Halister News

(Bloomberg) -- Market volumes likely to continue picking up this week as traders and investors return to work. Notwithstanding the U.S. holiday yesterday, the primary market delivered ~EU4.7b of liquidity and another busy session is expected today, Bloomberg strategist Simon Ballard writes.

• Risk assets gaining in Asia overnight and S&P500 futures trading higher should help underpin risk appetite this morning
• Secondary cash bond spreads edged tighter again yesterday and the quality curve flattened further as higher-yielding assets outperformed on persistent hunt for yield
  • Bloomberg Barclays Eur-Agg Corporate index closed yday at 107bps (-1bp); Bloomberg Barclays Eur HY index closed at 355bps (-4bps)

• Risk Appetite Model shows further steady decline in volatility and spread dispersion; new ytd lows
• CDX IG closed -0.1bp at 75.90 in overnight session; iTraxx Asia Ex Japan IG currently -0.6bps at 111.06 and iTraxx Australia quoted -0.6bps at 97.01

NEWS

• Corporate News
• Bayer Sweetens Monsanto Bid Again as Takeover Talks Advance
• Formosa Petrochemical Aug. Sales Fall 9.1% M/m to NT$41.7b
• Redrow FY Revenue Rises 20%; Says On Track for Further Growth
• Zumbtobel 1Q Net Rises 37% After Cost-Saving Measures Kick In
• Siemens Taps Big-Battery Demand in Growing German Storage Mkt
• General Motors Settles Next Federal Ignition-Switch Cases Set for Trial
• Airbus Wins $6.5 Billion Orders From Vietnamese Carriers

• Financial News
• Austria Opens Final Chapter in $12 Billion Heta Debt Dispute
• Singapore to Make More Robust Risk Assessment of Finance Firms
• NAB Considers Tier 2 Aussie Bond Deal, Plans Investor Update

• Credit Rating News
• Alinta Energy Rating Raised to BB From BB- at S&PGR
• S&PGR Affirms TPE ’BB’ Issue Rating; Outlook Stable

• Other News
• ECB Faces Bond-Buying Shuffle With QE Extension on the Cards
• Australia 2Q Net Exports Cut 0.2% Pt From GDP, Est. Flat
• After Summer of Profits, America’s Bond Traders Are on Edge

ANALYST VIEWS

• Investors have suddenly seen their animal spirits revived with enthusiasm towards the U.S. financials encouraging US$1.4bn into the sector last week. In a way, this is a contrarian position against the yield curve flattening any further or indeed inverting: Jefferies
• The default rate is at low levels and event risk, news flow and the like not really suggesting we ought to be concerned. The grind is excruciating!: creditmarketdaily.com

NEW ISSUES

• Aviva GBP400m 33NC13 Tier 2 UKT +363
• BAT International Finance GBP650m 36Y UKT +107
• CFF EU1b 10Y Covered MS -5
• Credit Mutuel Nord Europe EU300m 10Y T2 MS +195
• Hemso Fastighets EU500m 10Y MS +77
• Land NRW EU500m 0.625% 7/2031 Tap MS -1
• Paragon Group GBP150m 10NC5 Tier 2 7.25%
• UBI Banca EU1b 10Y Covered MS +19
• 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.