HALISTER1: EU CREDIT DAILY: Brexit Polls Weigh on GBP Mkt; Telefonica Plan

EU CREDIT DAILY: Brexit Polls Weigh on GBP Mkt; Telefonica Plan

(Bloomberg) -- Friday’s dismal U.S. jobs report appears to have removed one of the key June event risks to corporate bonds. Risk assets respond positively to lower U.S. rates pricing, but the anemic macro outlook is still weighing on credit metrics, Bloomberg strategist Simon Ballard writes.
  • With Fed rate-hike prospect deferred, focus for risk-asset sentiment will now bounce between the U.K. referendum and the ECB’s CSPP
    • Latest referendum polls favoring Brexit, weighing on GBP corporate credit and broader sentiment; uncertainty may undermine risk appetite in coming weeks
    • Asian equities mixed overnight, setting tone for cautious opening to EUR credit markets today
  • Risk Appetite Model reflects buoyancy created by CSPP
  • CDX IG closed -0.6bps at 77.33 in overnight session; iTraxx Asia Ex Japan IG currently -0.02bps at 141.71
NEWS
  • Corporate News
  • SoftBank Gets Serious About Tackling Debt With Asset Sales
  • Temasek Unit Said to Plan Debt Tied to Private Equity Stakes
  • Telkom Profit Falls as South African Phone Company Sheds Jobs
  • Sasol Sees Full-Year Profit Ex-Items Down 10% to 30%
  • Financial News
  • Telefonica to Offer Mobile Banking Service, Expansion Reports
  • Rothschild & Co Says It Plans to Merge with Martin Maurel
  • Credit Rating News
  • South African Assets Set for Gains on S&P Junk Rating Reprieve
  • S&PGR Keeps Macquarie Life ’A-’ Rtgs On CreditWatch Negative
  • More Australia Firms in Credit-Positive Zones on Debt Cut: Fitch
  • Other News
  • Global Yields Fall to Record as U.S. Jobs, Brexit to Hamper Fed
  • Pound Tumbles, Volatility Jumps After Polls Show Brexit Momentum
  • Europe’s Worst Bond Market Doesn’t Look Like It’s Getting Better
  • Negative Rate Job Half Done as Japan Banks Cut Bonds, Keep Cash
  • Qatari Fund Buys $2.5 Billion Singapore Tower From BlackRock
ANALYST VIEWS
  • The (ECB’s CSPP) is... designed to manipulate corporate bond prices (higher); when the cycle eventually turns, someone is going out in a blaze of glory - and the ECB then risks becoming the corporate bond market’s “bad bank": creditmarketdaily.com
NEW ISSUES
  • NIB EU500m 8Y Green Bond MS -17
  • SES EU750m PNC5.6 Hybrid 4.7%
  • 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)

Topics
Leveraged Finance

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