HALISTER1: EU CREDIT DAILY: Central Bank Focus; EDF Cash-In, MQGAU

EU CREDIT DAILY: Central Bank Focus; EDF Cash-In, MQGAU

(Bloomberg) -- Credit-market sentiment likely to be firm at the start of the week following weakness late last week, though focus squarely on Wednesday’s FOMC and BOJ meetings, Bloomberg strategist Simon Ballard writes.
  • Fed funds’ futures pricing just 20% probability of a U.S. rate increase this week
  • Latest statement from ECB CSPP due later today; should help to underscore backstop bid status of ECB for EUR corp bonds
    • Asian credit markets firmer overnight and EU, U.S. equity futures higher this morning; notwithstanding idiosyncratic headline risk, corporate bonds should remain asset class of choice for incremental yield
  • Risk Appetite Model: Small uptick in vol and spread dispersion highlights mkt fragility
  • Bloomberg Barclays Eur-Agg Corporate index closed at 111bps (+1bps) on Friday; Bloomberg Barclays Eur HY index closed at 412bps (+5bps)
  • CDX IG closed +1.2bps at 78.35 in overnight session; iTraxx Asia Ex Japan IG currently -1.3bps at 112.03 and iTraxx Australia quoted -0.1bps at 98.62
NEWS
  • Corporate News
  • Noble Group Hunts Investor as Profit Seen Up to 2 Years Away
  • Petra Diamonds Beats Est. for Adj. Ebitda, Won’t Declare Div.
  • HTC Surges After Report New Smartphone Model to Be Unveiled
  • EDF Cashes in on U.K. Heatwave That Sent Power Prices Soaring
  • Financial News
  • Macquarie Bank Reiterates FY17 Forecast
  • China Bank to Loan $450B to Help Modernize Agriculture by 2020
  • Russia Revokes License of Top-100 Lender Finprombank
  • Credit Rating News
  • S&PGR Afrms Woori Rtg; Lifts SACP; Rates Proposed Notes ’BB+’
  • QT Mutual Bank Ratings Kept On Watch Dev: S&PGR
  • Other News
  • Bond Traders Trap Fed in No-Win Situation as Rate Call Looms
  • Basel Rule Blitz Forces Danes to Fix $420 Billion Bond Market
ANALYST VIEWS
  • Technicals arising from the ECB’s ongoing bond grab, allied with the fundamentals of a still-difficult economic environment means that we are in low/negative yield territory for a good while yet: creditmarketdaily.com
NEW ISSUES
  • Hoist Kredit EU50m 3.125% 12/2019 Tap 104.375
  • Intralot Capital EU250m 5NC2 Snr Notes 6.75%
  • Ziggo EUR 2.57b Equiv EUR/USD 10Y Sec, $625m 10Y Unsec Nts
  • 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)

Tickers
2539Z GR (European Central Bank)

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