HALISTER1: EU CREDIT DAILY: ECB Holds Key; VW, Abengoa, Aviva, HSBC, ANZ

EU CREDIT DAILY: ECB Holds Key; VW, Abengoa, Aviva, HSBC, ANZ

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- One might expect a fairly muted European session in credit mkts this morning ahead of ECB later, with a seemingly high potential for investor disappointment with the result, Bloomberg strategist Simon Ballard writes.
  • Credit mkts are looking for ECB to deliver at least a 10bps deposit-rate cut and an additional EU10bn of monthly asset purchases
    • But risk assets may struggle to produce meaningful positive reaction to anything less than the aspirational 20bps cut and EU20bn QE increase that many investors are hoping to see
  • After recent tightening in spreads, ECB may now hold key to near-term direction of Risk Appetite model
  • CDX IG currently +0.1bps at 96.23 in overnight session; iTraxx Asia Ex Japan IG is currently -1.1bps at 147.14
NEWS
  • Corporate News
  • Linde Sees Challenging 2016 as Quarterly Profit Drops on Oil
  • Carrefour Profit Meets Estimates as European Stores Revive
  • Morrison Sees GBP50m-GBP100m Incremental Underlying Pretax
  • Agfa-Gevaert Forecasts Higher Rev. for 2016; EU3b in Medium- Term
  • Volkswagen U.S. CEO Leaves Suddenly Following Diesel Scandal
  • Abengoa Sees Up to EU1.8B in ‘New Money’ in Restructuring Accord
  • Financial News
  • Hannover Re 4Q Profit Rises 26%; Plans to Pay Special Dividend
  • Aviva FY IFRS Profit Dips, Op Profit, NAV Rise
  • Deutsche Bank, HSBC Fight Fed’s ‘Unfair’ Too-Big-to-Fail Plans
  • SMBC Nikko Hires Growney to Sell U.S. Debt as Business Expands
  • Sanlam Full-Year Profit Little Changed as Life Insurance Slumps
  • Rating News
  • No Sale Time Like Present for S.A. on Cusp of Downgrade
  • Moody’s Says ASIC Case Against ANZ Bank Is Credit Negative
  • Other News
  • Draghi Marks a Year of QE With Suspense of ‘No Limits’ Stimulus
  • China Inflation Fastest Since Mid-2014 as Food Prices Jump
  • ‘Brexit’ and Taxes Play Tug of War on British Housing Market
ANALYST VIEWS
  • That the corporate bond market would maintain a positive total return through the year so far despite spreads being wider by 35bp at one stage...highlights the inherent stability and attractiveness of the IG bond market: creditmarketdaily.com
NEW ISSUES
  • Ferrari (not rated) EU500m 7Y at MS +140
  • Pemex EU1.35b 3Y at MS +395; EU900m 7Y at MS +495
  • Berkshire Hathaway EU1b 4Y at MS +60; EU1b 8Y at MS +95, EU750m 12Y at MS +140
  • City of Dortmund EU120m 6Y FRN 3mE +39
  • FMS GBP150m 1% 4/2018 Tap UKT +52
  • EIB GBP300m 5/2021 FRN Tap 3mL +40
  • Land NRW EU1.585b 7Y Green Bond MS -2
  • RCI Banque EU500m 3Y FRN 3mE +100
  • Affordable Housing GBP194m 2.893% 8/2043 Tap UKT +43
  • 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)

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