European companies sales fell to its lowest level becauseof the irish crisis

sales of European companies in U.S. dollar bonds fell to its lowest level in nearly a decade on concern the crisis in the region, the budget deficit will spiral out of control as Ireland is closer to Greece after getting a ransom.

Borrowers in Europe have increased 1.4 billion U.S. dollars this month the sale of debt in the U.S., only 2.7 percent of the total issuance of investment grade, the lowest since February 2001 below $ 9,300,000,000, or 32 percent, in the same period of the month of October. Until this month, sales of U.S. bonds by companies in Europe made an average of 29 percent of the issue in 2010, according to the data.

Six months after Greece appealed for help in paying your bills, credit markets in Europe again shaken by a fiscal crisis, which limits the ability of firms to raise funds in the bond market. the region's problems of debt are driving up borrowing costs on a time that are shrinking elsewhere. Finance ministers of the EU began work on possible assistance for banks in debt in Ireland, without a rescue package immediately.

"The world is awakening to the fact that the European sovereign crisis is just beginning," said Scott Minerd, chief investment officer of New York, Guggenheim Partners LLC, which has been avoiding lenders bonds Italians and Irish and cut their exposure to Spanish banks. "The only solution is a weaker euro," said Minerd, who helps oversee 76 billion U.S. dollars.

Italian yields

Yields on Italian corporate debt sold in dollars have risen 11 basis points, or 0.11 percentage point to 229 basis points more than benchmark since 31 October, while bond spreads Portuguese widened 13 basis points to 322, according to Bank of America Merrill Lynch index data.

The raw performance of the Spanish company in the U.S. increased 13 basis points to 205, and the United Kingdom extended ranges 5-197. Margins for U.S. companies tightened one basis point to 170.

Elsewhere in credit markets, the extra yield investors demand to own company rather than similar government bond maturity climbed 1 basis point to 167 basis points, compared to 164 on October 31, according to Global Bank of America Merrill Lynch Corporate Market General Index. The average yield of 3.639 percent from 3.645 percent on Nov. 15.

The cost of the protection of Fortune Brands Inc. of debt default rose to its highest level in nearly 19 months in Pershing activist investor William Ackman concern Square Capital Management LP could break the bourbon maker Jim Beam.

Contracts in Deerfield, Fortune Brands, headquartered in Illinois increased 6.7 points to 219.4 basis points, according to data provider CMA. The swaps trade at the highest since April 22, 2009, have increased from 127.4 basis points on Oct. 7, the day before Ackman disclosed a 11 percent stake in the company, making its headquarters in New York hedge fund of its largest investor.

Most traded bonds

Bonds Fairfield, Connecticut-based General Electric Co. were the most actively traded U.S. corporate securities by dealers yesterday, with 110 transactions of $ 1 million or more, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority.

The Standard & Poor's / LSTA U.S. leveraged loan 100 Index fell for a fourth straight day, falling 0.16 cent to 92.22 cents. Prices in the index, which measures the 100 largest dollar loans first lien leveraged, have fallen 92.72 cents on Nov. 9, the highest since May 3.

Six Flags Entertainment Corp., Grand Prairie, theme park operator based in Texas that emerged from bankruptcy in May, sets prices in a term loan of $ 950000000.

Six Flags Loans

Six Flags is offering to pay 375 basis points more than the rate for London interbank offered the loan within six years, according to a person familiar with the deal who requested anonymity because the terms are private. Libor, the rate banks charge to lend to each other, have a floor of 1.5 percent, the source said.

The company intends to sell the debt to 99.75 cents, said the source, reducing income to the borrower and increased profitability for investors.

In emerging markets, the extra yield investors demand to own property rather than government bonds rose 18 basis points, the biggest gain since Sept. 21 to 249 basis points, according to JPMorgan Chase & Co. data index. The differential had fallen to 229 basis points on November 5, lowest since December 2007.

