peaked, according to Credit
Suisse.

Prices for swaptions, options on interest rate swaps,
signal traders expect further rate increases. Investors can
profit with swaptions if benchmark rates hold steady, analysts
at Credit Suisse, Switzerland's second-biggest bank, said in a
strategy note.


Read more at Bloomberg Currencies News

Global Stock Sell-off to Be Short-Lived, Credit Suisse Strategists Say

(Bloomberg) -- The rise in bond yield spreads
doesn't amount to a credit crisis and losses in equities should
be short-lived, according to Credit Suisse Group's equity
strategists.

Corporate credit spreads, or the difference that companies
pay to take on debt relative to what governments would, have
risen too far in recent days, a team of strategists led by Andrew
Garthwaite wrote in a note today. Companies are earning enough
money and private-equity firms have enough investment to sustain
takeovers, buybacks and share gains, they wrote.


Read more at Bloomberg Stocks News

European Stocks May Drop, Led by Credit Suisse, Deutsche Bank, Infineon

(Bloomberg) -- European stocks may fall for a fourth
day on concern that financing difficulties in the credit market
will stifle mergers and acquisitions.

Credit Suisse Group and Deutsche Bank AG may follow their
U.S.-traded securities lower. Infineon Technologies AG, Valeo SA
and LVMH Moet Hennessy Louis Vuitton SA may drop after earnings
missed analysts' estimates.


Read more at Bloomberg Stocks News

GLOBAL MARKETS-Stocks, dollar stabilise after battering

(Reuters) - Credit spreads narrowed after blowing out earlier this week
on troubles at the U.S. high-risk subprime mortgage sector. U.S.
stock futures pointed to a firmer open on Wall Street a day
after posting their worst one-day performance since March.




The FTSEurofirst 300 index turned slightly into
positive territory after hitting a one-month low. U.S. stock
futures also rose after Web retailer Amazon.com
reported strong profit and raised its outlook.


Read more at Reuters.com Bonds News

UPDATE 1-S.Korea pension picks foreigners to manage $2 bln

(Reuters) - The state-run pension agency, which has more than $200
billion under its management, said in a statement it plans to
entrust $1 billion with the World Bank, $500 million with a
Morgan Stanley unit and $450 million with a Credit Suisse
unit.




It said the plans were part of its strategic alliance formed
with Morgan Stanley Investment Management and Credit Suisse Asset
Management.


Read more at Reuters.com Bonds News

European Stocks May Drop; Credit Suisse, Allianz, Atos Origin Might Fall

(Bloomberg) -- European stocks may fall after U.S.
benchmarks tumbled the most in four months yesterday on concern
defaults on home loans are rising.

Credit Suisse Group, Allianz SE and Royal Bank of Scotland
Group Plc might drop after their U.S.-traded securities declined.
Atos Origin SA may also slide after Deutsche Bank AG recommended
selling shares in France's second-largest computer services
company. GlaxoSmithKline Plc may be active before its second-
quarter earnings report.


Read more at Bloomberg Stocks News

JGB futures hit 7-wk high on US credit market woes

(Reuters) - "The market's focus is not on the BOJ but U.S. credit market
developments," said Kenro Kawano, a JGB strategist at Credit
Suisse. "I think the market should be very firm and rise
further."




Kawano said the widening of corporate bond spreads abroad was
also starting to spark a bit of weakness in Japanese credit
markets.


Read more at Reuters.com Bonds News

Italy's S&P/MIB Index Rises , Paced by UniCredit; Impregilo Shares Gain

(Bloomberg) -- Italy's S&P/MIB Index rebounded from
its largest one-day drop in two months. UniCredit SpA and
Impregilo SpA paced the advance.

The S&P/MIB Index added 135, or 0.3 percent, to 41,608 at
9:11 a.m. in Milan as 28 stocks rose, 11 fell and one was
unchanged. Futures expiring in September climbed 88, or 0.2
percent, to 41,875.


Read more at Bloomberg Stocks News

GLOBAL MARKETS-Equities rebound but credit worries remain

(Reuters) - Credit spreads in Europe tightened after widening some 30
basis points a day earlier.




The FTSEurofirst 300 index of top European shares
rose 0.8 percent, as did London's FTSE 100 index ,
Frankfurt's DAX and Paris's CAC 40 .


Read more at Reuters.com Bonds News

Bear Stearns Tells Investors in Failed Hedge Funds There's `No Value Left'

(Bloomberg) -- Bear Stearns Cos. told investors in
its two failed hedge funds that they will get little if any money
back after ``unprecedented declines'' in the value of AAA rated
securities used to bet on subprime mortgages.

Estimates show there is ``effectively no value left'' in the
High-Grade Structured Credit Strategies Enhanced Leverage Fund
and ``very little value left'' in the High-Grade Structured
Credit Strategies Fund, Bear Stearns said in a two-page letter.
The second fund still has ``sufficient assets'' to cover the $1.4
billion it owes Bear Stearns, which as creditor gets paid back
first, according to the letter, obtained yesterday by Bloomberg
News from a person involved in the matter.


Read more at Bloomberg Bonds News

AmeriCredit prices $1.5 bln in asset-backeds

(Reuters) - Lead managers on the transaction are Barclays Capital,
Credit Suisse and Deutsche Bank Securities. The co-managers are
JPMorgan, Lehman Brothers, RBS Greenwich Capital and UBS
Investment Bank.




