Dell Lifts Default Risk on Next Buyout Targets: Credit Markets
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Derivatives traders are beginning to speculate that the potential leveraged buyout of computer maker Dell Inc. marks the return of credit-busting takeovers as the cost of financing the deals gets ever cheaper.
The cost to protect against losses on Quest Diagnostics Inc. bonds reached a 15-month high yesterday and Nabors Industries Ltd. credit-default swaps jumped to the most since July amid speculation they may become targets for leveraged buyouts. A benchmark gauge of U.S. corporate credit risk rose on the speculation, according to Bank of America Merrill Lynch credit strategists.