Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Legg Mason Inc    LM

Delayed Quote. Delayed  - 09/28 10:02:00 pm
33.77 USD   +1.20%
09/26 LEGG MASON : When does active beat passive in small-cap?
09/22 LEGG MASON : Infrastructure Funds, New to U.S. Markets, Offer Invest..
09/21 Trillion-dollar global fund industry faces pressure to tighten be..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

New Corporate Bond Volume Slows; No Major Deals Wednesday

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/16/2012 | 11:00pm CEST
   By Patrick McGee 
   Of  
 

The pace of corporate bond issuance slowed down Wednesday, but enough small deals got done to suggest investor appetite remains in place despite several days of deteriorating sentiment.

Five high-grade companies borrowed a combined $2 billion Wednesday, down from more than $3 billion of new-volume in each of the prior two sessions.

Larger deals included a $650 million, seven-year offering from asset manager Legg Mason Inc. (>> Legg Mason, Inc.), which was priced to yield 5.682%, or 4.5 percentage points over Treasurys. Also, Cardinal Health (>> Cardinal Health, Inc.) sold a $500 million issue of five- and 10-year bonds at 1.935% and 3.214%, respectively, or 1.20 and 1.45 points over Treasurys.

Offered yields are generally falling as deals flow through the marketing period, suggesting they are being absorbed without much difficulty. But the story is quite different outside the new-issue market.

Markit's CDX North America Investment Grade Index, a barometer of sentiment in the corporate bond market, weakened 1.5% to settle at 119 basis points--its worst level since Jan. 9.

In the past week, the CDX index has jumped 17 basis points, indicating the cost of protecting against default is rising rapidly.

MarketAxess shows the 10 most actively-traded bonds all weakened versus Treasurys on Wednesday, with risk premiums jumping anywhere from 0.03 to 0.26 percentage points.

Bank bonds continue to trade poorly in the secondary market, in part stemming from the $2 billion trading loss reported last Thursday by J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.).

J.P. Morgan 4.5% bonds due 2022 weakened 0.03 points to a spread over Treasurys of 2.09 Wednesday. Their risk premium has jumped 0.29 points in the past week and 0.35 points this month.

The spread on Goldman Sachs Group (>> Goldman Sachs Group, Inc.) 5.75% coupon 2022 bond, the most active corporate bond in Wednesday's market, weakened 0.11 points Wednesday, contributing to a 0.54 point widening this month.

A trader in Chicago said the Goldman weakening wasn't related to specific news. Instead, Goldman bonds were playing catch-up to other banks, such as Morgan Stanley (MS), whose bonds weakened earlier this year on concerns of exposure to Europe.

"It's the fact that markets might freeze up again if Europe doesn't get a handle on the Greece situation," the trader said.

On May 4, Morgan Stanley five-year bonds were yielding 1.35 points more than comparable Goldman five-year notes; that same spread had narrowed to 1.13 points Wednesday, MarketAxess shows, as Goldman bond yields climb.

"The Europe stuff is real," the trader said. "And if it hurts Morgan Stanley, it will hurt Goldman."

Meantime, corporate-bond spreads have jumped about 0.07 percentage points in the past week to 1.922, according to the Barclays U.S. investment-grade index. But yields have remained at the lowest levels in nearly four decades of data. The Barclays index rose 0.01 point Tuesday to 3.27%.

-By Patrick McGee, Dow Jones Newswires; 212-416-2382; patrick.mcgee@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LEGG MASON INC
09/26 LEGG MASON : When does active beat passive in small-cap?
09/22 LEGG MASON : Infrastructure Funds, New to U.S. Markets, Offer Investors Opportun..
09/21 Trillion-dollar global fund industry faces pressure to tighten belt
09/20 LEGG MASON : Miller to acquire full stake in LMM from Legg Mason
09/20 LEGG MASON : Announces Bill Miller to Leave, Acquire Its Stake in LMM LLC
09/19 LEGG MASON : With Fixed Income Yields Tumbling to Zero Around the World, Dividen..
09/13 LEGG MASON : Reports Assets Under Management and Flows For August 2016
09/10 LEGG MASON : How Can Investors Potentially Generate Income and Grow Their Assets..
09/08 LEGG MASON, INC. : Regulation FD Disclosure, Financial Statements and Exhibits (..
09/07 LEGG MASON, INC. : Entry into a Material Definitive Agreement, Financial Stateme..
More news
Sector news : Investment Management & Fund Operators - NEC
09/28 Credit Suisse, Barclays in mortgage-settlement talks with DoJ - Bloomberg
09/28DJUBS : Settles Claims That Sales Reps Weren't Properly Trained
09/28 Fed's Yellen says holding one banking rule, capital surcharge, in place
09/28DJOCH ZIFF CAPITAL MANAGEMENT LLC : Ziff to Pay $400 Million to Settle Bribery Pro..
09/28 U.S. REGULATORS EYEING WHETHER LARGE : Yellen
More sector news : Investment Management & Fund Operators - NEC
News from SeekingAlpha
09/16 Active managers close out worst five years since 1999
09/13 Legg Mason sees long-term net inflows in August
09/07 Asset managers will consolidate in coming years, here's how to play it
09/06 Two picks for troubled asset management industry - Credit Suisse
08/31 New Preferred Stock IPOs, August 2016
Advertisement
Financials ($)
Sales 2017 2 944 M
EBIT 2017 492 M
Net income 2017 234 M
Debt 2017 -
Yield 2017 2,65%
P/E ratio 2017 15,07
P/E ratio 2018 10,18
Capi. / Sales 2017 1,17x
Capi. / Sales 2018 1,11x
Capitalization 3 458 M
More Financials
Chart LEGG MASON INC
Duration : Period :
Legg Mason Inc Technical Analysis Chart | LM | US5249011058 | 4-Traders
Full-screen chart
Technical analysis trends LEGG MASON INC
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 40,3 $
Spread / Average Target 21%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Joseph A. Sullivan Chairman, President & Chief Executive Officer
Peter H. Nachtwey Chief Financial Officer & Senior Executive VP
Kurt L. Schmoke Independent Director
Margaret Milner Richardson Independent Director
Cheryl Gordon Krongard Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
LEGG MASON INC-14.94%3 422
BLACKROCK, INC.6.25%58 678
GOLDMAN SACHS BDC INC17.16%53 146
UBS GROUP AG0.00%51 824
BANK OF NEW YORK MELLO..-4.17%42 227
STATE STREET CORP5.61%27 040
More Results