HALISTER1: EU CREDIT DAILY: Strong Primary; C. Suisse Loss, Emirates Climbs

EU CREDIT DAILY: Strong Primary; C. Suisse Loss, Emirates Climbs

(Bloomberg) -- Corporate credit spreads remain well-underpinned, even as the market may be coming under some veiled pressure from weak economic data, intensifying Brexit risk and speculation over the status of the FOMC’s June meeting, Bloomberg strategist Simon Ballard writes.
  • Primary market pricing highlights consistency of investor risk appetite; new deals pricing inside IPT
    • Nevertheless, investors do seem to increasingly recognize the need to balance the hunt for yield with capital preservation prospects
  • EUR IG/HY spread currently 363bps, from high of 496bps in February and low of 153bps in May 2014
    • Curve could re-steepen further on new macro weakness, decline in risk appetite; ECB CSPP a fillip for EUR IG corp risk relative to HY
  • Risk Appetite model maintaining drift higher in spread dispersion while vol remains anchored
  • CDX IG currently -0.1bps at 84.29 in overnight session; iTraxx Asia Ex Japan IG is currently +0.2bps at 145.68
NEWS
  • Corporate News
  • Nokia Revenue Misses Estimates Amid Waning Carrier Spending
  • EasyJet 1H Loss Narrower Than Est; Plans to Raise Div. Ratio
  • Thyssenkrupp CFO Repeats Consolidation Needed in Steel Sector
  • China Railway Materials to Make Bond Payment, Plans Asset Sales
  • Emirates Group FY Profit Climbs 50% as Airline Profit Rises 56%
  • Financial News
  • Credit Suisse Posts Second Straight Loss as Thiam Deepens Cuts
  • ING Profit Falls on Regulatory Costs, Loss at Markets Unit
  • Munich Re Cuts Full-Year Profit Target to 2.3 Billion Euros
  • Hiscox 1Q Gross Written Premiums Rise 10% in Local FX
  • SoftBank Profit Misses Estimates on Continued Losses at Sprint
  • Credit Rating News
  • Fitch Affirms Sumitomo Life at ’A’; Outlook Stable
  • Evonik Raised to Baa1 by Moody’s on Air Products Unit Deal
  • S&PGR Afrms Goldman Sachs’ A$ Cash Reserves Fund At ’AAAm’
  • Other News
  • German Industrial Output Falls for Second Month as Demand Cools
  • Negative-Rate Lending Closer to Reality in Japan as Tibor Slumps
  • A New Generation of German Homebuyers Falls in Love With Draghi
ANALYST VIEWS
  • There is no fear in the corporate bond market. Last week’s broad macro weakness was so last week: creditmarketdaily.com
NEW ISSUES
  • Airbus Group Finance EU1.5b 10Y, 15Y Bonds
  • AstraZeneca EU2.2b 3-Part Deal
  • Fonciere Des Regions EU500m 10Y Green Bond MS +137
  • L-Bank GBP250m 5Y UKT +42
  • Shell EU1.75b 8Y, 12Y Bonds
  • 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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