Halister News

(Bloomberg) -- Risk-asset pricing appears underpinned by optimism the U.K. will vote to stay in the EU, even amid mixed opinion polls and as potential for volatile market conditions around Thursday’s referendum remain elevated, Bloomberg strategist Simon Ballard writes.

• Credit market trading volumes have shrunk ahead of the referendum; broad uncertainty keeping investors sidelined and the primary market is all but closed for the time being
  • Market trading volume likely to be muted again today; Asia (ex-Japan) risk firm overnight, but tone remains fragile with corp spreads susceptible to macro and micro headline event risk
  • To follow our referendum night live blog, click here.
• Macro radar today also includes euro zone June consumer confidence; consensus -7.0 unchanged from May

• Risk Appetite Model shows key theme of rising vol and anchored spreads in countdown to EU referendum
• CDX IG closed -1.1bps at 78.49 in overnight session; iTraxx Asia Ex Japan IG currently -0.3bps at 141.41

NEWS

• Corporate News
• Mitsubishi Motors Forecasts 145b Yen FY Net Loss on Fuel Tests
• H&M Earnings Decline on Weakest Sales Growth in Three Years
• Debenhams 3Q LFL Sales Down 0.2%, Expects to Meet Mkt Forecasts
• Tesla Takeover of SolarCity Not a ‘No-Brainer’ for Investors
• Nissan CFO Sees Synergies From Mitsubishi Motors’ Stake Purchase
• Bangchak Petroleum Sees 2016 Net Income Exceeding Last Year
• Wesfarmers Sees Coal Impairment Charge at Upper End of Forecast

• Financial News
• Deutsche Sued for HK$135m by Former Asia Corporate Finance Head
• Nordea Bank Damage Control Has CEO Revealing Surprising Results
• Danish Bank Groups Urge Basel to Reconsider Capital Floors
• Australian Banks Show Mettle as Bond Risk Falls Amid Stock Slump
• Powerful Storm Set to Hit Asian Bank Profits, McKinsey Says
• Abu Dhabi’s Megabank Deal Poised to Shatter Mideast M&A Records

• Credit Rating News
• SoftBank Upgraded by Debt Market as S&P Holds Out for More
• S&PGR Affirms, Then Withdraws Rtgs on APN News & Media

• Other News
• London’s Markets Are Bracing for Brexit-Fueled Trading Bonanza
• With or Without Brexit, Singapore Seen as Bond Haven With Korea

ANALYST VIEWS

• It would appear shorts have been covered, the apprehensions alleviated and, should “Remain” now succeed in the referendum campaign, then Friday’s reaction will possibly not be as great: creditmarketdaily.com

NEW ISSUES

• No Syndicated New Issues Tuesday
• 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.