Halister News

(Bloomberg) -- Credit markets stay resilient on back of China data and corporate earnings, but trading volume in the secondary markets remains muted, Bloomberg strategist Simon Ballard writes.

• Higher Asian equities may lift European credit markets at open; Singapore central bank’s surprise easing will create a further fillip to risk sentiment
• Bank of England rate decision on macro radar today; no rate change expected given recent anemic economic data and EU referendum uncertainty
• Small pick-up in volatility element of Risk Appetite model, but spread dispersion appears firmly anchored

• CDX IG currently +0.8bps at 79.02 in overnight session; iTraxx Asia Ex Japan IG is currently -2.5bps at 139.00

NEWS

• Corporate News
• Unilever 1Q Underlying Sales Growth Slightly Above Estimate
• Burberry Sees Tough Luxury Outlook as Second-Half Revenue Slips
• Mothercare Says FY16 Overall Profit Within Range of Estimates
• Debenhams 1H Pretax up 5.5%; On Track For FY Profit
• Casino French Sales Rise on Growth at Hypermarkets
• Nestle 1Q Organic Sales Growth Beats Ests., Confirms Outlook
• Sodexo 1H Rev. In Line, Adj. Oper. Profit Misses, Keeps Forecast
• Nintendo Jumps Most in 3 Weeks After Outlooks for Miitomo Sales
• Fortescue Says War Chest for Cutting Debt Swells to $1.5 Billion

• Financial News
• Deutsche Bank Found ‘Systemic’ Failure Behind Russia Cash Flight
• Bendigo & Adelaide Bank 3Q Net Interest Margin 2.19%
• Swiss Re, L&G Said to Mull Bids for Deutsche Bank Abbey Life
• ANZ Bank to Reinstate 4 Employees Stood Down Amid Rates Probe

• Credit Rating News
• Australia’s AAA credit warning at risk unless Turnbull government raises taxes: Moody’s
• Valeant Pharma Rating Cut to B From B+ by S&P; on Watch Dev
• S&P Lowers Peabody Energy Rtgs To ’D’ On Chapter 11 Filing

• Other News
• Japan’s Biggest Bank Criticizes BOJ Policy for Fueling Anxiety

ANALYST VIEWS

• Secondary market corporate spread tightening has stalled of late... Maybe the high level of issuance hasn’t been repricing the market wider, but it appears to have limited the amount spreads would have tightened otherwise: creditmarketdaily.com

NEW ISSUES

• Allianz EU1.5b 4Y, 15Y Bonds
• BPCE EU750m 10Y Tier 2 MS +245
• Carrefour Banque EU500m 5Y FRN 3mE +68
• Deutsche PBB EU500m 19Y Covered MS +25
• Eika Boligkreditt EU500m 7Y Covered MS +24
• Enexis Holding EU500m 10Y MS +45
• ESM EU3b 8Y MS -14
• FMS Wertmanagement $400m 1/2018 FRN Tap 3mL +11
• KBN EU1b 10Y MS +9
• Kennedy Wilson Europe EU150m 3.25% 2025 Tap MS +255
• Nationwide BS GBP750m 3Y Covered FRN 3mL +48
• Land NRW EU1.25b 10Y MS Flat
• Poland EU750m 2.375% 1/2036 Tap MS +125
• 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.