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Atos Bonds Best Early Performers In €HY As Prices Continue To Bounce

TECHNOLOGY


  • Atos bonds streaming richer across the curve today with their 2025s the best performer in €HY, +€1.12 to €43.17. The Atos curve hit cheapest levels post-S&P downgrade on 19 Jan but have rallied consistently since then for their three shortest bonds +€10-€11 WoW.
  • Not much news since then - Atos’ Eviden and Microsoft yesterday entered a 5yr strategic partnership for Cloud/AI advancement, targeting $2.8bnin Cloud Services revenue for Eviden by 2028. We previously flagged the Atalian Refinancing as potentially supportive of Atos pricing on 20 Jan.
  • Short equity positions have increased to 13.8% of market cap though we note some funds decreasing their short positions (e.g. Qube, Astaris). Atos equity has rallied 32% from its 19 Jan trough though still remains 35% lower YTD.

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