November 29, 2024 12:20 GMT
CONSUMER CYCLICALS: Flutter; €29s continue to tighten in
CONSUMER CYCLICALS
(Secured 29s; Ba1/BBB- Pos/BBB)
Lessons learnt;
- Caution on disregarding RV based on ratings or unfamiliarity; FDJ investors are flat vs. Flutter -23bps in the two weeks since - flutter giving the better carry as well.
- Opportunities for value emerge after primary; the $ and € 29s were its first public bond issuance and pricing locally was rough (we were not covering it then). It traded +1.6pts immediately after in secondary but sold-off in September on a large acquisition (Snai) - we still saw fundamentals intact and saw value.
We see it fair here, reminder €2.5b bridge loan taken out, any refi supply maybe split between $/€.
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