Halister News

(Bloomberg) -- Credit markets are poised to open this week with more spread consolidation as a global bond rout continues, Bloomberg strategist Simon Ballard writes.

• Financial markets still grappling with market implications of a Trump presidency; first team appointments announced
  • Rates curve steepening triggers defensive bias in weaker/peripheral Euro area sovereigns, protection buying in synthetics even as cash bond spreads remain anchored
  • Italian credit risk may come under increased scrutiny ahead of December 4 referendum
• Firm China Oct industrial production data underpins global macro outlook; a near-term support for risk appetite

• Bloomberg Barclays Eur-Agg Corporate index closed Friday at 113bps (+1bps); Bloomberg Barclays Eur HY index closed at 394bps (+7bps)
• CDX IG closed Friday +1.2bps at 75.97; iTraxx Asia Ex Japan IG is currently +8.7bps at 134.29 and iTraxx Australia quoted +2.9bps at 114.19

NEWS

• Corporate News
• Samsung Electronics Agrees to Buy Harman for $8 Billion in Cash
• RWE’s Net Loss Worse Than Expected as Power Prices Decline
• Lonmin FY Sales of 735,747 Platinum Oz Exceeded 700k Oz Forecast
• William Hill Continues to Expect FY Operating Profit at Top End

• Financial News
• Mizuho Profit Beats Estimates as Tax Gain Offsets Loan Slump
• Nomura Hires StanChart’s Pearson as Asia Ex-Japan FIG Head
• Handlowy 3Q Net 144.9m Zloty; Analyst Est. 145.9m Zloty

• Rating News
• Fitch: Most Asian Telcos to Come Under Pressure in 2017
• Global Sovereign Outlook Is Negative, Moody’s Says
• S&PGR Revises Brambles Liquidity Score To Strong; Rtgs Affrmd
• Fitch Affirms New Zealand’s LGFA at ‘AA+’; Outlook Stable
• S&PGR Revises Adani Abbot Point Terminal Pty Ltd Otlk To Neg; ‘BBB-’ Rtg Affirmed

• Other News
• U.S. 30-Year Yield Hits 3% as Pimco Says Rates May Be Bottoming
• Priebus Named Trump’s Chief of Staff, Bannon as Strategist

ANALYST VIEWS

• Although the widening in credit... was moderate so far, and the market by and large remains in good shape, the coming sessions will be crucial: Commerzbank
• It was going just swell for the income markets - until President-elect Trump came along. Love or loathe him, the expected unleashing of the fiscal dogs come 2017 has just about ruined fixed income’s 2016 performance: creditmarketdaily.com

NEW ISSUES

• No deals priced on Friday
• European IG credit pipeline here and HY credit pipeline 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.