HALISTER1: CORRECT: China Cos Should Repatriate Bond Proceeds, CICC Says

CORRECT: China Cos Should Repatriate Bond Proceeds, CICC Says

(Bloomberg) -- (Corrects headline to show CICC recommends bond proceeds repatriation.)
  • Chinese issuers should grab the mkt window and repatriate offshore bond proceeds back into the country, Zhang Xing, Head of DCM Origination, Overseas, at CICC, says in an interview.
  • On June 15 China’s State Administration of Foreign Exchange (SAFE) opened the gate for corporates to repatriate proceeds of offshore bond issuance and also decide the timing to take the funds onshore
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  • Zhang expects SAFE’s new rule to give Chinese issuers more incentive to tap the USD bond market as most of them need to repatriate proceeds for their onshore projects
  • He expects better rated LGFV issuers to benefit more from the new rule
    • “As the high rated LGFVs are able to get higher international ratings and more favorable deliverable forward price from banks to help lower their hedging cost”
  • China financing vehicles find dollar bond buyers as yuan slides
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SAOFEZ CH (State Administration of Foreign Exchange)

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UUID: 7947283

HALISTER: Verizon’s Pursuit of Yahoo Puts the Spotlight on a Rising Star

Verizon’s Pursuit of Yahoo Puts the Spotlight on a Rising Star

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VZ US (Verizon Communications Inc)
YHOO US (Yahoo! Inc)

People
Marni Walden (Verizon Communications Inc)
Daniel Gilbert (Quicken Loans Inc)
Greg Haller (Cellco Partnership)
Jennifer Fritzsche (Wells Fargo Securities LLC)
John Denver

Topics
Who's News - People

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UUID: 7947283

HALISTER1: Target 10Y Gilt/Bund Spread Narrowing to 75bp on Policy Gap: SG

Target 10Y Gilt/Bund Spread Narrowing to 75bp on Policy Gap: SG

(Bloomberg) -- Predicting how the gilt/bund spread will evolve is mainly a call on the forward monetary policy gap as proxied by the short sterling/euribor blue spread, Societe Generale strategist Jamal Meliani writes in client note.
  • Buy 100 Sept. 2016 gilt futures at 129.50 vs selling 88 Sept. 2016 Bund futures at 167.49; target 75bp, stop 110bp
  • SG’s economist is calling for a 25bp BOE rate cut as soon as 14 July, followed later by the reactivation of QE
  • By contrast, the 20bp of ECB deposit-rate cuts being priced by the forward Eonia curve by end-2017 is unjustified
    • ECB deposit-rate cut is a pure currency weapon, while cutting the deposit rate without lowering the refi rate would increase costs for banks
  • Other positives for gilts include seasonals and BOE gilt portfolio reinvestment policy
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jamal Meliani (Societe Generale SA)

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UUID: 7947283

HALISTER: RBS, Lloyds Most Exposed to Commercial Property, JPMorgan Says

RBS, Lloyds Most Exposed to Commercial Property, JPMorgan Says

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
JPM US (JPMorgan Chase & Co)
LLOY LN (Lloyds Banking Group PLC)
RBS LN (Royal Bank of Scotland Group PLC)

People
Raul Sinha (JP Morgan Securities PLC)
Sandy Chen (Cenkos Securities PLC)

Topics
Key Comm. Real Estate News

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UUID: 7947283