HALISTER1: EU CREDIT DAILY: Solid Platform; Wendel Rises, RBC Optimistic

EU CREDIT DAILY: Solid Platform; Wendel Rises, RBC Optimistic

(Bloomberg) -- Asian credit market gains overnight and higher oil prices amid expectation of an OPEC production cut should provide firm platform for EUR risk assets Thursday, Bloomberg strategist Simon Ballard writes.
  • Government bond yields remain biased towards upside, net accretive for risk/credit quality as based on improving macro
    • Corp credit still at the core of incremental yield investment strategies
  • Velocity and magnitude of rates market selloff key to risk appetite; modest inflation outlook, measured yield increase should help underpin credit spreads near-term
  • Bloomberg Barclays Eur-Agg Corporate index closed Wednesday at 126bps (flat); Bloomberg Barclays Eur HY index closed at 421bps (-4bps)
  • CDX IG closed Wednesday at 72.66 (-0.7bp); iTraxx Asia Ex Japan IG is currently -0.5bps at 125.25 and iTraxx Australia quoted -0.7bps at 108.254
NEWS
  • Corporate News
  • Glencore Sees 2016 Marketing Ebit Toward Upper End of Range
  • Daily Mail FY16 Rev. Beats Estimates, Dividend in Line
  • Anglo American Sells 9.7% Interest in Exxaro for $215 Million
  • Wendel NAV EU139.5/Share at Nov 18; 3Q Sales Rise 2.1%
  • Elekta 2Q Adj. Ebita Misses Lowest Estimate in Range
  • Brookfield Said in Exclusive Talks to Buy Bharti Infratel
  • Financial News
  • Santander Announces Agreement to Provide Apple Pay in Spain
  • RBC chief optimistic despite fall in earnings; Net income down 2 per cent in fourth quarter
  • Banco Popular Weighs Merger, Has Approached BBVA: Expansion
  • DBS Eliminates a Dozen Jobs at Brokerage as Trading Slumps
  • Rating News
  • S&PGR Affirms Greater Wellington ‘AA/A-1+’ Rtgs; Otlk Stable
  • Thai Banks Face Further Pressure; Ratings Supported by Buffers: Fitch
  • Fitch Downgrades Tower Bersama to ‘BB-’; Outlook Stable
  • Asia-Pacific Banks May Face Ratings Cuts on Weak Economy: S&P
  • Other News
  • Global Bonds Suffer Worst Monthly Meltdown as $1.7 Trillion Lost
  • Swedish FSA Sees ‘Clear Challenges’ Regarding Housing, Debt
  • China Slaps 10% Tax on Ferrari, Bentley Cars to Curb Luxury
ANALYST VIEWS
  • We lost a bit of the hard-earned performance last month from situations that had nothing to do with the corporate bond markets. We’re pointing the finger at Donald Trump. Next year’s corporate bond performance is going to be the most fiddly and difficult one to predict for many a year: creditmarketdaily.com
NEW ISSUES
  • ChemChina EU700m 5Y MS +180
  • State of Rhineland-Pfalz EU500m 1/2027 MS -17
  • Swedbank Mortgage GBP250m 5Y Covered UKT +65
  • Telekom Finanzmanagement EU500m 10Y MS +92
  • Uniper EU500m 2Y MS +37
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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