HALISTER: New Jersey Bank Pays Directors More Than Any Wall Street Board

New Jersey Bank Pays Directors More Than Any Wall Street Board

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
ISBC US (Investors Bancorp Inc)
REGN US (Regeneron Pharmaceuticals Inc)

People
Antonio Gracias (Valor Equity Management LLC)
Dennis Bone (The Choose New Jersey Inc)
Domenick Cama (Investors Bancorp Inc)
Doreen Byrnes (Investors Bancorp Inc)
Elon Musk (Tesla Motors Inc)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: Reduced Sizes to Support SPGB Supply

AUCTION PREVIEW: Reduced Sizes to Support SPGB Supply

(Bloomberg) -- Spain to sell 1.95% 04/2026, 1.95% 07/2030, 4.9% 07/2040 for EU1.5b-2b, as well as new 5Y I/L 0.3% 11/2021 for EU1.5b-2b.
  • Analysts optimistic on the sale, despite lack of concession, given reduced sizes; new 5Y I/L expected to see good demand
  • Mizuho (Antoine Bouvet)
    • Good opportunity to buy 10Y sector in the 2023-2026-2029 butterfly, despite its directionality
    • Neutral on the two other bonds; concession seen in 07/2040, offers the widest spread to the fitted curve, expect this to attract demand in micro-RV
      • 25Y bond also trades spread in repo, suggesting auction could benefit from short-covering demand
  • BNP (Parisha Saimbi, Ioannis Sokos)
    • New 5Y linker to meet good demand, support of the ECB’s expanded PSPP buying, a lack of 5Y EUR linker supply this year, new issue discount, strong positive carry in Q2 2016
    • Issue trades at a real yield of SPGBei-19 + 45bps in grey market, with inflation floor value of 3bps, looks fair value
  • Commerzbank (David Schnautz)
    • New 5Y linker should see smooth reception, given lack of nominal SPGB supply in this tenor, modest size
    • Small size in the longer-dated nominals seen as positive; recent underperformance of Spain vs semi-core, favorable supply outlook should also provide support
  • SocGen (Marc-Henri Thoumin)
    • No real concession priced in ahead of the taps; size is admittedly small, though cautious given longer-term fiscal, budget uncertainties
    • Best non-core risk-reward lies in the 2-5y sector, much shorter than those being sold today
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Antoine Bouvet (Mizuho Financial Group Inc)
David Schnautz (Commerzbank AG)
Ioannis Sokos (BNP Paribas SA)
Marc-Henri Thoumin (Societe Generale SA)
Parisha Saimbi (BNP Paribas SA)

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UUID: 7947283

HALISTER1: Business Insider: Nigerian President Buhari's promise to 'sweep government clean' hasn't even come close to happening

Business Insider: Nigerian President Buhari's promise to 'sweep government clean' hasn't even come close to happening

Alert: HALISTER1
Source: BLG (Blogs Web Content)

People
Donald Trump (Trump Hotels & Casino Resorts Inc)
Muhammadu Buhari (Federal Republic of Nigeria)
Goodluck Jonathan (Federal Republic of Nigeria)

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UUID: 7947283

HALISTER1: RBA’s Lowe Is An Inflation Targeter, Much Like Stevens: NAB

RBA’s Lowe Is An Inflation Targeter, Much Like Stevens: NAB

(Bloomberg) -- Philip Lowe is seen as the best internal RBA candidate, according to Alan Oster, chief economist at National Australia Bank.
  • Lowe is very much the same ilk as man he is replacing, Governor Stevens, in that he is an inflation targeter, Oster says in a phone interview
  • “He will do what needs to be done to bring balance to the economy,” he adds
  • “Philip is very competent and talented, one who won’t be swayed by politics on either side,” Oster says
  • AUD/USD up 0.5% to 0.7510; reaches 0.7514 session high after news of Lowe’s appointment
  • NOTE: Lowe to replace Stevens as RBA governor from Sept. 18
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
40005Z AU (Reserve Bank of Australia)

People
Alan Oster (National Australia Bank Ltd)
Philip Lowe (Reserve Bank of Australia)

