Halister News

(Bloomberg) -- Global credit markets look to reverse some of the recent overshoot in yields and spread widening as the government-bond selloff sees some respite; still, market price action highlights ongoing fragility of investor sentiment, Bloomberg strategist Simon Ballard writes.

• Bloomberg Barclays U.S. Aggregate Corporate index tightened 2bps Tuesday while Bloomberg Barclays Sterling Corporate index was -1bp at 147bps OAS; Bloomberg Barclays EuroAgg Corp index drifted 1bp wider to 116bp
• Differentiation between U.S./EUR macro outlooks and prospect of ECB extending policy accommodation beyond March 2017 should underpin near-term EUR risk appetite
• WIRP now indicates 94% probability of a December Fed rate increase; risk-market sentiment may now be more at risk of Fed not moving
• Bloomberg Barclays Eur-Agg Corporate index closed Tuesday at 116bps (+1bps); Bloomberg Barclays Eur HY index closed at 408bps (+14bps)
• CDX IG closed Tuesday -2.2bps at 75.53; iTraxx Asia Ex Japan IG is currently -4.1bps at 125.28 and iTraxx Australia quoted -1.6bps at 109.17

NEWS

• Corporate News
• Bouygues 3Q Sales Miss Ests.; Confirms 2016 Outlook
• Iliad 3Q Revenue Rises on Mobile Plan Gains
• British Land Says Saw Good 1H on Co. Actions, Leasing Momentum
• Dixy 3Q Ebitda Falls 55% Y/y as Margin Shrinks to 1.5% of Sales
• Sixt Leasing 3Q Sales Rise 7%, Pretax Down 4.5%; Lowers Outlook

• Financial News
• ABN Amro 3Q Underlying Profit Beats, Operating Income Rises
• Raiffeisen 3Q Net Income, Pretax Profit Beat; NII In Line
• ICAP 1H Revenue Rises 11%, Pretax Up 78%, Dividend in Line
• Bank Leumi 3Q Profit Jumps 31% as Interest Income Rises
• CIMB Group 3Q Net Rises to 1.02b Ringgit from 803.9m Ringgit Y/y
• Ageas 3Q Net of 185m Tops Ests.; Combined Ratio Drops to 93.2%
• BBVA Puts Swiss Private Bank Unit on Sale: El Independiente
• Abu Dhabi Said to Mull More Bank Mergers After NBAD-FGB Deal

• Rating News
• Fitch Affirms Shanghai Electric Power at ’BBB+’; Outlook Stable
• S&PGR Keeps UDC Finance ’A-/A-2’ Rtgs On CreditWatch Negative

• Other News
• Fed Rate-Hike Odds Approach 100% in Anticipation of Trumpenomics
• Bond Selloff Hurt Top Quant Fund Even Before Trump Rout
• Japanese Shares Rally to Highest Since February on Yen Losses

ANALYST VIEWS

• The new-issue sector sort of came to life (Tuesday); there is still great demand for corporate bond risk despite the jitters we have had since rate markets started selling off. That is now EU14b for the month at the halfway stage, with almost EU7b of it coming in two sessions this week: creditmarketdaily.com

NEW ISSUES

• AMERICAN EXPRESS EU1B 5Y MS +57
• ANZ Banking Group EU750m 7Y Covered MS +10
• BayernLabo EU500m 10Y MS -7
• CA Home Loan SFH EU1.5b Long 7Y Covered MS -5
• Mercedes-Benz Japan EU250m 3Y MS +18
• Mylan EU3b 4-Part Deal
• Unibail-Rodamco EU500m 2/2025 MS +50
• European IG credit pipeline here and HY credit pipeline here

• NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

(Bloomberg) -- USD/MYR 1-month NDF climbs 1.0% to 4.4040 rising for the first time in 3 days, following Reuters report that the Malaysia’s central bank has asked foreign banks to refrain from trading in non-deliverable forwards when unwinding positions in Malaysian markets.

• Spot USD/MYR up 0.2% to 4.3517

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery

UPGRADES

• Calcom Cement
  • Long-term loan raised to AA-(SO) from A+(SO) at Care
  • Cites credit enhancement in form of a letter of comfort by Dalmia Cement Bharat

• Caspian Impact Investments
  • NCDs raised to BBB from BBB- at Care
  • Cites growth in loan portfolio

• HPCL-Mittal Energy
  • LT bond programme raised to AA from AA- at ICRA
  • Cites favorable outlook on gross refining margins

• Traco Cable
  • LT bank facilities raised to C from D at Crisil
  • Cites timely debt servicing over the past 90 days

• Viacom18 Media
  • LT bank facilities raised to AA from AA- at Care
  • Cites improvement in operational performance

(Bloomberg) -- Stronger-than-expected Philippines 3Q GDP growth may send USD/PHP 1-month NDF falling near term toward 50-DMA which has held since early September, Bloomberg strategist Andrew Robinson writes.

• Economy probably expanded 6.7% y/y after 7.0% increase in 2Q, median est. in Bloomberg survey shows; ests. range from 6.2% to 7.1%; data due 10am local time on Nov. 17
• Strong performance in agriculture and exports could see 3Q GDP growth exceed 7%, Economic Planning Secretary Pernia said on Nov. 15
  • Only 1 out of 15 economists in survey forecasts growth above 7%
• 1-mo NDF is down 0.2% at 49.37; 50-DMA is at 48.44
  • Momentum studies are bearish as slow stochastics %K line drops below overbought threshold to 72; 14-day RSI is falling
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

(Bloomberg) -- Shrs drop 11% to lowest intraday level since April 2015.

• Co. requested trading halt Tuesday to respond to report that Saipan casino it operates has drawn the attention of U.S. Treasury due to huge revenues
• NOTE: Co. says it’s never received investigation notice from the U.S. Treasury’s Financial Crimes Enforcement Network; co. has fully applied an anti-money laundering system to ensure compliance with all applicable U.S. laws and regulations Link
• READ: Big Money, Big Questions at Trump Protege’s Remote Casino Link

(Bloomberg) -- Rapid steepening in Singapore’s swap curve may pause near term if exports data continue to show signs of weakness, Bloomberg strategist Mark Cranfield writes.

• Spread between 2- and 10-year Singapore interest-rate swaps currently at 102bps, widening from 87bps a day before U.S. elections last week; chart here
• SGD curve momentum studies are in extreme overstretched territory suggesting a near term consolidation is possible
  • Slow stochastics %K at 97, MACD at levels last seen in 2013
• Singapore non-oil domestic exports probably fell 3.0% y/y in October vs -4.8% y/y in September, according to median estimate in Bloomberg survey; data due at 8:30am on Thursday
  • Singapore’s non-oil exports have contracted on 8 out of the past 11 months
• NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.