HALISTER1: EU CREDIT DAILY: Geopolitics; C. Suisse Cuts, Kingfisher Beats

EU CREDIT DAILY: Geopolitics; C. Suisse Cuts, Kingfisher Beats

(Bloomberg) -- Geopolitical risk back as key contributor to risk-asset price performance in the past 24 hours, in the wake of the tragic events in Brussels. Synthetic indexes seeing most of credit-mkt gyrations though, as the prospect of ECB corporate-debt buying by end of 2Q continues to underpin cash bond valuations, Bloomberg strategist Simon Ballard writes.
  • No capitulation from investors following Brussels attacks, but clear cautious bias; wider spreads over coming week(s) may even be seen as attractive selective entry point by investors
    • Challenging macro conditions and political uncertainty in Europe, U.K. and U.S. likely to be balanced against medium-term implicit ECB technical support for corporate risk
  • Mkt volumes likely muted today, primary flow lackluster, as we approach Easter holiday weekend
  • Brussels attacks trigger further modest rise in volatility for Risk Appetite Model
  • CDX IG currently +1.2bps at 80.83 in overnight session; iTraxx Asia Ex Japan IG is currently -1.4bps at 149.39
NEWS
  • Corporate News
  • Kingfisher FY Adj. Pretax Beats Ests., Cautious on France
  • Hermes Full-Year Earnings Beat Estimates on Leather Goods, Japan
  • Sports Direct Sees FY Profit Near Bottom End of Forecasts
  • Chubu Targets More Than 150b Yen of Ordinary Profit by FY2018
  • Europe Feb. Commercial Vehicle Registrations
  • EDF Started U.K. Reactor Hinkley B-7 at 9pm GMT Tuesday
  • Financial News
  • Credit Suisse to Cut More Jobs, Speed Up Trading Reductions
  • Mitsui Forecasts 70b Yen FY Net Loss, Cites Impairment Charges
  • Greek Bank Deposits Fell by ~EU1b to EU121b in Feb
  • Swedbank Investor AMF Says Management Departures Hurt Brand
  • Credit Rating News
  • Fresnillo Ratings Confirmed by Moody’s, Outlook Stable
  • Other News
  • Yellen Will Meet 2% Inflation Goal, Judging by Treasury Yields
  • Pimco Sees China Debt in Global Gauges by 2018 - With Caveat
  • China Inc. ‘Bleeding’ From Yuan Devaluation Seeks Hedging Help
  • Clinton, Trump Win Arizona Primaries, Cruz Takes Utah Caucuses
  • ‘Brexit’ Fretting at Bank of England May Be About to Intensify
  • Billions From Heaven? ‘Helicopter Money’ Option Wins Fans
ANALYST VIEWS
  • Markets were looking to crawl back into their shell pre- Easter anyway, and (after the Belgian atrocities) looks like it is business over this side of the Easter holiday: creditmarketdaily.com
NEW ISSUES
  • F. Van Lanschot EU500m 7Y CPT Covered MS +18
  • ESM EU1b 1.625% 11/2036 Tap MS +13
  • UNEDIC EU1.75b 11/2023 FRTR +17
  • 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.
  • NOTE: This is the last edition of EU CREDIT DAILY until after Easter. Publication will resume April 11.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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