HALISTER1: EU CREDIT DAILY: Optimistic Tone; Ahold Delhaize Pact, SEB Beats

EU CREDIT DAILY: Optimistic Tone; Ahold Delhaize Pact, SEB Beats

(Bloomberg) -- GBP and EUR credit markets have performed strongly this week on optimism today’s BOE meeting will send out a dovish message and the new U.K. political administration will enable a smooth transition, Bloomberg strategist Simon Ballard writes.
  • Combination of ECB bond-buying and declining seasonal liquidity likely to underpin demand-supply dynamics in the near term across European credit markets
    • Risk appetite is still susceptible to headline risk, including any surprise hawkish bias today from the MPC, political uncertainty across EU as Brexit discussions loom
  • 2Q16 U.S. corporate earnings also becoming a key driver of market sentiment; Blackrock, JPM due later today; Citi, Wells Fargo, US Bancorp tomorrow
  • Risk Appetite Model now deviating from 2010 path as risk-on mood drives volatility and spread dispersion lower again
  • CDX IG closed +0.4bps at 76.37 in overnight session; iTraxx Asia Ex Japan IG currently -1.3bps at 124.13
NEWS
  • Corporate News
  • Ahold, Delhaize Reach Pacts to Divest 86 Stores in U.S.
  • Hays 4Q Net Fees Rise; U.K. Net Fees Slowed on EU Referendum
  • TSMC Profit Tops Estimates as China Phones Make Up for Apple
  • UK Mail 1Q Performance in Line With Prior Views
  • Mothercare 1Q U.K. LFL Sales Up 1.2%, Hasn’t Seen Brexit Effect
  • Halfords 1Q Retail LFL Sales, Cycling LFL Fall, Autocentres Up
  • Norwegian Air 2Q Revenue, Net Beat Ests; Raises ’16 CASK Outlook
  • Aeropostale Reports 1Q Loss
  • Kvaerner 2Q Net Beats Ests.; Sees Margin Improving in 2H Y/y
  • Fast Retailing Cuts Profit Forecast 3rd Time This Year
  • BHP Billiton Says Samarco Unlikely to Resume Operations in 2016
  • Financial News
  • SEB 2Q Net Income Tops Estimates; Fee Income Below Ests.
  • Ashmore 4Q AUM Rises $1.3b; Net Outflows in Quarter $0.7b
  • Moneysupermarket 1H Rev. Rises 10%, Confident on FY Outlook
  • Deutsche Bank Names Dupree to Run Americas M&A, Shuffling Ranks
  • Storebrand 2Q Premium Income, Net Rise; Sees Dividend for 2016
  • Credit Rating News
  • Australian Banks Face Rising Challenges, Moody’s Says
  • APAC Geopolitical Risks Rise But Not a Ratings Driver Yet: Fitch
  • Fitch Affirms Indonesia’s Telkom at ’BBB-’; Outlook Stable
  • Other News
  • Bank of England Rate Cut in Focus as Brexit Rattles Economy
  • May Draws Line Under Cameron Era as Johnson Named to Brexit Team
  • Juncker Confident of Building Stronger EU Partnership With U.K.
  • Bernanke Visit Sees Bond Market Shrug Off Helicopter Money Calls
ANALYST VIEWS
  • The heavy hand of the ECB (is) manipulating it all...so position for it. The hidden subliminal message is to take risk: lower in quality, and longer in duration - positioning for high/low beta compression: creditmarketdaily.com
NEW ISSUES
  • State Of Hessen EU500m 0.25% 6/2025 Tap MS -12
  • AFD EU1.5b 10Y FRTR +17
  • Zurich Insurance $1b PNC5.5 at Par, 4.75% Coupon
  • European IG credit pipeline here and HY credit pipeline here
  • Issuers exposed to S-T rollover and interest-rate reset risk 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Sisal’s New Issue Premium Looks Higher Than Warranted: Lucror

Sisal’s New Issue Premium Looks Higher Than Warranted: Lucror

(Bloomberg) -- Guidance on Sisal’s EU725m notes suggests investors are demanding a higher-than-warranted new issue premium from a well-known and repeat HY issuer, possibly due to the Brexit vote, Lucror analysts write in a client note.
  • Current pricing is attractive and Lucror recommends participating in the notes offering
  • Likes the company’s track record, moderate product diversification, stable financial performance and solid cash-flow generation
  • CVC’s equity cheque is of a reasonable size and has led to reduced leverage
  • Don’t rule out further new issues before summer lull should Sisal successfully place its deal
  • NOTE: Books on the dual-tranche deal due to close at 10:30am London time today
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
0306876D LX (CVC Capital Partners SICAV-FIS SA)
0812889D LX (Gaming Invest SARL)

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UUID: 7947283

HALISTER: TSMC Profit Tops Estimates as Chinese Phones Make Up for Apple

TSMC Profit Tops Estimates as Chinese Phones Make Up for Apple

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
AAPL US (Apple Inc)
2330 TT (Taiwan Semiconductor Manufacturing Co Ltd)

People
Eric Lin (CIMB Securities Singapore Pte Ltd)
Gokul Hariharan (JPMorgan Chase Bank NA)
Rick Hsu (Daiwa Securities Capital Markets Co Ltd)

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UUID: 7947283

HALISTER1: INDIA RATINGS: UCO Bank Cut; Bangalore Airport Raised

INDIA RATINGS: UCO Bank Cut; Bangalore Airport Raised

(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
DOWNGRADES
  • Spictex Coton
    • Long-term loan facilities cut to B+ from BB- at Crisil
    • Cites lower-than-expected revenues, cash accruals
  • UCO Bank
    • Lower Tier 2 bonds cut to AA- from AA at Care; upper Tier 2 cut to A+ from AA-
    • Cites more-than-expected deterioration in asset quality
UPGRADES
  • Arohan Financial
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites significant rise in scale of operations, healthy asset quality
  • Bangalore International Airport
    • Term loans raised to A+ from A at ICRA
    • Cites favorable govt policies
  • Dee Development
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites equity infusion from Carlyle Group
  • Indapur Dairy
    • Term loan raised to A- from BBB+ at ICRA
    • Cites improved profitability
  • Nelcast
    • LT bank facilities raised to A+ from A at ICRA
    • Cites favorable demand outlook for tractor and commercial vehicle segments for the near-term, which in turn may support the co.’s operating income, profitability
  • Venus India Asset-Finance
    • NCDs raised to BBB- from BB+ at Care
    • Cites capital infusion
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
UCO IN (UCO Bank)
610369Z IN (Bangalore International Airport Ltd)
1008738D IN (Arohan Financial Services Pvt Ltd)
9264881Z IN (Dee Development Engineers Pvt Ltd)
NELC IN (Nelcast Ltd)

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UUID: 7947283