Halister News

(Bloomberg) -- Credit markets look set to open with a stronger tone, retracing the weakness of last week. Risk buoyed overnight by news FBI sees no grounds to charge Hillary Clinton over her use of a private email server, Bloomberg strategist Simon Ballard writes.

• Nonetheless, speculation over the prospects of a Clinton or Trump administration will likely weigh on credit market activity again Monday
• U.K. Brexit polemic also set to cloud GBP corporate bond space over coming week; raises more questions than answers
  • Q3 earnings analysis focusing on early impact of the U.K.’s vote to leave EU on companies around the world; weaker GBP a fillip for U.K. exporters, a cost for U.K. imports

• Risk Appetite Model set firm ahead of U.S. election
• Bloomberg Barclays Eur-Agg Corporate index closed Friday at 112bps (+1bp); Bloomberg Barclays Eur HY index closed at 391bps (+5bps)
• CDX IG closed Friday +0.8bps at 80.43; iTraxx Asia Ex Japan IG is currently -1.4bps at 117.37 and iTraxx Australia quoted -1.6bps at 105.66

NEWS

• Corporate News
• Ryanair 2Q Net Beats Estimate, Plans EU550m Buyback
• SoftBank’s Profit Beats Estimates Amid Improvement at Sprint
• Philips Enters Partnership With Masimo, Ending Pending Lawsuits
• Fevertree Sees Full Year Results Materially Ahead of Estimates
• Informa Says Remains On Track for Full Year Expectations
• PostNL 3Q Rev Misses Estimate, Underlying Income Rises
• Brother Lifts Full-Year Profit Forecasts; 2Q Earnings Surge Y/y
• Domino’s Pizza Raises FY17 Ebitda Growth Target to About 30%

• Financial News
• HSBC’s Profit Beats Estimates as Capital Buffer Strengthens
• Hiscox 9-Month Performance ’Strong,’ Gross Written Premiums Rise
• Nykredit to Be ‘Low Risk, Stable’ Share, Chair Tells Berlingske

• Rating News
• Fitch Maintains Kiwibank on Watch Negative After Holder Change
• S&PGRBulletin: Westpac Ratings Unchanged On Full-Year Results
• BlackRock Says Australia May Lose AAA as Soon as Next Month

• Other News
• Mexican Peso Gains With Europe, U.S. Stock Futures in FBI Boost
• What’s Keeping Deutsche Bank From Selling Postbank? CoCo Bonds
• China Passenger Vehicle Sales Growth to Decelerate in ‘17: Fitch

ANALYST VIEWS

• Trump wins and so it goes that we live in an era of great uncertainty. A political virgin in all aspects will be in charge and the markets believe a dash for safe havens will be the way forward. Clinton wins, and it will be relief all round. Higher stocks, tighter spreads, high underlying yields and reduced macro / market volatility: creditmarketdaily.com

NEW ISSUES

• NAB GBP450m 5Y Covered, EU500m 7Y Senior
• Synlab EU940m Senior Secured 7/2022 FRN E +350
• A2Dominion Housing Group GBP250m 12Y UKT +230
• 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.