HALISTER1: EU CREDIT DAILY: Post-NFP Sweet Spot; Glaxo, Altice, Barclays

EU CREDIT DAILY: Post-NFP Sweet Spot; Glaxo, Altice, Barclays

(Bloomberg) -- EU credit markets look set to maintain their buoyant tone this morning, with Asian equities stronger overnight and CDS indexes net tighter in the wake of Friday’s U.S. NFP data. Focus will be firmly on the pace of new issue supply, writes Bloomberg strategist Simon Ballard.
  • Brexit concerns may weigh on GBP credit risk as Japanese govt calls on U.K., EU to increase predictability of Brexit process
    • Raises specter of bank, pharma relocations out of U.K. if Brexit terms prove unfavorable
  • ECB decision on Thursday will be key economic event of the week; market looking for further commitment from central bank to address persistently low euro zone inflation
  • Risk Appetite Model sees further compression in post-NFP sweet spot
  • Bloomberg Barclays Eur-Agg Corporate index closed Friday at 108bps (unchanged); Bloomberg Barclays Eur HY index closed at 359bps (-4bps)
  • CDX IG closed -1.3bps at 76.50 in overnight session; iTraxx Asia Ex Japan IG currently -0.7bps at 111.75 and iTraxx Australia quoted -1.6bps at 97.69
NEWS
  • Corporate News
  • Glaxo Says Had Positive Results From COPD Salford Lung Study
  • Altice Offers $2.7 Billion to Buy Rest of French Carrier SFR
  • Plus500 1H Net, Rev. Up, Sees FY Margins ‘Slightly Lower’
  • Samsung Note 7 Recall Will Be Pricey, But Probably Worth It
  • Telefonica Ready to List O2 This Year If Needed, Pallete Says
  • Financial News
  • Barclays Said Close to Naming Throsby to Run Investment Bank
  • Helvetia Group 1H Profit Rises; Combined Ratio Declines
  • Credit Suisse Names Zeller Chairman of Swiss Unit Ahead of IPO
  • CaixaBank Mulls Pulling Banco BPI Bid, El Confidencial Reports
  • Bank Norwegian Contemplates Issuance of Subordinated Bonds
  • Credit Rating News
  • SoftBank’s $120 Billion Debt Nears Moody’s Downgrade Trigger
  • Brazil’s Sovereign Rating Has Probably Bottomed Out; Fitch
  • S&PGR Affirms China Mobile ’AA-’ Rating; Otlk Remains Neg
  • Fitch Affirms Hong Kong at ’AA+’; Outlook Stable
  • NZ’s Co-Operative Bank Upgraded to BBB from BBB-; Fitch
  • Other News
  • Draghi Nears His QE3 as ECB Seen Relying on Ever-More Stimulus
  • China Banks Play Capital Raising Catch-Up as Bad Loans Soar
ANALYST VIEWS
  • Corporate bond markets are meant to be boring: buy the bond, clip the coupon, get money back at maturity and buy the next one. We get performance and for now, that’s all that matters. Boring probably is good: creditmarketdaily.com
NEW ISSUES
  • Schneider Electric EU800m 8Y MS +27
  • 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.
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Source: BFW (Bloomberg First Word)

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