MNI China Daily Summary: Friday, April 19

MNI BRIEF: China Hog Market More Balanced In Q2 - Ministry

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Higher At 7.1046 Fri; -5.03% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1046 FRI VS 7.1020

INE Business Confidence Data Supports Upward Revisions In Q1 GDP Forecasts

MNI: GERMANY FEB PRODUCER PRICES -2.9% Y/Y

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Aroundtown (ARNDTN: NR, BBB- Neg) {AT1 GY Equity}

REAL ESTATE
Credit BulletsHomepagemarkets-real-timeCreditBullet
  • As we flagged might be the case yesterday mid's are continuing tighter in the short-end led by Euro July 25's (-7bps) & March 26's (-5bps).
  • To reiterate we net see slight miss on S&P expectations given valuations fell 11% vs. expectations for 7-8%, everything else looks in line. Continued non-call on perp's likely to drop it into HY given equity/debt treatment by S&P- though that decision is still net positive for buybacks/refi on short-end seniors.
  • We refrain from commenting further along the curve where real-estate market fundamentals become more important & where there is increased uncertainty to managements' approach to capital allocation (currently singular focus on debt paydown).
  • That uncertainty seemed to be shared by markets yesterday - £29/31's trading through the earnings/€ short-end rally. For what its worth equity forecasts look somewhat sanguine in years ahead (+€608m/+2% in valuation gains vs. S&P expectations for -2%.).
  • Re. headlines this morning on DB repossessing a London office from WeWork - we don't see much (direct) readthrough to Aroundtown - London is 7% of the portfolio but only 1% of the office portfolio.
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  • As we flagged might be the case yesterday mid's are continuing tighter in the short-end led by Euro July 25's (-7bps) & March 26's (-5bps).
  • To reiterate we net see slight miss on S&P expectations given valuations fell 11% vs. expectations for 7-8%, everything else looks in line. Continued non-call on perp's likely to drop it into HY given equity/debt treatment by S&P- though that decision is still net positive for buybacks/refi on short-end seniors.
  • We refrain from commenting further along the curve where real-estate market fundamentals become more important & where there is increased uncertainty to managements' approach to capital allocation (currently singular focus on debt paydown).
  • That uncertainty seemed to be shared by markets yesterday - £29/31's trading through the earnings/€ short-end rally. For what its worth equity forecasts look somewhat sanguine in years ahead (+€608m/+2% in valuation gains vs. S&P expectations for -2%.).
  • Re. headlines this morning on DB repossessing a London office from WeWork - we don't see much (direct) readthrough to Aroundtown - London is 7% of the portfolio but only 1% of the office portfolio.