Halister News

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- European IG cash spreads could see fading of tightening seen on Friday if price action in Asia overnight is anything to go by, Bloomberg strategist Simon Ballard writes.

• G-20 meeting this weekend has done little to buoy risk appetite as no concerted monetary or fiscal initiative agreed to fuel global economic growth
• Recent weakness in Bloomberg EUR HY cash index serves as a reminder that myriad risks remain
  • Investors cognizant that recent spread widening doesn’t necessarily warrant a blanket bid for corporate credit across the quality spectrum
• Geopolitical risk remains elevated; Syrian cease-fire short- lived. Merkel challenged on refugee crisis
• Risk Appetite Model highlights decline in spread dispersion, but steady volatility

• CDX IG currently +0.9bps at 110.30 in overnight session; iTraxx Asia Ex Japan IG is currently -0.4bps at 158.31

NEWS

• Corporate News
• Nintendo Falls After Halving Profit Goal on Weak 3DS Sales
• Slater & Gordon Posts $683 Million Loss on U.K. Unit Writedown
• Nissan Surges Most Since 2009 on Record $3.5 Billion Buyback
• BMW’s Stalled Growth Engine Opens Door to Luxury-Car Top Spot
• Morrison to Enter Pact W/ Amazon, Share Capacity in Ocado CFC

• Financial News
• Barclays Africa Drops Most in 7 Weeks as Parent Mulls Sale
• Bank Leumi Posts Fourth-Quarter Profit After Year-Earlier Loss
• Saudi Banks Loans-Deposits Ratio Worsens in Jan. as Loans Rise

• Rating News
• Qantas Returns From Junk-Bond Purgatory With Moody’s Upgrade
• Woolworths Ltd Credit Profile Expected to Improve From 2017: S&P
• Brazilian Companies See Credit Downgrades Surge to a Record High

• Other News
• Fed Dots Don’t Connect for Bond Traders Scorning Rate-Hike Path
• Kuroda Negative Rate Bazooka Fizzles on Overnight Lending Freeze
• Oil Pares Fourth Monthly Decline as U.S. Explorers Idle Rigs

ANALYST VIEWS

• We close out Feb. with returns on the up for all asset classes and out of the big three euro government bonds come top, with corporate bonds in second place and equities still languishing: creditmarketdaily.com

NEW ISSUES

• Lower Saxony EU250m 0.375% 1/2023 Tap MS -6
• RBC EU1.5b 5Y Covered MS +21
• Slovenia EU125m 3.125% 8/2045 Tap MS +175
• UniCredit EU1b 7Y MS +190
• 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.

• Please note that the EU Credit Daily will not be published tomorrow and will resume Wednesday