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UUID: 7947283

HALISTER1: Greece Set for Rating Upgrade, France Risks Downgrade: Roubini

Greece Set for Rating Upgrade, France Risks Downgrade: Roubini

(Bloomberg) -- French economic fundamentals remain fragile despite improvements in some leading indicators and risks are skewed to the downside, Roubini Global Economics analyst Paulina Argudin writes in note to clients.
  • Low growth, rising public debt, lack of fiscal space, institutional and political constraints threaten country’s creditworthiness, making France a potential candidate for a rating downgrade
    • Roubini’s assessment suggests France’s fundamentals are in line with a rating of A-, three notches below the average among main rating agencies of AA
    • Roubini expects a rating move to occur in next 12 months; if a downgrade occurs, yields could rise
  • Greek sovereign risk has declined markedly over the past year, as internal price adjustments, euro depreciation helped the economy regain competitiveness
    • Roubini’s model points to rating upgrades from Fitch or Moody’s in next 12 months if Greece gets through first review of its latest bailout program with some kind of an agreement on debt relief
      • In that event, Greek CDS and sovereign yields would probably decline
    • If review does not go smoothly, Roubini expects euro volatility, resurgence of “Grexit” fears
  • NOTE, Earlier: VR Capital’s Deitz Likes Greek Bank Stocks, Government Debt
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Paulina Argudin (Roubini Global Economics LLC)

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UUID: 7947283

HALISTER1: EU CREDIT DAILY: Sentiment Is Fragile; Repsol, Morrison Beat

EU CREDIT DAILY: Sentiment Is Fragile; Repsol, Morrison Beat

(Bloomberg) -- Macro and political sentiment may feel fragile with secondary-market credit spreads biased toward widening in the past couple of sessions, but risk appetite remains underpinned, Bloomberg strategist Simon Ballard writes.
  • News of potential Tier 2 deal for Deutsche Bank assumes enduring investor appetite for yield; bank will hold investor meetings before possible sale of subordinated Tier 2 debt, according to a person familiar with the matter
  • Primary market remains main source of liquidity for investors, but price performance may be mixed
    • 20 of the 35 all-new syndicated bond tranches priced in Europe’s primary market last week have tightened; reflects delicate name/price balance at launch
  • EUR market volumes may be muted today by Ascension holiday; GBP credit focus on U.K. PMI data, London mayor and nationwide local elections
  • Risk Appetite Model seeing small consolidation in line with fragile risk-market sentiment
  • CDX IG closed -0.5bps at 83.58 in overnight session; iTraxx Asia Ex Japan IG is currently -2.6bps at 143.53
NEWS
  • Corporate News
  • Repsol 1Q Adj. Net EU572m; Est. EU261.2m
  • BT 4Q Sales Match Ests., Adj. Ebitda Climbs 14%
  • Rolls-Royce Says 1H Expected to Be Close to Breakeven
  • Morrison Sales Beat Estimates as Potts Turnaround Takes Hold
  • Smith & Nephew 1Q Rev. Misses Est., Still Sees Good FY16 Growth
  • Sunoco LP 1Q Rev. $3.2b, Est. $4.24b
  • Financial News
  • Nedbank Profit Forecast Unchanged as Old Mutual Split Continues
  • HDFC Said to Pick Banks for $400 Million IPO of Insurance Unit
  • Russia Revokes License of Moscow-Based Mostransbank
  • StanChart Names Aaron Gwak Head, Capital Markets ASEAN
  • Credit Rating News
  • NAB Ratings Unchanged After Half-Year Results: S&P
  • South Africa Junk Rating a Matter of Time as Economy Falters
  • Fitch: Japan’s Negative Rates Struggling to Find Traction
  • Fitch Affirms India’s Exim at ’BBB-’; Outlook Stable
  • Other News
  • Gross Sees QE4 Ahead as Citi Says Investors Revive Easing Views
  • Fed, Brexit Stress Likely to Ease in a Few Weeks: Macro View
ANALYST VIEWS
  • The ECB has made for an asset class that is managing to largely withstand the severe ups and downs associated with oil, equities and at times govies. We’ve suggested before, boring is good: creditmarketdaily.com
NEW ISSUES
  • Autoroutes Du Sud EU500m 10Y MS +52
  • FCE Bank EU750m 7Y MS +135
  • Kommunekredit EU500m 10Y MS +6
  • Land NRW EU1b 20Y MS +17
  • Nederlandse Gasunie EU650m 10Y MS +42
  • Rentenbank GBP350m 5Y UKT +31
  • Rexel EU650m 7NC3 at Par to Yield 3.5%
  • 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
REP SM (Repsol SA)

People
Aaron Gwak (Standard Chartered PLC)

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UUID: 7947283