HALISTER1: EU CREDIT DAILY: FOMC Minutes Eyed; SABMiller Misses, Dexia Loss

EU CREDIT DAILY: FOMC Minutes Eyed; SABMiller Misses, Dexia Loss

(Bloomberg) -- Asian credit markets lower overnight as U.S. rates outlook continues to cloud risk-asset sentiment; EUR corporate-bond space seems set to be pinned in consolidation mode with a cautious bias again today, Bloomberg strategist Simon Ballard writes.
  • Demand/supply dynamics ahead of the ECB CSPP remain robust with cash spreads seemingly underpinned, although price gyrations in the more liquid iTraxx indexes continue to highlight susceptibility to macro and event risk headlines
    • Brexit uncertainty appears to be damping GBP credit; GBP HY has consistently underperformed EUR HY since mid- February as referendum polemic intensified and prospect of ECB bond-buying added fillip to the euro credit mkt
  • In wake of firm U.S. April CPI, industrial production and home building, focus today will likely be on FOMC April minutes as market weighs June Fed-hike risk
  • Risk Appetite model shows modest consolidation in vol and spread dispersion over past month; still in ‘risk on’ territory
  • CDX IG closed +0.6bps at 82.42 in overnight session; iTraxx Asia Ex Japan IG currently -0.3bps at 142.91
NEWS
  • Corporate News
  • SABMiller FY Pretax Profit Misses Estimate
  • GlaxoSmithKline Consumer Falls After Profit Misses Estimates
  • Burberry Says Has 3-Year Plan to Deliver GBP100m Savings a Year
  • Sonova FY Ebita Misses Ests., Div. In Line With BDVD Forecast
  • Marston’s 1H Pretax Rises 11.8%, Says FY Plans On Track
  • Atrium 1Q Pretax Profit More Than Doubles to EU26.5m vs EU11.1m
  • Financial News
  • Delta Lloyd 1Q Solvency 2 Ratio Drops; GI Premiums Written Rise
  • Dexia Posts EU55m Loss; CET1 Ratio Drops to 14.6% on AFS Reserve
  • Credit Suisse Targets Rich Thais to Help Reach Wealth Goal
  • Goldman Said to Consider Aussie Asset Management Unit Sale
  • Credit Rating News
  • S&PGR Rates Deutsche Securities ’BBB+/A-2’; Outlook Stable
  • S&PGR: Rated Chinese SOEs’ Liquidity Should Stay Adequate
  • Other News
  • Deutsche Bank Faces Fresh Investor Ire a Year After Shakeup
  • As Brexit, Trump Multiply Global Risks, Gold Seen at $1,400
  • Fifty Years of History Is Worth Braving for European Bond Buyers
ANALYST VIEWS
  • Equities look like they have had their day - for the moment. That is good for corporate bonds... offering an incremental “safe” income, while yielding more than govies/bank deposits: creditmarketdaily.com
  • April FOMC Minutes May Jolt Mkts to Price in Fed Hike: Citigroup
NEW ISSUES
  • Argenta Spaarbank EU500m 10NC5 Tier 2 MS +395
  • Barry Callebaut Services EU450m 8Y 2.50%
  • BNG GBP250m 5Y UKT +45
  • Caruna Networks EU500m 7Y MS +130
  • Citigroup EU1b 5Y FRN 3mE +83
  • Leaseplan Corp EU750m 5Y MS +107
  • Nasdaq EU600m 7Y MS +162
  • PACCAR Financial Europe EU300m 3Y MS +30
  • SocGen EU1b 7Y MS +65
  • Zurich Insurance EU750m 30.4NC10.4 Subord MS +295
  • Afreximbank $750m 5Y Reg S MS +300
  • 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
DEXB BB (Dexia SA)
SAB LN (SABMiller PLC)

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