HALISTER1: EU CREDIT DAILY: Consolidation; Rosneft Falls, Allianz Rises

EU CREDIT DAILY: Consolidation; Rosneft Falls, Allianz Rises

(Bloomberg) -- Trump stimulus hopes continue to offer degree of support to credit market sentiment, but risk appetite may see some consolidation Friday after a volatile week amid continued selloff in government bonds, Bloomberg strategist Simon Ballard writes.
  • Bond rout may be weakening yield advantage of EM space, but not yet having meaningful negative impact on IG/HY returns profile; may eventually favor shorter duration HY index vs IG
    • EUR HY index total return -0.37% mtd (+7.68% ytd); EUR IG index -0.55% mtd (4.66% ytd)
  • Market volumes likely muted Friday, with U.S. Treasuries market closed for Armistice/Veterans’ Day
  • Bloomberg Barclays Eur-Agg Corporate index closed Thursday at 112bps (-1bps); Bloomberg Barclays Eur HY index closed at 387bps (-8bps)
  • CDX IG closed Thursday -0.86bps at 74.78; iTraxx Asia Ex Japan IG is currently +1.0bps at 119.90 and iTraxx Australia quoted +5.7bps at 109.17
NEWS
  • Corporate News
  • Rosneft Third-Quarter Profit Falls Even as Oil Output Grows
  • Codere 3Q Ebitda EU61.6m Vs EU67.8m Year Earlier
  • Aegean Airlines 9-Month Net Income EU51.2m From EU81.9m Yr- Ago
  • Financial News
  • Allianz Profit Rises 36%; Pimco Has First Inflows Since 2013
  • Samsung Life 3Q Net 485.7b Won; Est. 459.1b Won
  • State Bank of India Profit Matches Ests.; Bad Loan Ratio Widens
  • UnipolSai 9-Mo. Net Income Attributable EU409m; COR 96%
  • UBI 3Q Net Income Beats Estimate; Fully-Loaded CET1 11.28%
  • Jyske Bank Says Retail Clients May See Negative Rates in 2017
  • Resona Holdings 1H Net Income Up 13% Y/y; Beats Estimate
  • UniCredit Gets Four Bids for Asset Manager Pioneer: Messaggero
  • Rating News
  • S&PGR Raises USG Corp. Ratings To ’BB+’; Outlook Stable
  • S&PGR Raises BlueScope Steel Ratings To ’BB+’; Outlook Stable
  • Fitch Rates Adani Ports’ Proposed USD Notes ’BBB-(EXP)’
  • Other News
  • Wall Street Bonus Rules Seen as Urgent Ahead of Trump Takeover
  • Carry Trades Collapse as Emerging-Market Yield Advantage Shrinks
ANALYST VIEWS
  • Eurozone is stuck in a rut and higher yields are going to be extremely unhelpful...Current fear (of) higher yields might materialise as being the U.S.’s bond dynamic while Eurozone government bond markets find a new level away from zero: creditmarketdaily.com
NEW ISSUES
  • Bunge EU200m 1.85% 6/2023 Tap MS +110
  • Gazprom EU1b 7Y 3.125%
  • KfW GBP250m 1.625% 6/2020 Green Bond Tap UKT +30
  • Nederlandse Gasunie EU300m 3Y MS +5.9, 0% Yield
  • NRW Bank EU500m 10Y Green Bond MS -17
  • Sampo EU750m 9/2023 MS +68
  • 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
ROSN RM (Rosneft PJSC)

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