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Bayer (Baa2 Neg, BBB Pos, BBB+ Neg) credit focused woes continue.

HEALTHCARE

Snr lines another 10-13bps wider, 30's are +40 since last Monday's lawsuit loss & its 32's are now wide of Viatris (Baa3 Stable, BBB- Neg) - both trade below par around ~€80.

$ markets don't give any reassurance on the extent of downgrade pricing (to VTRS/bottom of IG) - Bayer there is +20 to VTRS even at shorter 30's/6yr.* Vs. A/A- rated Pharma's, pickup to Bayer is well wide/attractive vs. what broader index yields offer.

Focus may be on any negative outlook attached to downgrades to bottom rung of IG (likely Moody's to be first) - plenty of room for curve to widen if fallen angel expectations kick in.

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