EU CREDIT DAILY: Post ECB Consolidation; Sainsbury, SocGen, NBG
(Bloomberg) -- After the magnitude of the positive reaction to the ECB at the end of last week, cash corp bonds continue to perform, but synthetic indexes consolidated a little on Monday, Bloomberg strategist Simon Ballard writes.
- All eyes remain on the global macro and monetary policy outlook; with the BOJ keeping rates unchanged overnight, BOE, U.K. budget, SNB and FOMC among this week’s other key data points
- Gyrations in the oil price will also tend to drive sentiment across the risk asset space, particularly in more liquid equity and credit derivative indexes
- Cash bonds well underpinned, although mkt still awaiting precise rules & details of ECB proposed corp bond buying initiative
- Risk Appetite Model highlights recent spread performance has come at cost of higher volatility
- CDX IG currently -0.2bps at 85.09 in overnight session; iTraxx Asia Ex Japan IG is currently -0.5bps at 136.04
NEWS
- Corporate News
- JD.Com Gains on Alibaba as Spending Jumps, Profit Estimates Drop
- Kobe Steel Aims to Return to Profit at Excavator Unit
- Ocado 1Q Retail Gross Sales Beat Ests.
- H&M Sales Miss Estimates in February, 1Q
- Balfour Beatty Says Order Book, Revenues Stabilising
- Sainsbury Posts First Quarterly Sales Increase in Two Years
- Vivendi May Ask for Telecom Italia Board Renewal in May: Sole
- Financial News
- Societe Generale to Buy Kleinwort Benson from Oddo Group
- Sberbank 4Q Net Income 72.6B Rubles; Est. 68.2B Rubles
- Natixis Says Reorganized CIB to Be Managed by Riahi, Vincent
- Standard Bank Economist Hart Quits After Twitter Suspension
- National Bank of Greece 2015 Net Loss EU2.62b Vs EU255m Loss
- Nomura Erases Losses After BOJ Keeps Policy Unchanged
- Rating News
- Australia’s Stable AAA Sov Credit Rating Affirmed by Fitch
- Fortescue Credit Rating Cut by Moody’s After Iron Ore Slump
- Other News
- Bank Debt Getting Uglier for This $9 Billion Nordic Fund Manager
- U.K. Has Nothing to Gain From Brexit: European Commissioner Hill
- Copper Leads Industrial Metals Declines Amid Rising China Stocks
ANALYST VIEWS
- 1Q is going to be good, and we expect issuance, tighter spreads and investors scurrying around to get risk on board will all sustain a feel-good factor and a positive tone through the second quarter: creditmarketdaily.com
NEW ISSUES
- BP Capital Markets $500m 5Y MS +175
- Femsa EU1b 7Y MS +155
- Fluor EU500m 7Y MS +150
- Helaba EU1b 11/2022 Covered MS -3
- Rabobank EU2b 10Y MS +68
- UBS Group $1.5b PNC5 AT1 Notes 6.875%
- Yorkshire Water Services GBP200m 30NC7 UKT +240
- 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.
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Tickers 2539Z GR (European Central Bank)
ETE GA (National Bank of Greece SA)
GLE FP (Societe Generale SA)
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