HALISTER1: EU CREDIT DAILY: FOMC Shadow Looms; VW Agreement, HSBC Closures

EU CREDIT DAILY: FOMC Shadow Looms; VW Agreement, HSBC Closures

(Bloomberg) -- Spreads may open better bid with Asia risk stronger overnight, but aftermath of FOMC minutes and concerns of a more hawkish macro environment are weighing on sentiment as we head toward the weekend, Bloomberg strategist Simon Ballard writes.
  • Geopolitical and corporate events also denting risk appetite; airline and travel sectors under pressure as search for missing EgyptAir plane enters second day
    • If terrorist act confirmed, could further undermine near-term risk sentiment
  • G-7 meeting today in Japan likely to discuss Brexit as key concern; may offer headline risk to credit-market sentiment
  • Risk Appetite model highlights balance between Fed rate concerns and EUR regional risk dynamics
  • CDX IG closed -0.4bps at 85.06 in overnight session; iTraxx Asia Ex Japan IG currently -0.6bps at 145.21
NEWS
  • Corporate News
  • Volkswagen Reaches Inhouse Wage Agreement With Union IG Metall
  • Applied Materials Sales Forecast Beats as Chipmakers Upgrade
  • John Menzies Trading in Line With Forecast; New Pension Advisor
  • Richemont FY Rev. In Line With Ests., Oper. Profit Misses
  • CFE 1Q Rev. Misses Ests.; Order Backlog Falls to EU3.97 Bln
  • Tokio Marine Forecasts Profit Below Consensus, Raises Dividend
  • Ladbrokes, Coral Must Sell 400 Shops to Merge, U.K.’s CMA Says
  • Financial News
  • Negative Rates Scorned by Japan’s Megabanks as Charts Turn Ugly
  • Resona to Partner With BNP Paribas Unit in First U.S. Foray
  • VEB Will Need 360b Rubles Recapitalisation in 2017: Kommersant
  • HSBC to Close Half of India Branches in Digital Banking Push
  • Deutsche Bank Said to Be Probing Some Employee Trades
  • Credit Rating News
  • Moody’s Says Australia’s Fiscal Objective Will Be Challenging
  • Bolivia’s Sovereign Ratings Affirmed by S&P With Stable Outlook
  • Other News
  • Defaults Throw Wrench in China’s $3 Trillion Company Bond Engine
  • Market Impact of Brexit Is Key Concern for G-7 Finance Chiefs
  • Not Much Worries Bond Traders as Term Premium Falls to 1962 Lows
ANALYST VIEWS
  • We would expect nothing in the market today as we reflect on the potential for a (U.S.) rate hike and investors absorb that possibility as well as the plethora of deals issued this week: creditmarketdaily.com
NEW ISSUES
  • Eastman Chemical EU550m 7Y MS +135
  • Greene King Finance GBP300m 19Y UKT +265
  • Hanesbrands EU500m 8NCL Senior Notes at 3.5%
  • Holcim Finance Total EU2b 7Y, 12Y Bonds
  • JAB Holdings EU750m 7Y MS +155
  • KfW GBP300m 1.125% 12/2019 Tap UKT +38
  • Nexans EU250m 5NCL Senior Notes 3.25%
  • NWB Bank EU500m 20Y MS +20
  • State of Saarland EU250m 10Y MS -3
  • Sanoma Corporation EU200m 3.5Y 3.5%
  • Stockholm Council SEK1.5b 9/2021 Green Bonds MS +47
  • Svenska Cellulosa EU500m 5Y MS +55
  • Vivendi EU1b 5Y MS +85, EU500m 10Y MS +135
  • Willis Towers Watson EU540m 6Y MS +203
  • 4finance EU100m 5Y Notes to Yield 11.25%
  • Romania EUR1B 12YR Bonds MS+225BPS
  • 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
HSBA LN (HSBC Holdings PLC)

Topics
Leveraged Finance

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