Halister News

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- Global credit mkts look set to maintain the firm tone today, with equities extending gains overnight in Asia. Notwithstanding the uptick in yday’s U.S. ISM data, the global macro backdrop will likely continue to present headwinds to risk appetite in the coming days and weeks, Bloomberg strategist Simon Ballard writes.

• China credit-rating outlook cut to negative by Moody’s; highlights magnitude of sovereign’s debt burden and questions government’s ability to implement necessary reforms
• U.S. politics squarely under the spotlight as Trump and Clinton seen as biggest winners on ‘Super Tuesday’
  • Little direct impact on broad risk-asset space thus far, but investors increasingly mindful that prospect of Trump presidency could eventually weaken U.S. risk assets as protectionist rhetoric is priced into rates and credit mkts
• Risk Appetite model continues to claw back widening seen in early weeks of 2016

• CDX IG currently -1.4bps at 101.61 in overnight session; iTraxx Asia Ex Japan IG is currently -1.3bps at 151.59

NEWS

• Corporate News
• Stagecoach Repeats FY Adj. EPS Forecast, On Track for Year
• Tata Motors Rises After Report on PV Prices; Feb. Sales Up 6%
• Holcim Philippines 2015 Net Income Rises 58.4% to 8.1b Pesos
• Automakers’ Best February Since 2000 Aided by Cheap Gas, Holiday
• Toyota Recalling ~350k Cars Worldwide to Fix Takata Air Bags
• Rolls-Royce Names ValueAct’s Singer to Board Amid Overhaul

• Financial News
• Nedbank Full-Year Profit Rises 9.4% After Retail Client Increase
• Virgin Money 2015 Underlying Pretax GBP160.3m; Final Div 3.1p
• Deutsche Pfandbriefbank Full-Year Pretax Rises 12% to EU195m
• Barclays Bank of Zimbabwe FY Profit Rises 25% to $4.8m

• Rating News
• China Rating Outlook Cut as Moody’s Warns of Debt, Reform Risks

• Other News
• Deutsche Bank Says Fed Should Move in March Based on the Data
• Trump Wins Seven Super Tuesday States as Cruz Gets Two Victories

ANALYST VIEWS

• It will be all good for a couple of weeks. Feed into it, or de-risk? Equities and just about all other risk assets are counting on it, but we believe bond markets will be the medium-term outperformers: creditmarketdaily.com

NEW ISSUES

• Deutsche Bank EU750m 8Y Covered MS +2
• NRW Bank $500m 3Y FRN 3mL +43
• State of Bremen EU150m 0.375% 2/2024 Tap at MS -2
• Danske Bank EU1b 5Y Covered MS +16
• EIB EU400m 2.75% 9/2025 Tap MS -14
• Unibail-Rodamco EU500m 10Y MS +100
• Belgium EU3.5b 30Y MS +63
• Daimler EU1B 2Y FRN 3ME +48
• Daimler EU1.5B 3.5Y MS +70, EU1B 10Y MS +105
• Kommunekredit $500m 9/2017 FRN 3mL +18
• Thyssenkrupp EU750m 5Y 2.875%

• 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.