Halister News

(Bloomberg) -- After the sharp spread tightening and quality curve flattening seen Thursday, we may expect some renewed consolidation today as we head towards the weekend. But even if spreads retreat slightly there’s likely to be little in the way of capitulation threat, Bloomberg strategist Simon Ballard writes.

• Demand/supply dynamics remain robust, with credit set to retain its title of asset class of choice for incremental yield and returns; primary mkt remains key source of liquidity
  • Fed/ECB/BOE accommodative monetary policy backdrop should continue to create supportive environment for spread product
• Macro data points today include French 2Q GDP, Eurozone Sept. PMI
• Risk Appetite Model registers small pick up in volatility as spread dispersion eases in rally
• Bloomberg Barclays Eur-Agg Corporate index closed yday at 112bps (flat); Bloomberg Barclays Eur HY index closed at 407bps (-4bps)
• CDX IG closed -1.3bps at 73.88 in overnight session; iTraxx Asia Ex Japan IG currently +0.8bps at 112.40 and iTraxx Australia quoted -0.6bps at 102.43

NEWS

• Corporate News
• Telenor to Recognize NOK3b Total Loss from VimpelCom Sale For 3Q
• CVS Group FY Adjusted EPS Rises 31%; Outlook ‘Promising’
• France’s CDC Sells Portion of Stake in Veolia For EU456 Million
• Chubu Electric Registers to Sell Up to 500b Yen of Bonds
• Anglo American Appoints Stephen Pearce as Finance Director

• Financial News
• CaixaBank Sells Shares for $1.5 Billion to Fund BPI Deal
• Bank With No CEO and 20% Bad Loans Shows Challenge for Modi
• Commerzbank to Cut Business Units From 4 to 3: Boersen Zeitung
• Goldman Stays on Top for Commodities Amid Diminishing Revenues

• Credit Rating News
• Alcoa of Australia Cut to Baa3 from Baa2 at Moody’s
• U.S. AAA Rating Supported by Economic Strength, Moody’s Says

• Other News
• Bond Bulls Curb Their Enthusiasm in China’s Leverage Crackdown
• Economy’s Headwinds Look More Like Anchor in Latest Fed Outlook

ANALYST VIEWS

• € credit’s value proposition remains of most importance for ‘traditional’ investors when committing fresh money... beyond the short term positive that for CSPP ‘buying candidates’ any widening pressure should remain moderate, we think at current spread levels in particular IG seniors do not look overly appealing: Commerz
• It’s been a poor week (for non-financial corporate issuance) with just €1.5bn printed. At this rate we’ll be lucky if €30bn gets done by the time the month is out. (But) the pipeline, we know, is very good and issuers have been on the road of late: creditmarketdaily.com

NEW ISSUES

• B2Holding EU175m 5NC2 FRN 3mE +700
• Alandsbanken EU250m 7Y Covered Bond MS +6
• ANZ Banking Group EU1b 10Y MS +50
• BPCE Total EU1.75b 7Y, 12Y Bonds
• FMS Wertmanagement $750m 3Y FRN 3mL +10
• National Bank of Canada EU750m 7Y Covered MS +2
• NIBC Bank EU200m 9/2019 Tap MS +127
• City of Cordoba $150m 8Y Reg S 7.875%
• 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.