Halister News

(Bloomberg) -- Perceived weakness in global growth and credit market focus on Wednesday’s FOMC rate decision could damp investor activity and trading volumes early this week. With the U.K. EU referendum due next week, a cautious tone is likely to encompass global credit markets in coming days, Bloomberg strategist Simon Ballard writes.

• Asian equities in the red overnight as May Chinese fixed- asset investment data disappointed
  • Risk appetite may also be undermined by Florida mass shooting over the weekend amid concern over geopolitical risk
  • Brexit fears intensify and may fuel further underperformance of GBP corp risk vs EUR corp ahead of June 23 vote
• Risk Appetite Model registers modest weakness ahead of FOMC, EU referendum
• CDX IG closed -0.4bps at 77.43 in Friday session; iTraxx Asia Ex Japan IG currently +2.2bps at 143.73

NEWS

• Corporate News
• Japan’s Second-Biggest Bond Fund Doesn’t See Value in Yen Debt
• IMF Urges China to Tackle ‘High’ Corporate Debt Immediately
• Alexander Forbes FY Profit Rises to 874m Rand vs 360m Rand

• Financial News
• Morgan Stanley Clashes With Goldman on Bonds as Market Surges
• Japan Top Equity Strategist Sakagami Said to Quit SMBC Nikko
• Brexit Sends Danish 30-Year Mortgage Costs Below U.S. Tsys

• Credit Rating News
• Rising Risks in Oil & Gas Manageable for Singapore Banks: Fitch
• Moody’s Says Air NZ’s Stake Sale Is Credit Positive for Virgin
• S&PGR Affirms ’BB/B’ Ratings On HSBC Bank Brasil, Otlk Neg

• Other News
• Most Expensive Bond Mkt in History Has Come Unhinged. Or Not.
• German Government Bonds in ‘Bubble Territory,’ Allianz CIO Says
• China H-Share Rally Unravels as Stocks Sink Most Since Feb
• Trans-Atlantic Swaps Rift Spurs Concern of Damage to U.S. Market
• Trading Floors Go Quiet Across Asia as Equity Desks Face the Axe

ANALYST VIEWS

• Because we can’t see the end, and are afraid to bet against it as that will impact performance, we trade into it. We add risk. May as well keep going, we’re all in it together: creditmarketdaily.com

NEW ISSUES

• BNZ Intl Funding EU750m 5Y Covered MS +18
• ContourGlobal EU550m 5NC2 Snr Sec Notes 5.125%
• Otto EU250m 7Y 2.625%, MS +245.8
• Titan Cement EU300m 5NCL Notes 3.5%
• 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.
• NOTE: EU CREDIT DAILY won’t be published June 14-16; regular coverage will resume Friday, June 17.