European finance ministers expressed confidence that Ireland will weather the fiscal crisis, avoiding motives of investors for a bailout package and the risk of renewed turmoil in the bond markets.

Finance chiefs from the euro zone of 16 countries commended the Irish budget cuts, echoing the rhetoric of support offered in the early stages of the trauma of Greece's debt before aid was necessary.

"Significant efforts"

"We welcomed the significant efforts of Ireland to meet the challenges they face," said Luxembourg Prime Minister Jean-Claude Juncker told reporters after chairing the meeting of ministers in Brussels yesterday afternoon.

European crisis erupted two weeks ago after Germany proposed to force bondholders to share the pain of any future rescue, bringing yields throughout the region. Central Bank Ireland, Patrick Honohan said Nov. 10 that loan losses to lenders in the country, including foreign-owned banks, the total of at least 85 million euros (115 billion U.S. dollars).

The European Central Bank officials are urging Ireland, which says it is funded entirely by mid-2011, to set aside national pride and touch the bottom of 750 billion euros six months ago designed to deficit nations periphery of Europe.

The crisis of May brought the issue close to links with European companies selling $ 782 million in the U.S., or 3 percent of all investment grade deals of the month.

Margin doubled

Ireland was an increase in insurance costs of defaults among the European nations today after LCH Clearnet Ltd. doubled the margin requirement for trading bonds of Ireland.

Swaps credit-default in Ireland rose 35 basis points to 554.5, according to data provider CMA. Contracts in Greece increased by 22 basis points to 950, Portugal rose 7 to 429, Italy was 6 over 192 and in Spain rose 9.5 to 266.

The Markit iTraxx Index SovX Western Europe 15 governments swaps rose 2 basis points to 170. A basis point on a credit agreement default swaps protecting $ 10 million debt from default for five years is equivalent to $ 1.000 a year.

Swaps credit-default pay the buyer face value in exchange for the underlying securities or the cash equivalent of a company fail to adhere to its debt agreements.

Spreads Spike

"When peak extends up, the issue is postponed," said Alberto Gallo, credit strategist at Goldman Sachs Group Inc. in New York. "Companies will be removed when the outlook is negative peripheral and it will affect their funding costs."

Guggenheim is "generally well" with the market in the region of corporate debt, while drawing the line on most lenders peripherals and European government bonds, said Minerd.

European lenders are avoiding the market for dollar-denominated debt, partly due to the crisis of the sovereign will weaken the euro and U.S. liabilities more expensive, he said. The euro has shot up by 19 percent against the dollar since June 7.

The setback comes at a time in Wind Telecomunicazioni SpA, the mobile phone company based in Rome, whose father is a merger with Russia's VimpelCom Ltd., plans to sell $ 1 billion of debt in the U.S. as part of a supply of 3200 million euros to refinance existing debt, according to a person familiar with the operation.

Postpones Ferrexpo

Ferrexpo Plc postponed its sale of bonds denominated in dollars and five years due to market conditions, Ingrid McMahon, a spokesman for the producer Baar, iron ore, based in Switzerland, said on 10 November.

BNP Paribas SA, the world's largest bank by assets, fellow Paris-based lender Societe Generale SA and Royal Bank of Scotland Group Plc were among European issuers to sell bonds of at least $ 100 million in the U.S. this month. BNP Paribas raised $ 650 million on November 5 in the sale of 3.25 percent notes maturing in 2015, while Societe Generale and Edinburgh-based RBS sold $ 100 million variable rate debt.

Sales in euros have also fallen this month, with the issuance of 17 million euros, compared with $ 24.4 million during the same October period.

"There is concern about what is happening in Europe, particularly the exposure of banks to sovereign economic and weaker nations," said Mirko Mikelic, portfolio manager at Fifth Third Asset Management, which oversees $ 13 000 million in fixed income assets in Grand Rapids, Michigan. "The issuance has slowed, as it has become more expensive, investors have been much more selective and there are other opportunities for the U.S. dollar."