HALISTER1: EU CREDIT DAILY: Post ECB Consolidation; Sainsbury, SocGen, NBG

EU CREDIT DAILY: Post ECB Consolidation; Sainsbury, SocGen, NBG

(Bloomberg) -- After the magnitude of the positive reaction to the ECB at the end of last week, cash corp bonds continue to perform, but synthetic indexes consolidated a little on Monday, Bloomberg strategist Simon Ballard writes.
  • All eyes remain on the global macro and monetary policy outlook; with the BOJ keeping rates unchanged overnight, BOE, U.K. budget, SNB and FOMC among this week’s other key data points
  • Gyrations in the oil price will also tend to drive sentiment across the risk asset space, particularly in more liquid equity and credit derivative indexes
    • Cash bonds well underpinned, although mkt still awaiting precise rules & details of ECB proposed corp bond buying initiative
  • Risk Appetite Model highlights recent spread performance has come at cost of higher volatility
  • CDX IG currently -0.2bps at 85.09 in overnight session; iTraxx Asia Ex Japan IG is currently -0.5bps at 136.04
NEWS
  • Corporate News
  • JD.Com Gains on Alibaba as Spending Jumps, Profit Estimates Drop
  • Kobe Steel Aims to Return to Profit at Excavator Unit
  • Ocado 1Q Retail Gross Sales Beat Ests.
  • H&M Sales Miss Estimates in February, 1Q
  • Balfour Beatty Says Order Book, Revenues Stabilising
  • Sainsbury Posts First Quarterly Sales Increase in Two Years
  • Vivendi May Ask for Telecom Italia Board Renewal in May: Sole
  • Financial News
  • Societe Generale to Buy Kleinwort Benson from Oddo Group
  • Sberbank 4Q Net Income 72.6B Rubles; Est. 68.2B Rubles
  • Natixis Says Reorganized CIB to Be Managed by Riahi, Vincent
  • Standard Bank Economist Hart Quits After Twitter Suspension
  • National Bank of Greece 2015 Net Loss EU2.62b Vs EU255m Loss
  • Nomura Erases Losses After BOJ Keeps Policy Unchanged
  • Rating News
  • Australia’s Stable AAA Sov Credit Rating Affirmed by Fitch
  • Fortescue Credit Rating Cut by Moody’s After Iron Ore Slump
  • Other News
  • Bank Debt Getting Uglier for This $9 Billion Nordic Fund Manager
  • U.K. Has Nothing to Gain From Brexit: European Commissioner Hill
  • Copper Leads Industrial Metals Declines Amid Rising China Stocks
ANALYST VIEWS
  • 1Q is going to be good, and we expect issuance, tighter spreads and investors scurrying around to get risk on board will all sustain a feel-good factor and a positive tone through the second quarter: creditmarketdaily.com
NEW ISSUES
  • BP Capital Markets $500m 5Y MS +175
  • Femsa EU1b 7Y MS +155
  • Fluor EU500m 7Y MS +150
  • Helaba EU1b 11/2022 Covered MS -3
  • Rabobank EU2b 10Y MS +68
  • UBS Group $1.5b PNC5 AT1 Notes 6.875%
  • Yorkshire Water Services GBP200m 30NC7 UKT +240
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)
ETE GA (National Bank of Greece SA)
GLE FP (Societe Generale SA)

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