Read more at Reuters.com Bonds News

Rio Tinto May Borrow as Much as $40 Billion to Finance Alcan Acquisition

(Bloomberg) -- Rio Tinto Group will borrow as much
as $40 billion to finance the acquisition of aluminum producer
Alcan Inc., according to Moody's Investors Service.

Rio Tinto, the world's third-largest mining company, hired
Royal Bank of Scotland Group Plc, Deutsche Bank AG, Credit Suisse
Group, and Societe Generale SA to finance the $38.1 billion deal,
the London-based company said today in a statement. The all-cash
offer for Montreal-based Alcan will be funded from banks, Moody's
said, which would make it the second-biggest loan in Europe.


Read more at Bloomberg Bonds News

Rio Tinto May Borrow as Much as $38 Billion to Finance Alcan Acquisition

(Bloomberg) -- Rio Tinto Group may borrow as much
as $38 billion, the second-biggest loan in Europe, to finance
the acquisition of aluminum producer Alcan Inc.

Rio Tinto, the world's third-largest mining company, hired
Royal Bank of Scotland Group Plc, Deutsche Bank AG, Credit
Suisse Group, and Societe Generale SA to finance the deal, the
London-based company said today in a statement. The all-cash
offer for Montreal-based Alcan means the company may use bank
loans to finance the entire deal.


Read more at Bloomberg Bonds News

UPDATE 2-Experian Q1 in line, sees subprime woes easing

(Reuters) - LONDON, July 12 - Credit information firm Experian
said on Thursday first-quarter trading was in line with
its expectations despite headwinds in its key markets and said
it expected the impact of U.S. subprime lending woes to ease.




Spun out of conglomerate GUS last year, Experian has been
hit by a decline in unsecured lending in Britain, with fewer
lenders using its services to target new customers, while U.S.
subprime mortgage troubles have knocked its LowerMyBills unit.


Read more at Reuters.com Market News

GLOBAL MARKETS-Subprime woes rattle stocks, credit and dollar

(Reuters) - Credit spreads burst even wider, while investors seeking
safe havens rushed to buy government bonds.




The latest jitters started on Tuesday after two leading
ratings agencies started slashing ratings for more than $17
billion of U.S. mortgage-related debt -- representing around
three percent of the total subprime market.


Read more at Reuters.com Economic News

UniCredit Says Higher Interest Rates Won't Stop East European Lending Boom

(Bloomberg) -- UniCredit SpA will grow profit from its
eastern European banking businesses at least 15 percent annually
over the next two years, driven by a retail lending boom that will
likely survive tightening credit in the region.

UniCredit's 2007 pretax profit from eastern Europe will rise
to at least 2.8 billion euros ($3.9 billion) from 2.4 billion euros
in 2006, Bloomberg calculated based on the Milan-based lender's
forecasts that were published in a report. Credit to retail banking
customers will grow 35 percent annually through 2009, wrote Debora
Revoltella, UniCredit's chief east Europe economist.


Read more at Bloomberg Emerging Markets News

Subprime Losses Devastate Mortgage Securities as Moody's, S&P Say No More

(Bloomberg) -- On Wall Street, where the $800
billion market for mortgage securities backed by subprime loans
is coming unhinged, traders are belatedly acknowledging what
they see isn't what they get.

As delinquencies on home loans to people with poor or
meager credit surged to a 10-year high this year, no one buying,
selling or rating the bonds collateralized by these bad debts
bothered to quantify the losses. Now the bubble is bursting and
there is no agreement on how much money has vanished: $52
billion, according to an estimate from Zurich-based Credit
Suisse Group earlier this week that followed a $90 billion
assessment from Frankfurt-based Deutsche Bank AG.


Read more at Bloomberg Bonds News

Bond bears turn tail in subprime scare

(Reuters) - Credit ratings agency Standard & Poor's stunned markets on Tuesday by warning of possible downgrades to a slew of mortgage-backed debt, boosting Treasuries but sending shivers through the riskier sectors of the fixed-income market.




Even though the economy has bounced back from earlier scares in the subprime sector, which targets borrowers of lower credit quality, this latest bout of jitters should still tamp down yields until the scope of the damage is known.


Read more at Reuters.com Business News

S&P May Cut $12 Billion of Subprime Mortgage Bond Ratings as Losses Rise

(Bloomberg) -- Standard & Poor's said it may cut
credit ratings on $12 billion in bonds backed by subprime mortgages
because losses will rise beyond its previous expectations.

Ratings of 612 classes of residential mortgage-backed
securities were placed on CreditWatch with negative implications,
New York-based S&P said today in an e-mailed statement. The bonds
represent 2.1 percent of the $565.3 billion of similar bonds
rated by S&P during 2006.


Read more at Bloomberg Bonds News

Deutsche Bahn Plans to Sell 12-Year Bonds in Euros, Hires Three Banks

(Bloomberg) -- Deutsche Bahn AG, Germany's
government-owned railway, plans to sell bonds in euros, according
to an e-mailed statement sent by Royal Bank of Scotland Group
Plc, one of the managers of the sale.

Berlin-based Deutsche Bahn also hired Citigroup Inc. and
Credit Suisse Group to manage the sale of the fixed-rate bonds
maturing in 12 years, the statement said. The bonds will be
issued by Deutsche Bahn Finance BV and be guaranteed by Deutsche
Bahn.


Read more at Bloomberg Bonds News