HALISTER1: EU CREDIT DAILY: Volumes Seen Low; NZ Budget Credit Positive

EU CREDIT DAILY: Volumes Seen Low; NZ Budget Credit Positive

(Bloomberg) -- Credit market volumes likely to be muted again today after Corpus Christi and before U.K., U.S. holidays on Monday. Near-term tone to risk appetite appears constructive, although any changes in expectations toward June FOMC decision and/or U.K. EU referendum could quickly disrupt sentiment, Bloomberg strategist Simon Ballard writes.
  • G-7 has added fuel to Brexit debate with warning on global trade and jobs; uncertainty may add to near-term pressure on GBP corporate credit risk
    • Current social unrest in France also a potential negative for French macro and corporate credit-risk appetite
  • Today’s macro data: U.K., Italy, France consumer confidence
  • Risk Appetite Model portrays a firm tone to risk ahead of holiday weekend and month end
  • CDX IG closed -0.3bps at 77.02 in overnight session; iTraxx Asia Ex Japan IG currently -0.3bps at 141.00
NEWS
  • Corporate News
  • Laurent-Perrier FY Net EU25.2m; Est. EU25.4m
  • Lenovo Revenue Plummets 19% as Motorola Woes Weigh on Profit
  • Bashneft Board Recommends Dividend Payout of 50% IFRS Profit
  • Jet Airways Rises After Posting First Annual Profit in 8 Years
  • Financial News
  • Maybank 1Q Net 1.43b Ringgit vs 1.7b Ringgit Y/y
  • National Australia Sees Farmers Seeking Loans Amid Crisis
  • Credit Rating News
  • Moody’s Says New Zealand Budget Projections Are Credit Positive
  • S&PGR Affirms ’BBB-’ Debt Rating On Fermaca, Outlk Still Stbl
  • Fitch Affirms Anhui Transportation at ’BBB+’; Outlook Stable
  • Other News
  • Why yield-seekers should look at corporate credit
  • Gundlach Says Yellen Speech to Be Dovish as Treasury Bid Soars
ANALYST VIEWS
  • Whatever happens, it’s lower and tighter, corporate bond yields and spreads, that is: creditmarketdaily.com
NEW ISSUES
  • Enel (Baa2/BBB/BBB+) EU1.26b 10Y notes at MS +95
  • FCE Bank (Baa2/BBB/BBB-) GBP400m 6Y bonds at UKT +177
  • Demeter Investments BV (BBB+ by S&P) $800m 36NC11 Tier 2 notes with 5.625% coupon
  • UniCredit (Baa1/BBB-/BBB+) EU750m 10.5NC5.5 Tier 2 notes with 4.375% coupon
  • European IG credit pipeline here and HY credit pipeline here
  • Issuers exposed to S-T rollover and interest-rate reset risk here
  • NOTE: There will be no EU CREDIT DAILY on Monday. Publication will resume Tues May 31.
  • 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)

Topics
Leveraged Finance

To de-activate this alert, click here

UUID: 7947283