HALISTER1: EU CREDIT DAILY: Slide Into June; Ahold Beats, HSBC Job Cuts

EU CREDIT DAILY: Slide Into June; Ahold Beats, HSBC Job Cuts

(Bloomberg) -- EUR and GBP corp bond spread consolidation of early May has been fully reversed and cash corp credit benefits from robust demand/supply dynamics, but risk asset sentiment is fragile and remains susceptible to macro/micro headline gyrations as June begins, Bloomberg strategist Simon Ballard writes.
  • Asia credit mkts lackluster overnight as China May PMI held at 50.1, painting picture of subdued growth; suggests weak open for EUR risk sentiment this morning
    • Manufacturing gauges for euro area and U.S. also due today; latter likely watched closely as indicator of FOMC decision on June 15
  • June could prove to be a tumultuous month around FOMC meeting, U.K. referendum (June 23) and expected commencement of ECB CSPP
  • Risk Appetite model carries firm tone into June
  • CDX IG closed -0.2bps at 76.54 in overnight session; iTraxx Asia Ex Japan IG currently -0.4bps at 141.36
NEWS
  • Corporate News
  • Ahold Earnings Beat Estimates on Revamp in U.S., Netherlands
  • Hyundai Motor May Car Sales Rise 10.4% Y/y to 429,080 Units
  • Halfords FY Profit Beats Estimates, Targets Net Debt 1x Ebitda
  • Wolseley Sees In Line FY Trading Profits Ex-Restructuring Costs
  • Kia Motors May Sales Rise 0.6% to 243,599
  • Telford Homes FY Pretax Up 28%, Sees Profit Rising Over 3 Years
  • Centrica Reports Loss of 13mcm/d U.K. Gas Injection Capacity
  • Hyundai Heavy Said to Get Bank’s Approval to Raise $2.2 Billion
  • Elekta 4Q Sales, Ebita Miss Ests.; Sees Weak Results in 1H
  • Financial News
  • HSBC Said to Cut Senior Investment-Banking Jobs to Lower Costs
  • Barclays Director Accused of Trading Tips for Home Repairs
  • ING Names Fernandez Niemann to Head Wholesale Banking From Nov
  • Sberbank Seeks to Boost Banking Cybersecurity Shield
  • Credit Rating News
  • S&PGR Affirms ’BB+’ Ratings On Metalsa, Outlook Still Stable
  • Fitch Maintains Rating Watch Positive on West China Cement
  • Other News
  • BlackRock, Nuveen Snub Bonds for Stocks as Fed Rate Odds Rise
  • Dubai Said to Prep for Bond as Gulf Arabs Rush to Market
  • Saudi Arabia Said to Weigh Bond Sale of as Much as $15 Billion
ANALYST VIEWS
  • EU2b a month would be a good effort and about as much as the ECB will reasonably be able to get its hands on. It simply wouldn’t be able to lift more than that without a serious and major distortion of corporate bond market valuations: creditmarketdaily.com
NEW ISSUES
  • La Banque Postale EU500m 12Y Tier 2 MS +225
  • BNG EU750m 8Y MS -2
  • Credit Suisse EU1.25b 7Y MS +88
  • ESB Finance EU600m 15Y MS +95
  • Generali EU850m 32NC12 Tier 2 MS +435
  • HSBC EU1b 12Y Tier 2 MS +240
  • ICADE EU750m 10Y MS +123
  • KfW EU5b 5Y MS -22
  • NRW Cities EU125m 10Y Bonds MS +49
  • RCI Banque EU750m 7/2019 Bonds MS +53
  • Lower Saxony EU750m 10Y MS -6
  • Thales EU600m 7Y MS +55
  • Prudential $1b Perp NC5 5.25%
  • 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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