HALISTER1: HSBC Global Asset Mgmt: Buy Colombia Peso, Lira-Denominated Debt

HSBC Global Asset Mgmt: Buy Colombia Peso, Lira-Denominated Debt

(Bloomberg) -- Colombian peso is significantly undervalued on real-effective exchange rate basis, and country’s current account, while negative, is on an improving trajectory, Nishant Upadhyay, head of global emerging market debt at HSBC Global Asset Management USA, says in a phone interview.
  • Deal with FARC rebels is long-term positive for the economy; 2017 tax plan is going to be a fiscal positive
  • Buy local Turkish rates at about 11.25%-11.5% with inflation at about 7.5%, providing a large amount of real-rate compensation in ‘‘an economy which inflation-wise is not necessarily very low but is relatively stable”
  • Likes Mexican local bonds at 7.5% nominal rates, which equals about 4% when adjusted for inflation; they’re volatile and subject to flows, but are worth having in portfolio
  • Better credits within emerging-markets include Petrobras bonds maturing in 2025 and 2026, Turkish sovereign dollar- denominated bonds at about 300 bps spread over U.S. Treasuries
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
HSBA LN (HSBC Holdings PLC)

People
Nishant Upadhyay (HSBC Holdings PLC)

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UUID: 7947283

HALISTER1: High Yield 2017 Issuance Est. $200b, Total Returns 4-5%: BofAML

High Yield 2017 Issuance Est. $200b, Total Returns 4-5%: BofAML

(Bloomberg) -- U.S. high-yield issuance seen falling by 5%-8% to $200b in 2017 based on a combination of lending standards which are not expected to tighten significantly, changes in borrowing costs and trailing 3-Mo.migration rates, BofAML strategists led by Michael Contopoulos write in client note.
  • Issuance volume forecast also considered the potential for a tax cut which could increase the after-tax cost of debt
  • Total returns for 2017 est. at 4%-5% based on USD appreciation, higher rates, increased volatility, uncertainty around commodity prices and political risk
  • 2017 is expected to see an end to the global QE trade and the perpetual central bank put
  • Default rate is projected at 2%-2.5%, as fewer energy companies default
  • Recommend overweight Energy, Gaming, and Telco; underweight Autos, Healthcare, Real Estate, Hotels & Leisure, Technology and Utilities
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Michael Contopoulos (Bank of America Corp)

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UUID: 7947283

HALISTER1: Bay Street Funding Trust - Transaction 46 Summary

Bay Street Funding Trust - Transaction 46 Summary

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

Tickers
1918Z CN (Bay Street Funding Trust)

People
Jamie Feehely (DBRS Ltd)
Justin Tsang (DBRS Inc)
King Lam (DBRS Ltd)
Tim O'Neil (DBRS Ltd)

Topics
Credit Analysis Research
Credit Research
Fixed Income Research
Investment Research
Issuer Focused Research

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UUID: 7947283

HALISTER1: Bay Street Funding Trust - Transaction 23 Summary

Bay Street Funding Trust - Transaction 23 Summary

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

Tickers
1918Z CN (Bay Street Funding Trust)

People
Jamie Feehely (DBRS Ltd)
Justin Tsang (DBRS Inc)
King Lam (DBRS Ltd)
Tim O'Neil (DBRS Ltd)

Topics
Credit Analysis Research
Credit Research
Fixed Income Research
Investment Research
Issuer Focused Research

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To modify this alert, click here

UUID: 7947283