HALISTER1: EU CREDIT DAILY: Focus on ECB for CSPP Details; Deutsche Bank

EU CREDIT DAILY: Focus on ECB for CSPP Details; Deutsche Bank

(Bloomberg) -- Asian mkts have maintained a weak bias overnight suggesting the same for EUR credit mkts at the open this morning. Focus will likely be firmly on the ECB and anticipated release of details of CSPP, Bloomberg strategist Simon Ballard writes.
  • Details of scope/depth of CSPP should underscore corp spread tightening seen since March; failure to confirm details would disappoint and likely be punished by risk assets
    • Cash corp bonds underpinned; volatility and risk sentiment/ price gyrations mostly reserved for synthetic indexes
  • Brexit polemic set to intensify over coming 48hrs as first televised Q&A session with PM Cameron takes place this evening; may continue to pressure GBP credit spreads vs EUR/USD peers
  • Direction of Risk Appetite Model through June may hang on ECB today and details of corporate bond buying program
  • CDX IG closed little changed (+0.02bps) at 77.33 in overnight session; iTraxx Asia Ex Japan IG currently +0.8bps at 142.81
NEWS
  • Corporate News
  • Johnson Matthey FY Adj. Pretax Beats, Sees FY17 Ahead of FY16
  • Cathay Interested in Bigger Airbus A350 for Miami Non-Stop
  • EBRD Considers $150m 8-Year Loan to Turkey’s Tupras
  • Peabody Australia coal company loses nearly $3b in 2015, notes risk from parent’s bankruptcy
  • RPC Group FY Adj. Pretax Rises, New Year Has Started Well
  • Financial News
  • U.K. Banking Expansion Hits Brexit Hurdle for Handelsbanken
  • Banco Popolare Said to Eye Rights Offer Discount of About 30%
  • Deutsche Bank Sees Capital Hit as Basel Rules Add to Legal Woes
  • Credit Rating News
  • Global Funds See More Pain for Indian Banks After S&P Downgrade
  • S&P Raises Japan’s Growth Forecast on Delayed Tax Hike
  • Other News
  • European Banks Feel the Pinch From Draghi’s Negative Rates
  • Japanese Sell Overseas Debt as Fed Moves Toward Rate Increase
  • Greek Euro Exit Would Be Catastrophic, Valls Tells Kathimerini
ANALYST VIEWS
  • Weakness and/or volatility in other asset classes is increasingly having no impact on the corporate bond market in Europe. We’re not immune to event risk, but it would need to be of the “systemic” kind before we see any meaningful weakness: creditmarketdaily.com
NEW ISSUES
  • AIG EU750m 7Y MS +140
  • APRR EU700m Long 9Y MS +73
  • BP di Milano EU750m 7Y Covered MS +46
  • Council of Europe EU1b 10Y MS -10
  • Daa Finance EU400m 12Y MS +85
  • Deutsche Bank EU500m 10Y Covered MS -1
  • Deutsche Kreditbank EU500m 5Y Green Bond MS +67
  • Dexia Kommunalbank Deutschland EU500m 2021 Covered MS +6
  • EAA EU1.5b 3Y MS -7
  • Europcar EU125m 5.75% 6/2022 Notes Tap 104.5
  • PKN Orlen EU750m 7Y MS +250
  • SpareBank 1 SMN EU500m 5Y MS +85
  • SR-Boligkreditt EU750m Long 5Y Cov MS +12
  • 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)

Topics
Leveraged Finance

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