HALISTER1: MDC Partners Gains Most Since Aug. 7 After BMO Upgrade

MDC Partners Gains Most Since Aug. 7 After BMO Upgrade

(Bloomberg) -- MDC gains as much as 16%, most intraday since Aug. 7, on 69% 3-mo. avg vol. after BMO Capital Markets analyst Daniel Salmon upgrades to outperform, raises PT to street-low $22 from $20.
  • MDCA consistently addressed issues raised by SEC subpoena as best it could; improving strength of business too compelling incl. new, major unnamed CPG client won in 1Q
    • Expects 20%-25% premium to peers if SEC investigation is ended; WPP-LN, OMC, PUB-FR, IPG, 4324-TO, HAV-FF, 2433- TO
  • Opportunity to refinance debt starting this April
  • MDCA has 8 buys, 2 holds, 0 sells; avg PT ~$26: Bloomberg data
  • NOTE: Yday, MDC Partners 4Q Loss Cont. Ops Misses Est.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MDCA US (MDC Partners Inc)
WPP LN (WPP PLC)
4324 JP (Dentsu Inc)
FR US (First Industrial Realty Trust Inc)
2433 JP (Hakuhodo DY Holdings Inc)

People
Daniel Salmon (Bank of Montreal)

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UUID: 7947283

HALISTER1: RATES: Corporate Issuance Impact Has Increased, BofAML Says

RATES: Corporate Issuance Impact Has Increased, BofAML Says

(Bloomberg) -- Impact of corporate issuance on rates markets has increased further in past year, and “rates tend to continue selling off in the week after a supply shock,” BofAML strategists Ralph Axel and Shyam Rajan say in note.
  • Analysis incorporating Tuesday’s $22b non-floating rate supply “and the rise in rates and tightening of spreads that accompanied it” found that shows that since start of 2015, increase in UST rates in response to supply shock of certain magnitude is 10x greater for 5y, 7x greater for 10y, than in 2010-2014
    • Daily supply at least 1 standard deviation above 3-month avg spurred 2.4bp increase in 10y rates on avg vs 0.4bp in 2010-2014
  • In 5 trading days after a shock of that size since start of 2015, 10y rates have risen another 2bp on avg, “in stark contrast to the 2010-2014 period when rates showed no evidence of continued selloff in the week after a big supply day,” and “no bias one way or another after supply shocks”
  • “Trading with the momentum of a selloff after heavy corporate supply could be a compelling strategy,” as gross supply is likely to be near same amount as last year, and on a “more clumpy or irregularly paced” schedule, which “may result in larger market moves to trade”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ralph Axel (Bank of America Corp)
Shyam Rajan (Bank of America Corp)

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UUID: 7947283

HALISTER: Barclays Investment Bank CEO Tom King to Step Down Next Month

Barclays Investment Bank CEO Tom King to Step Down Next Month

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BARC LN (Barclays PLC)

People
Thomas King (Barclays PLC)
Antony Jenkins (Barclays PLC)
C Venkatakrishnan (Bear Stearns & Co Inc)
Chirantan Barua (Sanford C Bernstein & Co Inc)
James Staley (Barclays PLC)

Topics
Financial Firm Departures
Management Changes
Who's News - People

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UUID: 7947283

(2) *BARCLAYS SAYS TOM KING TO RETIRE AS CEO OF INVESTMENT BANK

*BARCLAYS SAYS TOM KING TO RETIRE AS CEO OF INVESTMENT BANK

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
BARC LN (Barclays PLC)

People
Thomas King (Barclays PLC)
James Staley (Barclays PLC)
Kathryn McLeland (Barclays PLC)

Topics
Management Changes
Who's News - People

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UUID: 7947283