Corporate Bond Risk Soars on Absolute Hedge Fund Loss, Failed Buyout Loans

(Bloomberg) -- The risk of owning corporate bonds
soared after a hedge fund co-owned by ABN Amro Holding NV's
Australian unit suspended withdrawals and investors shunned
buyout debt in the U.S. and Europe, credit-default swaps show.

Contracts on 10 million euros ($13.8 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies rose 36,000 euros to 400,000 euros, according to
JPMorgan Chase & Co. The cost of the credit-default swaps, used
to bet of the ability of companies to repay debt, is the highest
in more than two years. The U.S. benchmark CDX Investment Grade
Index jumped $6,000 to $62,750, Deutsche Bank AG said.


Read more at Bloomberg Bonds News

Chrysler Scraps $12 Billion Sale of Loans for Auto Business, Investors Say

(Bloomberg) -- Chrysler abandoned plans to sell
$12 billion of loans to complete its purchase by Cerberus
Capital Management LP after investors balked at purchasing the
high-yield, high-risk debt, according to investors who were
briefed on the decision.

The unit of DaimlerChrysler AG scrapped the sale of loans
linked to its automotive business after failing to find demand,
said the investors, who declined to be named because the terms
aren't public. Banks led by JPMorgan Chase & Co. will assume $10
billion of that debt and Cerberus and DaimlerChrysler agreed to
buy the remaining $2 billion, the investors said.


Read more at Bloomberg Bonds News

Tribune Debt Has 50 Percent Default Risk, Higher Than Ford's, Swaps Show

(Bloomberg) -- Tribune Co. has a 50-50 chance of
missing interest payments on some of the $13 billion in debt it
will have after real estate investor Sam Zell buys the company,
trading in the company's credit-default swaps shows.

Prices of the swaps, financial contracts used to speculate
on a company's ability to repay debt, have jumped $331,000 since
the first step in the sale was completed in May. It costs
$770,000 to protect $10 million of Tribune bonds for five years,
according to CMA Datavision, indicating a more than 50 percent
risk of default. That's up from 32 percent on May 24, based on a
JPMorgan Chase & Co. pricing model.


Read more at Bloomberg Bonds News

JPMorgan's Dimon Sees `A Little Freeze' in Lending for Leveraged Buyouts

(Bloomberg) -- JPMorgan Chase & Co. Chief Executive
Officer Jamie Dimon said demand for leveraged buyout debt is
drying up and banks may be left holding more loans that they
can't sell.

There is ``kind of a little freeze in the marketplace,''
Dimon said on a conference call with investors to discuss the New
York-based bank's second-quarter earnings. ``If you see this
continue you will see the Street taking on a lot of bridge loans
and more aggressive repricing of those things.''


Read more at Bloomberg Bonds News

UPDATE 1-JPMorgan's Dimon slams "equity bridge loans"

(Reuters) - NEW YORK, July 18 - JPMorgan Chase & Co.
Chairman James Dimon on Wednesday called the practice loaning
cash upfront on leveraged buyout deals a terrible idea.




Dimon, one of Wall Street's most influential bankers,
criticized so-called equity bridges during a conference call
with analysts and investors.


Read more at Reuters.com Mergers 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

Rosneft Cancels Sale of Dollar-Denominated Bonds, Bankers Organizing Say

(Bloomberg) -- OAO Rosneft, Russia's biggest oil
producer, canceled its plan to sell dollar-denominated bonds,
according to bankers organizing the offering who asked not to be
identified because the decision hasn't been publicly disclosed.

Moscow-based Rosneft had hired ABN Amro Holding NV,
Barclays Capital, Citigroup Inc. and Morgan Stanley to arrange
the sale, according to an e-mailed statement sent by Morgan
Stanley on July 4. BNP Paribas SA, Calyon, JPMorgan Chase & Co.
and Goldman Sachs Group Inc. were also organizing the sale.


Read more at Bloomberg Bonds News

FACTBOX-Asian investment banking fees hit H1 record

(Reuters) - The following is a ranking of the top 5 Asia Pacific
investment banks by revenue in the first half, according to
Dealogic, and a breakdown of revenue by type of deals.




H1
2006
BANK NET REVENUE PCT MKT SHR RANK
UBS $390 million 12.7 2
JPMorgan $196 million 6.4 3
Morgan Stanley $187 million 6.1 6
Goldman Sachs $171 million 5.6 1
Citigroup $167 million 5.4 5
NET REVENUE DEAL TYPE


Read more at Reuters.com Mergers News

Iberdrola to Sell 85 Million New Shares to Pay for Energy East Acquisition

(Bloomberg) -- Iberdrola SA, the world's largest
owner of wind-power parks, plans to raise about 3.5 billion euros
($4.7 billion) in a share sale to pay for U.S. utility Energy
East Corp.

The Spanish utility will begin selling 85 million new shares
today through a so-called accelerated offering, the Bilbao-based
power producer said today in an e-mailed statement. ABN Amro
Rothschild, Credit Suisse Group and JPMorgan Chase & Co. are
managing the sale, aimed at fund managers.


Read more at Bloomberg Stocks News

Scottish Power Is Admitted to Endex to Trade Dutch Natural Gas Contracts

(Bloomberg) -- Scottish Power Plc's trading unit
joined the European Energy Derivatives Exchange to handle Dutch
natural gas contracts. JPMorgan Chase & Co. was admitted as the
exchange's seventh clearing member.

Glasgow-based Scottish Power became the 35th trading member
of Endex, the bourse said today in an e-mailed statement. It
will trade Dutch Title Transfer Facility gas futures, Endex
said.


