Sales of Higher-Risk Mortgage Bonds Will Fall in Second Half, Lehman Says

(Bloomberg) -- Sales of new bonds backed by higher-
risk, higher-rate mortgages will slow further in the second half
of this year, according to Lehman Brothers Holdings Inc.

Issuance of bonds backed by subprime mortgages will drop 66
percent from the same period in 2006 to $75 billion, reflecting
a 57 percent drop from the first half of this year, analysts at
Lehman wrote in a report today. Alt A mortgage bond sales will
tumble 48 percent from last year's second half, the report said.


Read more at Bloomberg Bonds News

Treasuries Little Changed as Concern Over Subprime Mortgage Losses Eases

(Bloomberg) -- Treasuries were little changed as
stocks indexes extended records, suggesting concern over the
subprime mortgage crisis has eased.

U.S. notes pared earlier gains after a private report
showed confidence among U.S. consumers unexpectedly rose from a
10-month low. Lehman Brothers Holdings Inc., the biggest
underwriter of mortgage bonds, said the worst of the global
credit market rout caused by subprime defaults is over and
investors should buy European investment-grade debt.


Read more at Bloomberg Bonds News

Abercrombie, Blackstone, Delphi, EBay, Jabil, Taser: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 9:30 a.m. New York time.

Abercrombie & Fitch Co. (ANF US) fell $1.84, or 2.4 percent,
to $74.74. The casual clothing retailer for teens and college
students was cut to ``equal weight'' from ``overweight'' at
Lehman Brothers Holdings Inc. The company's same-store sales
could decline in the second and third quarters, and a later back
to school period could result in a ``disappointing'' July,
analysts wrote in a note.


Read more at Bloomberg Stocks News

Coles Bond Risk Set to Rise to Record on Wesfarmers Takeover, Lehman Says

(Bloomberg) -- The perceived risk of owning the
bonds of Coles Group Ltd., Australia's second-biggest retailer,
could rise to a record if a takeover led by Wesfarmers Ltd.
increases debt and pushes its credit rating below investment
grade, according to Lehman Brothers Holdings Inc.

Wesfarmers, Australia's biggest home improvement retailer,
is seeking to raise about A$12 billion ($10.2 billion) to fund an
offer for Coles, two people with direct knowledge of the matter
said last week.


Read more at Bloomberg Bonds News