HALISTER1: EU CREDIT DAILY: Summer Lull; AngloGold Profit, NAB Bad Debts

EU CREDIT DAILY: Summer Lull; AngloGold Profit, NAB Bad Debts

(Bloomberg) -- Aug. 15, Assumption Day, marks the height of the European summer season and likely suggests a quiet week ahead for credit mkts. Asian equities register tentative gains overnight though, as sentiment remains underpinned by optimism that rates will remain low, Bloomberg strategist Simon Ballard writes.
  • GBP corporate credit risk may see some near-term pressure relative to EUR, USD peers as U.K. data this week gives first insight into Brexit-era economy
    • But BOE, ECB corporate bond-buying programs to remain key pillars of support for demand/supply dynamics
  • CDX IG closed +0.4bps at 76.47 in overnight session; iTraxx Asia Ex Japan IG currently +0.4bps at 115.10 and iTraxx Australia quoted +0.4bps at 102.87
NEWS
  • Corporate News
  • AngloGold Profit More Than Doubles on Price Gains, Cost Drop
  • H&M July Sales Beat Ests.
  • Thai Airways 2Q Net Loss 2.92b Baht vs 12.8b Baht Loss Y/y
  • Clas Ohlson July Sales Fell 1% vs SME Direkt Est. Increase 1.3%
  • Everbright Intl 1H Net HK$1.21b Vs Restated HK$1b Year Ago
  • Newcrest Full-Year Profit Falls 24% on Lower Gold Prices
  • William Hill Rejects Increased Offer From Suitors 888 and Rank
  • Financial News
  • National Australia Cash Profit Falls 3% as Bad Debts Rise
  • Israel Discount Bank 2Q Profit Rises 46% to 393m Shekels
  • Credit Rating News
  • Aurizon Ratings Unaffected By 2016 Results: S&PGR
  • Noble Group’s Liquidity Crunch ‘Temporary,’ Fitch Ratings Says
  • Santos Rtgs Unaffected By GLNG Impair Charge: S&PGR
  • Other News
  • Treasuries Fall Behind Company Debt as Pimco Pursues Credit
  • All or Nothing in China Bond Recoveries as Bankruptcy Murky
ANALYST VIEWS
  • With the dollar becalmed despite other central bank QE and a low probability of a U.S. rate hike before the November elections, investors appear to have a clear window to take on risk without necessarily worrying about macro factors. The reach for yield remains insatiable: Jefferies
NEW ISSUES
  • EIB 1.125% 9/2036 EU400m Tap MS -12
  • Commerzbank EU250m 0.05% 7/2024 Covered Tap MS -16
  • 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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