Halister News

(Bloomberg) -- Brexit uncertainty is having a clear damping effect on GBP credit risk with just over two weeks to the referendum, while EUR corporate bonds stay underpinned by the prospect of ECB CSPP buying from this week, Bloomberg strategist Simon Ballard writes.

• Marked underperformance of GBP IG and HY corporate bonds relative to their EUR counterparts over past week
  • EUR IG outperforming on CSPP; GBP HY weakness fueled by Brexit concerns
• Yellen sounded note of optimistic realism overnight; noted disappointing May jobs data and global macro fragility
  • Asia credit mkts trading higher as Fed June rate hike fear fades, and buoyed by energy and materials companies
• Notwithstanding Brexit and U.S. concerns, Euro Risk Appetite model highlights resilient bid for corporate credit risk

• CDX IG closed -1.4bps at 74.38 in overnight session; iTraxx Asia Ex Japan IG currently -1.4bps at 138.79

NEWS

• Corporate News
• Japan Marks Lowest-Ever Coupon on Corporate Bond in Toyota Sale
• New Look FY Rev Up 5.4%, Adj. Ebitda Up 7%
• VEB to Sell 180b Rubles of Assets Incl. Gazprom Shrs
• Burckhardt Compression FY16 Sales Rise 2.9%, Unchanged Dividend

• Financial News
• Nomura Sued by Six Taiwanese Banks Over Soured Syndicated Loan
• Citigroup Hires Ex-Barclays’s Jon Omori for Japan Equities

• Credit Rating News
• Increasing Fee Income May Help Japan Mjr Banks, Says S&PGR Rpt
• Fitch Rates Temasek Unit’s Collateralised Fund Obligation
• GAP Airports Outlook to Positive From Stable by Moody’s

• Other News
• Asia Bond Yields Touch Record Lows as Nomura Says Tide to Turn
• Clinton Clinches Democratic Presidential Nomination

ANALYST VIEWS

• The ECB will be in the market later this week for at least a year and its bond holdings won’t be coming back out, whatever happens. It will be price-insensitive and to all intents and purposes issuer-insensitive: creditmarketdaily.com

NEW ISSUES

• Air Liquide EU3b 5-Part Deal
• Commercial Bank of Qatar $750m 5Y MS +215
• Nykredit EU500m 3Y Senior Resolution Notes MS +110
• Tennet Holding EU500m 10Y, EU500m 20Y Green Bonds
• Vonovia EU500m 6Y MS +87, EU500m 10Y MS +108
• 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.