Halister News

(Bloomberg) -- It may be Black Friday, but rates traded in the red again overnight as U.S. treasuries reopen post Thanksgiving. Higher yield structure likely to weigh on risk asset sentiment, particularly in Euro periphery and emerging markets heading into weekend, Bloomberg strategist Simon Ballard writes.

• Credit spreads may struggle to tighten materially against rising yield backdrop, even as month-end dynamics come into play over next couple of sessions
  • Govt bond selloff continues to weigh on credit returns; Bloomberg Barclays EuroAgg 4.13% ytd total return as of Nov 24 vs 6.00% Oct 1
• Early close to U.S. market again Friday may damp EU credit volumes; U.K. 3Q GDP, Italian September retail sales and Spanish PPI data points may offer some direction

• Bloomberg Barclays Eur-Agg Corporate index closed Thursday at 124bps (flat); Bloomberg Barclays Eur HY index closed at 423bps (flat)
• CDX IG remained closed Thursday; iTraxx Asia Ex Japan IG is currently +0.7bps at 127.25 and iTraxx Australia quoted -0.6bps at 109.41

NEWS

• Corporate News
• Telekom Malaysia 3Q Net Income 159.8m Ringgit Vs 166.9m Rgt Y/y
• Pennon 1H Rev. Declines, Says On Track to Meet Forecasts
• B2 Holding 3Q Operating Profit Rise; Sees Portfolio Acquisitions
• Airasia Group CEO Fernandes Says Profits Are Sustainable
• Vietnam Airports Corp. 9-Mo. Net at 540b Dong: Chung Khoan
• J&J Said to Make Takeover Approach for Drugmaker Actelion

• Financial News
• DBSA Says 1H Profit Declines 27% to 1.04b Rand Y/Y
• Avoid Banks, Even U.S. Ones, as Rally Belies Risks: Berenberg
• Swedish FSA Says Nordea CET1 Ratio Requirement Was 17.3% End 3Q
• Paschi Sets Maximum Conversion Price at EU24.9 as Part of Recap
• Macquarie, ANZ to Pay $11 Million Over Malaysia Rates Probe
• AfDB Names 5 Director-Generals as Part of 10-Year Business Plan
• Woori Bank Sells 4 Tankers From Hanjin Shipping for $58.6m

• Rating News
• BHP’s Outlook Moved to Stable by Moody’s; Ratings Affirmed
• S&PGR Afrms QTMB ‘BBB+/A-2’ Rtgs; Off CreditWatch; Otlk Stable
• S&PGR Affirms Chubb New Zealand ‘AA-’ Rtgs; Outlook Stable

• Other News
• World’s Biggest Pension Fund Gains $21 Billion as Stocks Rally
• Greece’s Biggest Bank Sees Trump Boost to Country’s Economy

ANALYST VIEWS

• The Italian referendum is crucial; should Renzi lose, the subsequent “turmoil” will see the ECB potentially spring into aggressive action several days later...whatever the result the ECB will prolong current QE programmes for at least another 6 months: creditmarketdaily.com

NEW ISSUES

• Arion Bank EU300m 5Y MS +165
• Autostrade Per L’Italia EU600m 2/2027 MS +120
• BNP Paribas EU500m 6/2022 Green Bond MS +40
• Iberdrola Finanzas EU750m 3/2024 Green Bonds MS +77
• ITV EU500m 7Y MS +170
• 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.