Halister News

(Bloomberg) -- Risk assets may feel the impact of yesterday’s upward shift in the U.S. yield curve after minutes of the April FOMC meeting had the hawkish tone the market had been wary of, writes Bloomberg strategist Simon Ballard.

• While changes in Fed rate policy generally have a global reach, the EUR credit-market direction is currently set as much by its own drivers
  • Uncertainty surrounding the U.K. referendum on EU is undermining investor risk appetite, while the prospect of ECB’s corporate-sector purchase program offers structural support
• Airline/travel sector may be under pressure this morning as EgyptAir flight from Paris to Cairo disappears from radar
• Greece back under the microscope; contingency fiscal- mechanism bill submitted to parliament as Eurozone weighs debt relief in bid to keep IMF in program
• Risk Appetite model registers decline in vol and increase in spread dispersion, fueled by market uncertainty

• CDX IG closed +1.2bps at 83.82 in overnight session; iTraxx Asia Ex Japan IG currently +2.5bps at 145.21

NEWS

• Corporate News
• Merck KGaA Profit Beats Estimates on Sigma-Aldrich Deal
• Henkel 1Q Adj. Operating Profit Beats Est.; Confirms ‘16 Outlook
• Britvic 1H Ebita In Line With Estimates, Confirms Forecast
• Mothercare FY Underlying Pretax in Line, International Tough
• Royal Mail FY Adj EPS, Revenue Beat Estimates
• National Grid Plc Full year results 2015/16
• Spire Healthcare Says FY16 Forecast in Line With Expectations

• Financial News
• Indian State Banks Post $2.3 Billion in Losses on Bad Loans
• Bank Leumi 1st-Quarter Net Drops On One-Time Profits, Corp. Tax
• Ageas 1Q Insurance Profit Beats Ests. on Gains in Life Business
• Julius Baer End-April AUM Rise 2% to CHF305b, FX Impact Negative
• Hargreaves Lansdown Says 4-Month Net Inflows GBP2.3b

• Credit Rating News
• Hungary’s Barcza ‘Not Optimistic’ on Fitch Upgrade Now: Hirlap
• Fitch: China Cement Volumes Do Not Translate Into Price Recovery

• Other News
• Moody’s Cuts 2016 U.S. Growth Forecast, Cites Weak Global Demand
• EgyptAir’s Paris-to-Cairo Flight Vanishes With 66 on Board
• Fed Puts June Rate Increase on Table Provided Economy Says Go

ANALYST VIEWS

• Primary will dominate today - and it promises to be a heavy session again, but the machinations around US interest rate risk will have the non-corporate bond market investors’ attention: creditmarketdaily.com
• Ways that investors can effectively position for the (U.K. EU referendum) vote in FX, Fixed Income and Equities: Credit Suisse

NEW ISSUES

• LBBW $650M 3Y Covered MS +51
• EDC GBP350M 12/2020 UKT +42
• SEB EU1B 4Y FRN 3ME +47
• Aegon Bank EU500M 7Y Covered MS +14
• Ceske Drahy EU400M 7Y MS +180
• Islandbanki HF EU75M 2.875% 7/2018 TAP MS +247
• BNP Paribas EU1B 12Y MS +78
• Eurofima EU100M 0.25% 4/2023 TAP MS +2~
• Caja Rural De Castilla-LM EU500M 8Y Covered MS +53
• 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.