HALISTER1: *NEUSTAR TO BE BOUGHT BY GOLDEN GATE GROUP FOR $33.50/SHR CASH

*NEUSTAR TO BE BOUGHT BY GOLDEN GATE GROUP FOR $33.50/SHR CASH

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
NSR US (NeuStar Inc)

People
David Angelicchio (NeuStar Inc)
David Isaacs (Sard Verbinnen & Co)
Jennifer Gore (Citigate Sard Verbinnen LLC)
Lisa Hook (NeuStar Inc)
Rishi Chandna (Golden Gate Capital LP)

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UUID: 7947283

HALISTER1: Gilt 10s30s Steepener, Shorts in Spain, France for 2017: DB

Gilt 10s30s Steepener, Shorts in Spain, France for 2017: DB

(Bloomberg) -- Expect 10Y bund yields at ~1% by end-2017 as ECB likely to indicate further cut in asset purchases next year as inflation outlook improves, Deutsche Bank strategists including Abhishek Singhania write in client note.
  • Despite this outlook, remain cautious on core euro-area rates given ECB’s insistence on maintaining QE, divergences in euro-zone economies, optimistic inflation forecasts, political event risk
  • Reduction in pace of ECB QE to EU60b from April 2017, plus any further tapering should have a greater effect on semi- core and peripheral bonds rather than core
    • Prefer holding short position in EUR rates expressed via 50% short in France, 50% in Spain
  • Technical parameter changes to PSPP to significantly reduce duration of purchases in core countries; less long-end buying to result in steeper curves and tighter long-end ASW
    • This combined with rising issuance in Netherlands, largely due to redemptions, suggests DSL 10s30s steepener; also recommend Buxl ASW tighteners
  • In U.K., rates to be driven by global shift in policy mix, rising issuance, the extent to which economic resilience continues and uncertainty over the political outlook
    • Anchored front-end, plus policy shifts should lead to steeper curves; recommend gilt 10s30s steepeners
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Abhishek Singhania (Deutsche Bank AG)

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UUID: 7947283