Halister News

(Bloomberg) -- Germany to sell EU1b 2.5% 08/2046 at 11:30am CET; analysts generally optimistic on the sale, despite poor track record.

• Prior real bid/covers for 30Y auctions: 1.3x, 1.0x, 0.8x
• Tails: 6c, 11c, 15c

• Mizuho (Antoine Bouvet)
  • Little concession seen either on the 30Y roll or in 10s30s; expect the tap to go well given bond’s performance, specialness on repo suggests interest in the bond

• BNP (Patrick Jacq)
  • 30Y bund auction likely to show firm demand for EGBs, despite the very low yields

• Commerzbank (David Schnautz)
  • Recent auctions of the bond have been technically uncovered, often a bad omen; auctions in other maturities have been improving, which offers some hope

(Bloomberg) -- Geopolitical risk back as key contributor to risk-asset price performance in the past 24 hours, in the wake of the tragic events in Brussels. Synthetic indexes seeing most of credit-mkt gyrations though, as the prospect of ECB corporate-debt buying by end of 2Q continues to underpin cash bond valuations, Bloomberg strategist Simon Ballard writes.

• No capitulation from investors following Brussels attacks, but clear cautious bias; wider spreads over coming week(s) may even be seen as attractive selective entry point by investors
  • Challenging macro conditions and political uncertainty in Europe, U.K. and U.S. likely to be balanced against medium-term implicit ECB technical support for corporate risk
• Mkt volumes likely muted today, primary flow lackluster, as we approach Easter holiday weekend
• Brussels attacks trigger further modest rise in volatility for Risk Appetite Model
• CDX IG currently +1.2bps at 80.83 in overnight session; iTraxx Asia Ex Japan IG is currently -1.4bps at 149.39

NEWS

• Corporate News
• Kingfisher FY Adj. Pretax Beats Ests., Cautious on France
• Hermes Full-Year Earnings Beat Estimates on Leather Goods, Japan
• Sports Direct Sees FY Profit Near Bottom End of Forecasts
• Chubu Targets More Than 150b Yen of Ordinary Profit by FY2018
• Europe Feb. Commercial Vehicle Registrations
• EDF Started U.K. Reactor Hinkley B-7 at 9pm GMT Tuesday

• Financial News
• Credit Suisse to Cut More Jobs, Speed Up Trading Reductions
• Mitsui Forecasts 70b Yen FY Net Loss, Cites Impairment Charges
• Greek Bank Deposits Fell by ~EU1b to EU121b in Feb
• Swedbank Investor AMF Says Management Departures Hurt Brand

• Credit Rating News
• Fresnillo Ratings Confirmed by Moody’s, Outlook Stable

• Other News
• Yellen Will Meet 2% Inflation Goal, Judging by Treasury Yields
• Pimco Sees China Debt in Global Gauges by 2018 - With Caveat
• China Inc. ‘Bleeding’ From Yuan Devaluation Seeks Hedging Help
• Clinton, Trump Win Arizona Primaries, Cruz Takes Utah Caucuses
• ‘Brexit’ Fretting at Bank of England May Be About to Intensify
• Billions From Heaven? ‘Helicopter Money’ Option Wins Fans

ANALYST VIEWS

• Markets were looking to crawl back into their shell pre- Easter anyway, and (after the Belgian atrocities) looks like it is business over this side of the Easter holiday: creditmarketdaily.com

NEW ISSUES

• F. Van Lanschot EU500m 7Y CPT Covered MS +18
• ESM EU1b 1.625% 11/2036 Tap MS +13
• UNEDIC EU1.75b 11/2023 FRTR +17
• 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.
• NOTE: This is the last edition of EU CREDIT DAILY until after Easter. Publication will resume April 11.

(Bloomberg) -- Chairman Helen Dee appointed as lender’s interim president and CEO effective immediately after board accepted Lorenzo Tan’s offer to take a leave of absence, Rizal Commercial Banking says in stk exchange filing.

• Dee will be advised by vice chairman Cesar Virata and director Armando Medina
• Tan filed second offer of leave to clear his name in money laundering probe conducted by Senate and Anti-Money Laundering Council, according to e-mailed statement
• NOTE: Philippines Files Money Laundering Complaint Vs 2 More People Link
• NOTE: How $81 Million Slipped Through Philippine Cracks: Timeline Link