Halister News

(Bloomberg) -- As we approach critical mass in the quarterly earnings season, mixed results thus far are creating a balancing act for credit investors. Numbers highlight relative strengths, weaknesses and macro challenges now facing the corporate and financial issuer base, Bloomberg strategist Simon Ballard writes.

• Fed offered some optimism in U.S. economic outlook overnight, but held off from raising rates again; however, corporate credit metrics likely to be closely watched in coming months for potential impact of higher U.S. yield structure across the corporate quality curve
  • No change in BOJ stimulus despite deflationary pressures and earlier dovish comments; likely to disappoint credit markets at open this morning
• Key European data today include euro-area economic confidence, German inflation
• Risk Appetite Model shows small consolidation moves, but firm tone remains overall
• CDX IG closed -0.8bps at 73.82 in overnight session; iTraxx Asia Ex Japan IG is currently -0.7bps at 139.68

NEWS

• Corporate News
• Electrolux Profit Beats Estimates Amid ‘Healthy’ U.S. Growth
• Fortum 1Q Sales Below Estimate, Sees Nordic Demand Growing 0.5%
• Sony Reports Quarterly Loss, Holds Forecast to Assess Earthquake
• Seiko Epson FY15 Net Income Below Forecast, Falls Y/y
• Anglo American to Sell Niobium, Phosphate Units for $1.5 Billion
• NTT Docomo Forecasts Profits Above Expectations, Plans Buyback

• Financial News
• Deutsche Bank Posts Surprise Profit as Cryan Cuts Expenses
• Daiwa Securities Quarterly Profit Declines 45% on Trading Slump
• Lloyds 1Q Underlying Pretax Profit Beats, CET1 Ratio Rises
• EFG to Buy UBI Banca International’s Private Banking Business
• BBVA Quarterly Profit Drops, Misses Estimates on Lower Trading
• Bank of Ireland Says Continues to Trade as Expected

• Credit Rating News
• S&P Affirms ’BB’ Ratings On Banco Votorantim, Watch Neg

• Other News
• Fed Waits for Economy’s Green Light to Hike as Risks Abate
• BOJ Holds Off More Stimulus to Gauge Impact of Negative Rate

ANALYST VIEWS

• Fear of the unknown can make for a herd-like mentality to investing. With the ECB due to start lifting credit markets, we are positioning ahead of the event and prepared to buy the richest of corporate bond debt in order to get some performance in: creditmarketdaily.com

NEW ISSUES

• City of Mainz EU125m 9/2023 FRN 3mE +35
• EIB GBP500m 1.5% 2/2019 Tap UKT +43
• London & Quadrant Housing GBP300m 10Y UKT +107
• Oma Savings Bank EU110m 3Y FRN 6mE +100
• RAC GBP300m 7Y, GBP600m 10Y Senior Secured Notes
• UBI Banca EU750m 10NC5 Tier 2 Notes 4.25%
• UNEDIC EU500m 10/2022, EU750m 10/2027 Taps
• 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.