HALISTER1: EU CREDIT DAILY: Referendum Focus; Toyota on Brexit; UAE Banks

EU CREDIT DAILY: Referendum Focus; Toyota on Brexit; UAE Banks

(Bloomberg) -- Market is likely to see continued volatility, with sentiment fragile over the next few days in the run-up to the U.K.’s EU referendum, Bloomberg strategist Simon Ballard writes.
  • Asian equities stronger overnight as latest Oddschecker poll favors “remain” camp; suggests risk assets could be susceptible to a sharp selloff Friday if “leave” wins
    • Highlights global reach of referendum impact
  • Cash bond liquidity may remain low ahead of vote; investors sidelined by uncertainty
    • Most extreme price moves likely in synthetics and equity indexes, buffeted by polls and headline risk
  • Risk Appetite Model highlights fragility in sentiment ahead of referendum
  • CDX IG closed -0.03bps to 82.76 in overnight session; iTraxx Asia Ex Japan IG currently -4.1bps to 143.75
NEWS
  • Corporate News
  • Majestic Wine FY Revenue Beats Est., Trading Conditions Tough
  • Toyota Warns Brexit May Lead to 10% Duties for U.K.-Built Cars
  • Financial News
  • BBVA Launches Plan With Excess Staff in Focus: El Confidencial
  • Facing Slower Growth, U.A.E. Bank Deals May Just Be Starting
  • Abu Dhabi’s NBAD, FGB in Talks to Form Top Bank in Middle East
  • EU Bank Resolution Plan Ignored in Denmark After Bail-In Trauma
  • Credit Rating News
  • Moody’s assigns definitive Aaa rating to Series 9 Tranche 1 of Bank of New Zealand’s Covered Bond Programme
  • Fitch Maintains Kiwibank on Rating Watch Negative
  • S&PGR Says CKHH, CKI, PAH Rtgs Could Withstand Brexit
  • S&PGR Rates QBE Insurance Group Subordinated Notes ’BBB-’
  • Other News
  • Morgan Stanley Says Bet on Bonds Ahead of Vote; Treasuries Fall
  • Abenomics Needs to Be Reloaded as Policy Goals Elusive, Says IMF
  • Brexit Campaigners Are Deceiving Voters, Cameron Says
  • Pimco Sees Asian Credit Insulated From Direct Impact of Brexit
  • Rajan Exit Notice Before Brexit Poses Stress Test for India
ANALYST VIEWS
  • Little else will matter this week but the UK referendum... expect a tetchy week, with markets up or down by small or large amounts depending on the prevailing newsflow around the opinion polls: creditmarketdaily.com
NEW ISSUES
  • No New Issues Friday
  • 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)

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