Halister News

(Bloomberg) -- Overnight Asian equity/credit declines suggest a weak opening for EUR risk assets, although Friday’s corporate-bond selloff was a largely measured and composed one that simply erased some of the recent spread tightening, Bloomberg strategist Simon Ballard writes.

• Credit-market sentiment remains susceptible to gyrations in the rates outlook, Fed rhetoric ahead of Sept. 21 FOMC
• Spread weakness may prompt some investors to look for buying opportunities; a modest Fed tightening would be supported by improving macro fundamentals
  • Medium-term demand/supply foundations of corporate bonds remain firm; investors continue to eye incremental yield opportunities across the quality curve with primary market the key source of liquidity
• Risk Appetite Model eases back modestly on rates selloff
• Bloomberg Barclays Eur-Agg Corporate index closed Friday at 107bps (flat); Bloomberg Barclays Eur HY index closed at 367bps (+8bps)
• CDX IG closed +4.4bps at 79.60 in overnight session; iTraxx Asia Ex Japan IG currently +2.2bps at 109.95 and iTraxx Australia quoted +3.6bps at 98.98

NEWS

• Corporate News
• RWE to Push Ahead With Innogy IPO, Still Sees Listing in 4Q
• Sasol FY Adj. EPS 41.40 Rand vs 49.75 Rand Y/Y; Est. 40.31 Rand
• EDF French Workers Strike Extended 24 Hrs to Sept. 13-15
• Samsung Drops After Warnings to Stop Using Note 7 Phones

• Financial News
• Mortgage defaults tick higher among regional (Aussie) banks
• Morelli May Be Named New Paschi CEO as Soon as Thursday: Stampa
• Oil Impairments at Norway’s Banks Set to Rise, Regulator Says

• Credit Rating News
• Fitch: Basel III Add to Indian Banks’ Capital Trigger Risk

• Other News
• Basel Capital Revamp Endorsed Without Assurance Sought by Europe
• Musk Says Tesla’s New Autopilot Could Have Saved Driver’s Life
• U.K. Mustn’t Get Competitive Edge After Brexit, Danish PM Says

ANALYST VIEWS

• We still opine that yields will be going lower again, and that the current move in the U.S. will start to recede in terms of the contagion impact it is having on government bond yields here: creditmarketdaily.com

NEW ISSUES

• EDC GBP150m 1% 12/2020 Tap UKT +36
• Galp Gas EU600m 7Y MS +140
• State of Hessen EU300m 5Y MS -19
• 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.