HALISTER1: EU CREDIT DAILY: Rates Pressure; Remy Beats, Thyssenkrupp Stable

EU CREDIT DAILY: Rates Pressure; Remy Beats, Thyssenkrupp Stable

(Bloomberg) -- Happy Thanksgiving! Rates market selloff, putting renewed pressure on corporate bond valuations, will likely feature in upcoming discussions about 2017 asset allocations. Current rising yields likely to limit near-term credit spread tightening potential; sideways movement may be the best investors can now hope for, Bloomberg strategist Simon Ballard writes.
  • Rates volatility has persisted in Asia overnight with synthetic credit indexes weaker again; suggests net wider bias persisting in EUR credit market
    • Rates weakness has erased 199bps off IG credit ytd total return since Oct 1; from 6.00% (Oct 1) to 4.01% as of close yesterday
  • Credit market volume expected to be modest Thursday with U.S. market closed; macro focus on German Nov Ifo business confidence, German and Spanish final 3Q GDP
  • Bloomberg Barclays Eur-Agg Corporate index closed Wednesday at 124bps (flat); Bloomberg Barclays Eur HY index closed at 423bps (-2bps)
  • CDX IG closed Wednesday -0.5bps at 74.22; iTraxx Asia Ex Japan IG is currently +0.6bps at 126.91 and iTraxx Australia quoted +1.0bps at 110.08
NEWS
  • Corporate News
  • Severn Trent 1H Turnover, Profit Up; Sees Lower Interest Charge
  • Thyssenkrupp to Keep Dividend Stable as Profit Matches Estimates
  • Melisron 3Q Profit Rises 16% as Rental Income Increases
  • CVS Group Says Underlying Profitability Ahead of Expectations
  • Pets at Home Says FY Profit Outlook In Line With Market Ests.
  • Euromoney FY Rev. Beats Ests.; Sees Return to Growth in 2018
  • Countrywide Sees FY Ebitda Around Lower End of Market Estimates
  • Marston’s FY Underlying Pretax In Line, Encouraging Start to FY
  • Mothercare 1H Adj. Pretax Falls, 2H to Date In Line With Plans
  • Pierre & Vacances FY Net Loss Narrows, Helped by Tourism Unit
  • Remy Cointreau 1H Current Operating Profit Beats Estimates
  • Gatwick Airport 6-MO Rev Up 8.1% to GBP445.2m
  • Financial News
  • Maybank Slashes Loan Growth, Return Targets After Earnings Drop
  • PayPoint 1H Revenue Drops 1.1%, Says Trading In Line
  • Commercial Bank of Africa 9-Month Net KES3.91b vs KES2.56b
  • Sabadell’s TSB in Talks to Acquire U.K. Mortgages: Expansion
  • Rating News
  • Moody’s Raises Transpower NZ Ratings Outlook to Positive
  • S&PGR Affirms Rtgs On Six Thai Banks; Otlks Stable
  • Transurban Rtgs Unaffected By Logan Project: S&PGR
  • Fitch: Australia Regional Banks’ Risk Appetite to Sway Ratings
  • Fitch: China Power Companies Face Further Margin Erosion in 2017
  • Other News
  • Cautious Fed Sees Labor Market Strong Enough for December Hike
  • S&P Says Negative Momentum in Credit Quality Likely to Continue
  • Deutsche Asset Management Positive on Asian Credit
ANALYST VIEWS
  • It is the rising yields environment which is preoccupying corporate bond investors. We’re not piling in on the back of the better valuations, despite the demand for primary risk: creditmarketdaily.com
NEW ISSUES
  • 4finance EU50m 11.25% 5/2021 Tap at 100
  • ABN Amro Bank GBP300m 2Y FRN 3mL +50
  • Adecco EU500m 8Y MS +65
  • ASML EU750m 5/2027 MS +95
  • CAFFIL EU500m 15Y Covered MS +17
  • China Eximbank EU1.15b 3Y MS +35, EU850m 5Y MS +60
  • Cramo EU150m 2/2022 MS +225
  • UBS Group Funding (Jersey) EU1.25b 8NC7 MS +108
  • European IG credit pipeline here and HY credit pipeline 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
TKA GR (thyssenkrupp AG)

To de-activate this alert, click here

UUID: 7947283