HALISTER1: David Cameron to Seek More Transparency From Offshore Firms Buying in Britain

David Cameron to Seek More Transparency From Offshore Firms Buying in Britain

Alert: HALISTER1
Source: NYT (New York Times)

People
David Cameron (United Kingdom of Great Britain and Northern Ireland)
John Kerry (United States Department of State)
Muhammadu Buhari (Federal Republic of Nigeria)

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UUID: 7947283

HALISTER1: Ex-BSI Banker Faces New Charge in Singapore’s 1MDB Related Probe

Ex-BSI Banker Faces New Charge in Singapore’s 1MDB Related Probe

(Bloomberg) -- Former BSI SA private banker Yeo Jiawei faces a new charge related to cheating of bank, prosecutor says in Singapore court Thursday.
  • Seventh charge, in addition to previously filed charges of money laundering and obstructing justice, “opens new front in investigation”, Second Solicitor-General Kwek Mean Luck says
  • Kwek says 18 witnesses have been interviewed for case
  • NOTE: Ex-BSI Banker Yeo Faces Three More Charges in 1MDB- Linked Probe {FIFW NSN O6P5Y76K50Y8 }
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
0206021D MK (1Malaysia Development Bhd)
BBTG11 BZ (BTG Pactual Group)

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UUID: 7947283

HALISTER1: Business Insider: Britain's housing market is about to be cleansed of dirty money

Business Insider: Britain's housing market is about to be cleansed of dirty money

Alert: HALISTER1
Source: BLG (Blogs Web Content)

Tickers
13347Z US (International Monetary Fund)

People
David Cameron (United Kingdom of Great Britain and Northern Ireland)

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UUID: 7947283

HALISTER1: Korean Won, Taiwan Dollar, Yuan Forwards Most Active on DTCC

Korean Won, Taiwan Dollar, Yuan Forwards Most Active on DTCC

(Bloomberg) -- USD/KRW non-deliverable forwards account for 40.8% of total volume today, according to trades reported to DTCC; USD/TWD second-most active at 13.8%, USD/CNY third-most active at 11%.
  • Notional amounts traded include:
    • $250m+ of USD/KRW at 1,165.95; matures June 15
  • Total volume was $8.8b as of 3:10pm HKT; global total yesterday was $58.8b, with USD/BRL accounting for 18.5%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: Italy to Overweight Long-End Issues

AUCTION PREVIEW: Italy to Overweight Long-End Issues

(Bloomberg) -- Italy to sell 0.10% 04/2019s for EU1.75b-2.25b, 0.95% 03/2023 for EU2.25b-EU2.75b, 1.65% 03/2032 for EU1b-1.5b, off-the-run 3.5% 03/2030 for EU0.5b-1b at 11am CET.
  • Analysts see value in 3Y on the curve; views mixed on 7Y, while 15Y trades rich, due to domestic insurance demand.
  • Mizuho (Antoine Bouvet)
    • Noteworthy that auction is overweight 15Y sector, with up to EU2.5b to be sold, twice the average size of 15Y supply since the start of the year
    • 7Y issue looks cheap on the fitted curve, though may only start performing toward the end of its auction cycle
  • ING (Martin van Vliet)
    • 3Y trades at 2-3bps concession to fitted low-coupon BTP curve, looks attractive in ASW terms for bank treasuries, given positive ASW spreads for semi-core is generally in 10Y+
    • 7Y bond trades around flat to the curve; 03/2032 have persistently traded rich, given demand from domestic insurance companies for bonds trading close to or preferably below-par
  • Unicredit (Elia Lattuga)
    • Redemptions for EU14b will provide some support; first tap of the 3Y, recent front-end steepening suggests extending duration into auction bond, 3Y has also cheapened vs neighbors
    • 7Y has cheapened vs neighbors; looks attractive vs 04/2022 and 03/2024
    • Both longer bonds 15Y-20Y BTPs have cheapened recent amid recent 50Y supply speculation; though still remain at rather rich lvls vs 10Y, 30Y
  • SocGen (Marc-Henri Thoumin)
    • 3Y has seen minor concession vs other BTPs; offers good pickup vs SPGBs, expect convergence ahead
    • BTP 03/2023 has underperformed 11/2022 ahead of the auction; 2020/2023 spread looks steep outright and also vs SPGBs, which may help demand
    • Both longer-dated bonds look rich vs other BTPs, though has been some concession vs SPGBs, expect moderate interest in these bonds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Antoine Bouvet (Mizuho Financial Group Inc)
Elia Lattuga (UniCredit SpA)
Marc-Henri Thoumin (Societe Generale SA)
Martin Van Vliet (ING Groep NV)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: Ireland Six-Year Bond Seen Attractive on Curve

