HALISTER1: VCL Master Residual Value S.A., acting through its Compartment 1 - DBRS Rating Report

VCL Master Residual Value S.A., acting through its Compartment 1 - DBRS Rating Report

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

People
Masaaki Iwamoto (Nikko Asset Management Co Ltd)
Megumi Todori (North Pacific Bank Ltd)
Paolo Conti (DBRS Inc)
Paul Seet (Jump Trading LLC)

Topics
Fixed Income Research
Reports
Credit Analysis Research
Credit Research
Investment Research

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UUID: 7947283

HALISTER1: Israeli Police Question Arab Lawmakers on Fraud Allegations

Israeli Police Question Arab Lawmakers on Fraud Allegations

(Bloomberg) -- Special investigative team interrogates parliament members Haneen Zoabi, Jamal Zahalka, according to text message from police spokeswoman Luba Samri.
  • Involves alleged money laundering through Jordan of millions of shekels of Balad party funds: Samri
  • Zoabi to Channel 2 TV: Case is “political witch hunt”
  • Party headquarters in Nazareth searched
  • NOTE: 2/8/16 Israeli Parliament’s Ethics Committee Suspends 3 Arab Lawmakers Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Gilt-Bund 10Y Yield Spread May Widen 16BPs on Technical Pattern

Gilt-Bund 10Y Yield Spread May Widen 16BPs on Technical Pattern

(Bloomberg) -- Relative underperformance of gilts vs. bunds may extend after yield spread forms a bottoming pattern, Bloomberg technical analyst Sejul Gokal writes.
  • Spread, now at 96bps, could potentially widen toward 112bps; see chart here
  • Measured objective captures the spread lows seen in Aug. 2015; Feb. 2016 lows were also around 112bps
  • If spread overshoots, it could approach 124bps, top of narrowing trend channel from March 2015
  • Risk to outlook may stem from relative gilt outperformance beyond 80bps, which is right shoulder trough of pattern
  • Earlier: U.K. 10-Year Yield Head-and-Shoulders Projects Pre- Brexit High
  • NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Brazil Market Anticipates Bill Approval; Tally Is Key: Analysts

Brazil Market Anticipates Bill Approval; Tally Is Key: Analysts

(Bloomberg) -- BRL and stocks gain as investors expect President Temer to win a vote later today on spending cap bill; the vote tally will be key as a sign of the govt’s ability to implement the broad reforms agenda, analysts say.
  • Government win has being priced in, Mauricio Oreng, senior strategist at Banco Rabobank, says in a phone interview
    • Expectation is reasonable that government will win with 350 votes vs a minimum of 308 needed for passage; if the bill passes with a very tight margin, it could bring uncertainty about Congress’s support for reforms
    • “The government is putting all its chips into the bill’s approval”
    • Along with slowing CPI, bill vote may help allow BCB to cut rates by 25bps in next week’s meeting
  • Government has worked hard to approve the measure as it may affect investors’ confidence, Ricardo Sennes, director at Prospectiva Consultoria, says
    • Temer government considers the vote as a “silver bullet” for its reforms agenda, Sennes says
  • Prosecutor-General Office’s challenge on spending cap may not be accepted by the Top Court, MCM Consultores says in a e-mailed note
    • In a recent similar decision, the Court assessed that decisions on budget are a Congressional role, not a Judiciary one
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Mauricio Oreng (Banco Rabobank International Brasil SA)
Michel Temer (Federative Republic of Brazil)
Ricardo Sennes (Prospectiva Consultoria)

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UUID: 7947283

HALISTER1: U.K. 10-Year Yield Head-and-Shoulders Projects Pre-Brexit High

U.K. 10-Year Yield Head-and-Shoulders Projects Pre-Brexit High

(Bloomberg) -- Gilt 10-year yields completing three-month-long bottom formation, suggesting further bond weakness in on the cards, Bloomberg technical analyst Sejul Gokal writes.
  • Yield now at 1.00%; measured objective set at 1.36%, with interim Fibonacci projection at 1.20%; see live chart here
  • U.K. 10-year yield now at 100bps, compared with late Sept. trough of 64bps
  • Neckline of inverse head-and-shoulders, at 96bps, broken on Friday
  • Support at 120bps, which is 61.8% Fibonnaci pattern projection and Dec. yield downtrend; then at 136-140bps (pattern goal, pre-Brexit high on yield)
  • Sharp slump in sterling has boosted market expectations for U.K. inflation, affecting the long end of the curve the most
  • NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Deutsche Strategist Sees Bond Substitute ‘Hurricane’ Opportunity

Deutsche Strategist Sees Bond Substitute ‘Hurricane’ Opportunity

(Bloomberg) -- Deutsche Bank Chief U.S. Equity Strategist David Bianco recommends buying utilities and telecom after recent weakness on fears of rising interest rates.
  • Utilities are favored bond substitute followed by telecom (raised to overweight), given dividend coverage, followed by REITs and consumer staples
  • Recommends including some big banks in portfolio overweight utilities and telecom as hedge on rates
  • Expects Dec. Fed hike and 10-year treasury yields to slowly climb to 2% in 2017
  • Skeptical of recent oil rally, says energy stocks priced for $65-$70/bbl in 2018
  • NOTE: Sept. 19, U.S. Election Plays Outlined in Deutsche Bank Strategy Note
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
XTL US (SPDR S&P Telecom ETF)
XLU US (Utilities Select Sector SPDR Fund)

People
David Bianco (Deutsche Bank AG)

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UUID: 7947283