Autos / Industrials / Utilities: Week in Review

Earnings from BHP AIFP GLENLN BASGR HEIGR MBBGR AALLN were largely non-events. Weak outlook from CE was taken slightly negatively, with aggressive deleveraging required post M&A. On the other hand, HOTGR traded slightly tighter with improved metrics and a small outlook upgrade.

The main piece of M&A news came from Saint-Gobain offering to buy CSR; a manageable acquisition within rating headroom. MMBGR will sell down equity stakes and buy back stock.

THAMES was one of the worst performers(~+20bp), with media reports of a state rescue driving sentiment.

Interestingly LEASYS and ATOSTR are among the best performers, both having got primary done at aggressive levels.

Primary deals came aggressively again, but ENELIM NC5.35 hybrid earned the black mark; currently quoted 45c below reoffer. Order books dropped to €1.75bn at final from €4.8bn earlier on the back of aggressive pricing at 4.875%.