HALISTER1: EU CREDIT DAILY: Argentina to Return; Roche, Danone, Remy Beat

EU CREDIT DAILY: Argentina to Return; Roche, Danone, Remy Beat

(Bloomberg) -- Perhaps unsurprisingly, any risk-market disappointment stemming from Doha or Brazil over the weekend seems to have been short-lived; the technical bid for yield and corporate credit risk remains robust with generic spreads already back on a tightening bias, Bloomberg strategist Simon Ballard writes.
  • Credit investor focus likely to be firmly on Argentina today as the nation prepares for its first foray into international bond mkt in 15 yrs; mkt expecting 4-tranche offering of 3Y, 5Y, 10Y and 30Y paper for up to $15b total
    • Investor rhetoric suggests IPT lvls fair, with books believed to be 2x subscribed, but default history of Argentina may dent some investors’ appetite for the name
  • Fundamental backdrop and outlook for global credit remains challenging
    • S&P notes YTD global corporate default tally of 46 issuers, highest since 2009, with first European default of 2016 last week (Norske Skogindustrier ASA)
  • Risk Appetite Model resolutely firm despite headline risks from Doha and Brazil
  • CDX IG currently -0.6bps at 77.88 in overnight session; iTraxx Asia Ex Japan IG is currently -1.1bps at 138.82
NEWS
  • Corporate News
  • Roche 1Q Sales Slightly Beat Estimates; Confirms 2016 Outlook
  • IBM Earnings Show It’s Still Struggling With New Product Growth
  • ABB Sees More Demand for Smart Motors as Costs in User Focus
  • Akzo Nobel Profit Beats Estimates After Extending Savings Push
  • Danone First-Quarter Sales Top Estimates Amid Dairy Recovery
  • Remy Cointreau 4Q Organic Sales Beat, FY16 Total Sales In Line
  • Publicis Quarterly Sales Beat Estimates on North American Growth
  • Financial News
  • Emirates NBD First-Quarter Profit Rises 8%; Misses Estimates
  • Eurobank’s Bancpost in Talks to Buy NBG’s Romanian Unit, ZF Says
  • Credit Rating News
  • Moody’s affirms QTMB’s ratings at A3
  • S&P Puts QT Mutual Bank ’BBB+/A-2’ Rtgs On Watch Developing
  • S&P Affirms Palmerston North ’AA/A-1+’ Rtgs; Otlk Stays Stable
  • Other News
  • China Said to Seek Control of $8 Billion Yum! Brands Unit
  • The Sub-Zero Club: Getting Used to the Upside-Down World Economy
ANALYST VIEWS
  • Has the “Draghi effect” changed the nature of the game...? That is, such is the need to get paper on board...that investors are finding themselves holding fewer and fewer of the cards: creditmarketdaily.com
NEW ISSUES
  • Alliander EU300m 10Y Green Bond MS +40
  • Eurofima EU600m 7Y MS +8
  • Bertelsmann EU500m 10Y MS +67
  • EIB GBP300m 2/2020 FRN Tap 3mL +29
  • Lower Saxony EU375m 0.375% 1/2023 Tap MS -
  • 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)

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