Read more at Bloomberg Energy News

Corporate Bond Risk Jumps in Europe on Concern Over U.S. Housing Market

(Bloomberg) -- The risk of owning European company
bonds jumped to the highest in almost three months on concern a
slowing U.S. housing market will hit global corporate earnings
growth, according to traders of credit-default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased 7,500 euros to 222,000 euros, the highest
since April 5, according to JPMorgan Chase & Co. An increase in
the cost of the contracts, used to bet on a company's ability to
repay debt, shows a deteriorating outlook for credit quality.


Read more at Bloomberg Bonds News

U.K. Pound Gains to 4-Month High Versus Euro on Speculation Rates to Rise

(Bloomberg) -- The pound climbed to the highest in
almost four months against the euro on speculation investors will
keep increasing bets on higher interest rates in Europe's second-
largest economy.

The currency has risen almost 1 percent versus the euro this
week as minutes of the Bank of England's June policy meeting
yesterday showed Governor Mervyn King and three other policy
committee members backed higher borrowing costs. That prompted
HSBC Plc and JPMorgan Chase Co. to bring forward their forecasts
of the next interest-rate rise.


Read more at Bloomberg Currencies News

Pound May Extend Gains on Speculation Interest Rates to Rise Next Month

(Bloomberg) -- The pound may climb for a fifth day,
its longest winning run in two months, on speculation investors
will keep increasing bets on higher interest rates in Europe's
second-largest economy.

The U.K. currency has risen 1.2 percent versus the dollar in
the past four days, extending gains yesterday after minutes of
the Bank of England's June policy meeting showed Governor Mervyn
King and three other policy committee members backed higher
borrowing costs. That prompted HSBC Plc and JPMorgan Chase Co. to
bring forward their forecasts of the next interest-rate rise.


Read more at Bloomberg Currencies News

US CREDIT-Sallie Mae spreads widen, may weaken further

(Reuters) - Sallie Mae, officially known as SLM Corp., on April 16
accepted a $25 billion takeover bid from two private equity
funds, J.C. Flowers & Co. and Friedman Fleischer & Lowe, and
JPMorgan Chase & Co. and Bank of America Corp. .
For details, see [ID:nN16348651]




"Hedge funds taking short positions have been pushing CDS
spreads wider. We have seen only limited selling in cash
bonds," said Vincent Breitenbach, head of credit research for
the Americas at Barclays Capital in New York. "Short-sellers
will continue to lean on the spreads until they meet some
buying resistance."


Read more at Reuters.com Bonds News

Bear Stearns, Creditors May Help Save Hedge Fund, Person Familiar Says

(Bloomberg) -- Bear Stearns Cos., the biggest
broker for U.S. hedge funds, offered to provide $1.5 billion in
loans to help rescue a money-losing fund run by its asset-
management unit, a person familiar with the situation said.

The plan calls for New York-based Bear Stearns to provide
the money only if some of the hedge fund's creditors, which
include Merrill Lynch & Co. and JPMorgan Chase & Co., inject
$500 million of cash into the fund, said the person, who
declined to be named because the negotiations aren't public.


Read more at Bloomberg Bonds News

UPDATE 1-JPMorgan names Smith card chief, Srednicki retires

(Reuters) - Smith joins from American Express Co. , where he had
spent his entire career of more than 25 years, most recently as
president of the global commercial card group. He led American
Express' consumer card services group from 2001 to 2005.




At JPMorgan, Smith will join the operating committee and
report to Chief Executive Jamie Dimon. The appointment is
effective immediately. None of the executives was immediately
available for comment.


Read more at Reuters.com Bonds News

UPDATE1-Pros Holdings sees IPO priced at $10-$12/shr

(Reuters) - JPMorgan, Deutsche Bank Securities, Jefferies & Company and
Thomas Weisel Partners LLC will underwrite the IPO, according
to the filing.




The selling stockholders have granted the underwriters an
option to purchase up to an additional 1.02 million shares.


Read more at Reuters.com Government Filings News

UPDATE 1-SS&C Technologies files for up to $200 mln IPO

(Reuters) - The Windsor, Connecticut-based company, which provides
software and services to allow financial services providers to
automate their business processes, said Morgan Stanley, Credit
Suisse and JPMorgan will be the lead underwriters for the IPO.




Jefferies & Co. and Wachovia Securities are assisting in
the underwriting, according to a preliminary filing with the
U.S. Securities and Exchange Commission.


Read more at Reuters.com Government Filings News

U.S. Stocks Gain as Treasury Bonds Erase Losses; Target, Citigroup Advance

(Bloomberg) -- U.S. stocks gained after retail
sales jumped more than forecast and bond yields fell.

Target Corp., the second-biggest discount chain, and Home
Depot Inc., the largest home-improvement retailer, climbed.
Citigroup Inc. and JPMorgan Chase & Co. rose and financial
shares contributed the most to the advance in the Standard &
Poor's 500 Index.


Read more at Bloomberg Stocks News

U.S. Stocks Fall on Concern Higher Rates Will Hurt Profits, Takeovers

(Bloomberg) -- U.S. stocks fell after the bear
market in bonds pushed yields to a five-year high and increased
concern that the pace of takeovers may have peaked along with
corporate profits.

AT&T Inc., JPMorgan Chase & Co. and Wal-Mart Stores Inc. led
the Standard & Poor's 500 Index and Dow Jones Industrial Average
to their first decline in three days. All 14 real-estate
companies in the S&P 500 and every homebuilder retreated on
speculation higher yields foreshadow slower economic growth.


Read more at Bloomberg Stocks News