HALISTER1: EU CREDIT DAILY: Strong Technicals; Heineken Beat, SHBASS Miss

EU CREDIT DAILY: Strong Technicals; Heineken Beat, SHBASS Miss

(Bloomberg) -- Sentiment and price action in credit markets remain robust amid strong 1Q corp earnings releases, notwithstanding Goldman Sachs, and with oil hovering around $40, Bloomberg strategist Simon Ballard writes. But susceptibility to headline and macro data point risks will stay.
  • Recent strength in risk appetite has compressed EUR IG cash spreads back to lvls last seen in August last year; EUR HY cash bonds at tightest since Dec
    • And with ECB due to start corp bond buying by end 2Q, technical strength of credit mkt appears set to get stronger
  • But Brexit polemic continues to cloud GBP credit mkt outlook, weigh on risk valuations; no sign yet of meaningful GBP risk buying at wider spread lvls
  • Continued narrowing of spread dispersion and vol in Risk Appetite Model creates fertile backdrop for Argentina return to mkt
  • CDX IG currently -1.0bps at 75.68 in overnight session; iTraxx Asia Ex Japan IG is currently +1.3bps at 139.52
NEWS
  • Corporate News
  • Telia Earnings Beat Estimates as Swedish Fiber Drive Pays Off
  • Heineken 1Q Organic Consolidated Beer Vol. Beats Ests.
  • ABB Profit Beats Estimate as China Growth Slows
  • Villeroy & Boch 1Q Sales, Op. Ebit Rise; Confirms 2016 Outlook
  • Syngenta Reports Fifth Quarter of Sales on Currency, Pricing
  • China Telcos Fall Ahead of China Mobile 1Q Results Today
  • Woodside Lifts 1Q Output From Yr Ago on Pluto LNG Production
  • Financial News
  • Handelsbanken Profit Misses Estimates After Fee Income Fell
  • GAM Holding Posts $3.2 Billion of Investment Management Outflows
  • Bank Fees at Risk in Sweden as Negative Rates Aren’t Only Threat
  • Old Mutual Reports Larger Delta Lloyd Stake of 3.80%: AFM Filing
  • Metro Bank Says Delivered a Strong Trading Performance in 1Q
  • CaixaBank Studies Capital Increase for BPI Deal: Expansion
  • Credit Rating News
  • Hutchison Port Trust Rtg Unaffected By Debt Plan: S&P
  • Japan Steelmakers’ Strategies Pressure Credit Quality: S&P
  • Fitch Affirms MUFG’s Larger Senior Unsecured Note Issue at ’A’
  • Aussie Banks Face Rising Problems With Commodity Loans: Moody’s
  • Other News
  • Dreams of a Draghi Cash Drop Fade in Europe’s Political Abyss
  • Trump, Clinton Win New York Primaries to Control Their Races
  • Trump wants to dump Janet Yellen: AFR
ANALYST VIEWS
  • Prices are going up, spreads are tightening and we have a taste of what’s to come once the ECB comes shopping. Some paper is coming out, but it is ... having no negative impact on the market: creditmarketdaily.com
NEW ISSUES
  • Arion Bank EU300m 3Y MS +270
  • Burford Capital Sells GBP100m Retail Bonds With 6.125% Coupon
  • Carrefour EU750m 8Y MS +50
  • Cirsa Funding EU450m 5NC2 Senior Notes 5.875%
  • Deutsche PBB EU500m 4Y MS +125
  • EIB EU450m 0.875% 9/2024 Tap MS -19
  • IFB Hamburg EU250m 10Y MS +5
  • Italy EU6.5b 20Y BTPS +39
  • KfW EU1b 0.625% 1/2025 Tap MS -17
  • Lebanon $700m 8Y, $300m 15Y 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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