EU CREDIT DAILY: BOE Meeting Watched; Alstom 1Q Sales Rise
Source: BFW (Bloomberg First Word)
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David Cameron (United Kingdom of Great Britain and Northern Ireland)
William Gross (Janus Capital Management LLC)
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(Bloomberg) -- GBP credit risk in focus as Theresa May takes over from David Cameron as prime minister today ahead of the anticipated BOE easing tomorrow, with both events helping steady the risk asset ship, Bloomberg strategist Simon Ballard writes.
Alert: HALISTER1- Italian financials well underpinned this week on optimism of solutions to balance sheet problems, NPLs; authorities seeking to protect/reassure retail (sub) debt investors
- Asian credit mkts firmer again overnight, may suggest positive opening for EUR corp bond space later
- But robust demand/supply dynamics still seem founded in assumption of continued accommodative global monetary policy rather that buoyant corp fundamentals
- Risk Appetite Model sees declining volatility and spread dispersion as sentiment recovers
- CDX IG closed -1.3bps at 75.97 in overnight session; iTraxx Asia Ex Japan IG currently -2.2bps at 125.23
- Corporate News
- Alstom 1Q Sales Rise 9% Y/y, Maintains 2020 Targets
- Burberry 1Q Retail Sales Beat Estimates
- DKSH 1H Sales, Operating Profit Beat Estimates; Sees Growth
- Capital & Regional 1H LFL Contracted Rent Rises 3.2% Y/y
- Nokia, Samsung Expand Intellectual Property Cross License Pact
- Steinhoff to Buy Rest of Poundland for 220p/Shr Plus 2p Div
- Casino 2Q Sales Beat Ests., French Retail Sales In Line
- Financial News
- Norway’s Largest Bank Beats Retreat From Oil as Losses Mount
- Bank Muscat First-Half Profit Climbs 0.7%; Interest Income Rises
- Natixis Estimates Cut at Mediobanca, Still a L/T Core Holding
- Credit Rating News
- BlackRock Warns Australia at Real Risk of Losing AAA Debt Rating
- Crown BBB Rating Affirmed by S&P, Off Watch Neg; Outlook Stable
- Other News
- Pimco Loads Up on Treasuries as Gundlach to Gross Voice Caution
- Bank Options Priced for Earnings Pain as Brexit Delays Rate Hike
- Reserve Bank of India Braces for Basel Battle on Sovereign Bonds
- We see Brexit as having negative implications for the earnings of U.K. banks and those European banks that have substantial exposure to the U.K., but do not see it as a solvency or liquidity event: CreditSights
- Spreads - on an index basis - are still 45bp wider than their historic tight. The ECB’s buying cares, the ongoing demand by fixed income investors in search of yield and the subsequent squeeze on liquidity should see us tighten and flatten as high/low beta risk compresses: creditmarketdaily.com
- Baden-Wuerttemberg EU750m 2Y FRN 6mE -19
- BNP Paribas EU500m 0.75% 11/2022 Tap MS +50
- Commerzbank EU500m 0.5% 6/2026 Cov Tap MS -5
- Cooperatieve Rabobank $300m 5Y Bond MS +95
- Deutsche Bahn EU350m 5Y MS +15
- ESM EU2.5b 0.5% 2026 Tap MS -14, EU2.5b 26Y MS +14
- Muenchener Hypo $600m 3Y Reg S Covered MS +48
- National Bank of Oman $100m 3.125% 10/2019 Tap MS +200
- PerkinElmer EU500m 10Y MS +165
- State Transport Leasing Co. $500m 5YR 5.95%
- 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.
Source: BFW (Bloomberg First Word)
People
David Cameron (United Kingdom of Great Britain and Northern Ireland)
William Gross (Janus Capital Management LLC)
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UUID: 7947283