Halister News

(Bloomberg) -- Germany to sell 0.5% 02/2026 for EU4b at 11:30am CET. Analysts highlight the bond trades special in repo, suggesting a strong short base, which is likely to support the auction.

• Mizuho (Antoine Bouvet)
  • Optimistic about this auction; bond currently trades special in repo, indicating a short base among dealers
  • 10Y roll looks slightly cheap, though prior rolls have tended to cheapen later in auction cycle; risk-reward therefore unattractive

• Commerzbank (Benjamin Schroeder)
  • Bund yields have risen since ECB meeting as rate cut expectations were priced out, see limited risk of further back-up in bund yields remote
  • Unlike 2Q last year, long-end yields much better anchored via negative short-end yields; Bundesbank’s PSPP purchases for this year now set to surpass total gross bund supply

• ING (Martin van Vliet)
  • 10Y bund traded “super special” in the repo market yesterday, reflects large short position of dealers, expect to see decent demand at the auction
  • In RV, bond trades cheap vs old, high-coupon 2027 and 2028 bunds, offer 13bps pick-up to the DBR 0.5 02/2025 since the end of Jan.

(Bloomberg) -- The near-euphoria in credit markets last week after the ECB announced corporate-bond purchases appears to have been short-lived. Markets now seem to be “back to normal” as global macro uncertainty damps risk asset sentiment once again and credit spreads consolidate across the quality curve, Bloomberg strategist Simon Ballard writes.

• No change expected from FOMC, but event may be enough to keep European credit investors sidelined with a cautious bias
  • Spreads were better offered on Tuesday; EUR IG cash index 1.2bps wider at 76.02 OAS, EUR HY index +10bps at 475.18
• Lower-rated risk most susceptible to spread volatility; Deutsche Bank 6% CoCo closed ~1.5 pts lower Tuesday, after strengthening to more than EU86 post-ECB from EU70.40 on Feb 9
• Risk Appetite Model highlights return of weak bias with pickup in spread dispersion and volatility
• CDX IG currently +0.7bps at 88.89 in overnight session; iTraxx Asia Ex Japan IG is currently +0.8bps at 138.16

NEWS

• Corporate News
• Smiths Group Says 1H Trading Solid, FY Expectations Unchanged
• ArcelorMittal S. Africa Proposed B-BBEE Deal Process Ongoing
• Volkswagen Europe Market Share Continues Slide as Recalls Start
• Abenomics Seen Stalling With Toyota Pushback Against Raise
• European February Car Sales Rise 14% For 30th Consecutive Gain
• Stephen Elop Joins Telstra After Nokia, Microsoft Turmoil
• Casino Said to Seek Second-Round Bids for Vietnam Unit
• LafargeHolcim Beset by Departures, Sagging Stock Hurts Investors

• Financial News
• Raiffeisen Posts 2015 Profit, Confirms Medium-Term Targets
• Munich Re Continues Share Buybacks Amid Lower Profit Outlook
• MoneySupermarket Shares Sold at 328p by Founder Simon Nixon

• Latest Credit Rating News
• Moody’s Revises Outlook for Saudi Banks to Negative on Oil Slump
• S&P Afrms IAG At ’A’, Raises WFI To ’AA-’; Subs Afrmd At ’AA-’
• Casino Rating Discussed at S&P Meeting, Les Echos Reports

• Other Key News
• BHP CEO Says ‘More Bearish’ on Iron Ore as Price Surge Reverses
• LSE Agrees to Merge With German Rival to Create European Titan
• Bernie Who? Clinton’s Wins Allow Her to Turn Her Fire on Trump

ANALYST VIEWS

• ECB bond-buying program will become more of an issue in time as bubbles are maintained or created in other asset classes as liquidity chases yield; while it looks good for IG, the “push-down” effect will also benefit the HY market: creditmarketdaily.com

NEW ISSUES

• State of Berlin EU600m 10Y MS -1
• Brisa Concessao Rodoviaria EU300m 7Y Snr Sec MS +172
• Deutsche Bank EU1.5b 3Y MS +110
• Dry Mix Solutions EU150m 7NC1 Snr Sec FRN E+550 at 99
• FCA Capital Ireland EU500m 9/2020 MS +132
• Municipality Finance EU1b Long 5Y MS -1
• RELX Finance EU750m 5/2026 MS +85
• RBS EU1.5b 7Y MS +230
• Santander Issuances EU1.5b 10Y T2 MS +268
• Scentre Management Limited EU500m 7Y MS +117
• Sparebanken Sor Boligkreditt EU500m 5Y Cov MS +22
• Thyssenkrupp EU100m 2.75% 3/2021 Tap 2.625%
• 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.

(Bloomberg) -- Senators investigating how $81m of stolen funds from Bangladesh reserves were laundered in Philippines will try to get local casinos to detail fund transfers, Senator Serge Osmena tells reporters in Makati City.

• “We’re looking for electronic trail and the casinos may be able to tell us if they cooperate in the probe,” he says
• Senate blue ribbon committee invited representatives of Bloomberry’s Solaire casino at 2nd hearing on Thursday
• Also invited is Cristino Naguiat, head of Philippine Amusement and Gaming and regulator of local casinos
• Osmena says closed-door hearing with Rizal Bank branch manager Maia Santos Deguito will clarify how fictitious accounts used to launder money were set up
• “Deguito is a key player here because if you don’t have the cooperation of the branch manager, this could not have not been done, unless it was done at the head office,” Osmena says
• Bank Secrecy Law being used to protect criminals: Osmena
• NOTE: Anti-Money Laundering Council filed a complaint against Deguito for allegedly aiding withdrawal of stolen funds from Bangladesh central bank Link, her lawyer Ferdinand Topacio declined to comment on complaint; at Tuesday hearing, Deguito invoked right against self- incrimination and asked for closed-door session