FED'S SCHMID - WE STILL HAVEN'T BEAT INFLATION BACK TO 2%

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

MNI China Daily Summary: Thursday, November 21

MNI BRIEF: China To Enhance Support For Foreign Trade - MOFCOM

EZ/UK Bond Supply Calendar: UK Synd; EU-Bond Auction on Monday

US EIA:NAT GAS STORAGE -3 BCF TO 3,969 BCF NOV 15 WK

MNI: US NAR: OCT EXISTING HOME SALES 3.96M SAAR

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BASIC INDUSTRIES: Week in Review

BASIC INDUSTRIES
BulletCredit Bullets

Asset sales remain a theme in the sector, although none of the announcements this week were transformative.

  • SKF was the big mover this week, with investors eyeing event-of-default language in the docs following announced plans to spin off Automotive. Arguing that it’s substantial part of the business looks like a reach to us, but with the 31s still trading at an 88-handle vs 84 a week ago the implied probability is still only around 25%.
  • Lanxess announced the sale of Urethane Systems, improving leverage by 0.5x turns. Leverage still looks too high for the rating and we remain cautious on that with improvement in its end markets unlikely any time soon.
  • Stora Enso announced plans to sell forest assets. That helps the balance sheet, but it still has more to do to meet raters’ requirements.
  • Johnson Controls is said to be working on another asset sale, ADT alarms. We don’t expect deleveraging to be a priority.
  • Bouygues Telecom lowered medium term guidance, which already appeared out of line with consensus.
165 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Asset sales remain a theme in the sector, although none of the announcements this week were transformative.

  • SKF was the big mover this week, with investors eyeing event-of-default language in the docs following announced plans to spin off Automotive. Arguing that it’s substantial part of the business looks like a reach to us, but with the 31s still trading at an 88-handle vs 84 a week ago the implied probability is still only around 25%.
  • Lanxess announced the sale of Urethane Systems, improving leverage by 0.5x turns. Leverage still looks too high for the rating and we remain cautious on that with improvement in its end markets unlikely any time soon.
  • Stora Enso announced plans to sell forest assets. That helps the balance sheet, but it still has more to do to meet raters’ requirements.
  • Johnson Controls is said to be working on another asset sale, ADT alarms. We don’t expect deleveraging to be a priority.
  • Bouygues Telecom lowered medium term guidance, which already appeared out of line with consensus.