Halister News

(Bloomberg) -- Aggregate global credit market volumes may remain muted ahead of Friday’s U.S. jobs report and Labor Day holiday on Monday, but the start of a new month should spur net better buying interest in European risk assets, Bloomberg strategist Simon Ballard writes.

• Asian credit markets mixed overnight though sentiment buoyed by a bigger-than-expected rise in China’s official manufacturing PMI, which hit the highest level since 2014
• EUR, GBP and USD credit markets remain well-supported by macro backdrop and central banks’ asset-purchase programs
  • ECB and BOE QE should continue to offer backstop bids to EUR and GBP credit universes respectively through September
• We have updated our Risk Appetite Model, which highlights firm tone to credit markets as volatility trades at ytd low

• CDX IG closed +1.2bps at 76.30 in overnight session; iTraxx Asia Ex Japan IG currently +0.1bps at 113.07 and iTraxx Australia quoted +0.5bps at 100.06

NEWS

• Corporate News
• Pernod Ricard Forecasts Profit Growth as U.S., Spain Drive Sales
• Hays 1H Pretax in Line, Says U.K. ‘Sequentially Stable’
• Safestore Sees FY Earnings to Be Slightly Ahead of Expectations
• Veolia Environnement to Be First French Co. to Issue Panda Bond
• Mazda Recalls 130,000 Japan Vehicles Over Diesel Engine Flaw

• Financial News
• Macquarie Group Set to Cut Staff in BFS Unit, AFR Says
• China Banks End-June Wealth Mgmt Product Outstanding 26.28t Yuan
• Julius Baer Names Bhaskar Laxminarayan as Asia CIO
• Bremer Landesbank 1H 2016 Earnings Figures: Link

• Credit Rating News
• Fitch Affirms Hysan Development Company at ’BBB+’/Stable

• Other News
• Gross Calls for Two Fed Hikes at Double the Pace Seen by Market
• ECB Bonus Helps Finland Discover Sweet Spot in Negative Yields
• HSBC Sees $13 Billion of RBI Buying Boosting Best Asia Bonds

ANALYST VIEWS

• One should assume performance in coming months will be assured, and position for it. That means taking on higher beta risk -- or staying with it -- and looking for flattening trades: creditmarketdaily.com

NEW ISSUES

• Allianz $1.5b PNC5.5 Tier 2 3.875%
• Cofiroute EU650m Long 8Y MS +25, EU650m 12Y MS +35
• Delphi Automotive EU500m 12Y MS +120
• Finland EU3b 7Y MS -23
• GM Financial Co. EU750m 7Y MS +95
• Islandsbanki EU500m 4Y MS +200
• Nordea Bank EU1b 10NC5 Tier 2 MS +125
• NRW Bank $250m 3/2019 FRN Tap 3mL +20
• Slovenia EU1b 1.5% 3/2035 Tap MS +98
• Bureau Veritas EU500m 7Y MS +135, EU200m 10Y MS +180
• 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.