AUCTION PREVIEW: Ireland Six-Year Bond Seen Attractive on Curve

(Bloomberg) -- Ireland to sell 0.8% 03/2022 for EU750m at 11am CET. Analysts see the bond as being attractive on the curve and vs France; they also highlight the bond’s richness in repo.
  • ING (Martin van Vliet)
    • Bond trading below -1% in repo yesterday, has cheapened more than 5bps vs OATs since the beginning of the month
    • Seems scope for Ireland to make renewed/further progress in its transition toward semi-core status, probable rating upgrade from Moody’s tomorrow
    • Given strong trade links with U.K. convergence to semi- core may be delayed until after Brexit vote on EU
  • Mizuho (Peter Chatwell)
    • 6Y Irish spreads vs OATs have widened in excess to what their relationship with the Italy/Germany 5Y spreads suggests; now just 45bps, where support has repeatedly been found
    • In relative value, May 22 stands cheap on the Irish fitted curve, has been cheapening; auction bond attractive on spread and in relative value
  • Danske Bank (Anders Moller Lumholtz)
    • Bond looks very cheap vs France as Brexit concerns have weighed; announcement caused cheapening of the bond that is now trading special, should attract strong demand
    • ECB QE will buy ~EU8b in Irish bonds in the remainder of the year, supports spread compression vs semi-core peers
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Martin Van Vliet (ING Groep NV)
Anders Lumholtz (Danske Bank A/S)
Anders Moeller Lumholtz (Danske Bank A/s)
Peter Chatwell (Mizuho Financial Group Inc)

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UUID: 7947283

HALISTER1: EU CREDIT DAILY: Constructive Consolidation; RWE, C. Agricole

EU CREDIT DAILY: Constructive Consolidation; RWE, C. Agricole

(Bloomberg) -- Credit sentiment feels as though it may be stalling under the weight of new issuance and damped by persistent global macroeconomic concerns, Bloomberg strategist Simon Ballard writes.
  • Still, there is likely to be no capitulation, and the ECB’s corporate-sector purchase plan will offer strong technical support within demand-supply dynamics over coming months; however, it may be natural to expect some near-term consolidation as market digests recent supply
  • Flows in GBP credit likely to remain light ahead of macro data later; BOE rate decision, minutes and inflation report due 12pm BST; press conference due to start at 12.30pm local time
  • Gyrations in equity indexes likely to be driven by mixed corporate earnings announcements, may also affect direction of synthetic credit risk
    • Cash bonds’ lower relative liquidity/buy-and-hold status should continue to offer more stable price performance vs CDS
  • Risk Appetite Model holds steady as volatility eases and spread dispersion edges modestly higher
  • CDX IG currently quoted +0.5bps to 81.11 in overnight session; iTraxx Asia Ex Japan IG is currently +0.4bps to 143.61
NEWS
  • Corporate News
  • Nissan in Talks for Stake in Scandal-Hit Mitsubishi Motors
  • LafargeHolcim Earnings Miss Estimates on Brazil, Russia Slowdown
  • Toshiba Raises Net Income Forecast on Sale of Appliance Division
  • ITV Says Revenue Growth Continuing; Sees Good 1H Profit Growth
  • RWE First-Quarter Profit Beats Estimates on Trading Gains
  • Rank Group 19-Week LFL Rev. Up 3%; Sees FY In Line With Plan
  • Financial News
  • Credit Agricole Quarterly Profit Falls on Decline in Trading
  • Deutsche Pfandbriefbank 1Q Pretax Profit Drops 12% to EU45m
  • Zurich Insurance Net Beats Estimates as Overhaul Continues
  • NBAD CEO Thursby Says Retail, Bonds, Forex to Drive Earnings
  • Generali Profit Drops After Year-Earlier Gain Isn’t Repeated
  • MetLife Hires Wells Fargo’s Hall to Lead Investor Relations
  • Natixis Said to Force Dubai Group Sale of EFG, Bank Muscat Stake
  • UniCredit Plans to Cut 2,045 Jobs in Austria by 2018: Presse
  • Credit Rating News
  • S&PGR Assigns ’BBB+’ Rating To Con Edison’s $500 Million Notes
  • Moody’s Assigns Japan Post Bank A1 Long-term Domestic FX Rating
  • Other News
  • Investors Fleeing $9 Trillion of Negative Yields Fuel Bond Binge
  • LendingClub Tries to Reassure Investors as Bond Deals Stall
  • ECB Can Still Pull Rabbits Out of the Hat, Council Member Says
  • World’s Most Expensive Bonds Keep Selling in Land of Minus Rates
ANALYST VIEWS
  • US corporate borrowers have accounted for over 25% of YTD IG euro-denominated non-financial corp debt...another unintended consequence of the ECB’s CSPP: creditmarketdaily.com
NEW ISSUES
  • Agence France Locale EU500m 3/2023 OAT +31
  • State of Berlin EU500m 16Y MS +11
  • City of Bochum EU115m 10Y MS +50
  • DG Hyp EU500m Short 10Y Covered MS -2
  • EIB EU350m 1.125% 9/2036 Tap MS +1
  • FMS Wertmanagement $500m 2Y FRN 3mL +9
  • General Motors Financial EU500m 4Y MS +125
  • Johnson & Johnson EU4b 4-Part Deal
  • Kraft Heinz Foods EU1.8b 8Y, 12Y Bonds
  • Next GBP300m 12Y UKT +205
  • Santander Consumer Finance EU750m 5Y MS +105
  • Spain EU3b 50Y MS +250
  • Total EU1.75b PNC6 Hybrid Bond 3.875%
  • WEPA Hygieneprodukte EU450m 8NC3 Notes at 3.75%
  • 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)

Tickers
RWE GR (RWE AG)

People
Alex Thursby (National Bank of Abu Dhabi PJSC)

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UUID: 7947283