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.
€IG +4 vs. Staples +2, Cyclicals +3
Value in primary has been short-lived. We were advising caution on both the names that came this week, investors largely ignored us with Euro Reckitt books firm and £ deals both going through. T+1 secondary performance seems to reflect the lack of value we saw; Burberry is wider, Reckitt is unch in €s and wider in £.
For those pointing to the weaker secondary market; our cheap views in primary from last week saw T+1 moves of -15 (PostNL) & -7 (Barry Callebaut). Both would have been enough protection for today's moves and both have continued performing through this week (-28 and -17 since pricing respectively).
Couple of French names saw pressure this week including La Poste, Air-France, Sodexo, Carrefour - none are close to screening value for us and we see the French Geo-pol as a good opportunity for these curves to correct into FV. Aeroports de Paris was only direct downgrade to A- Stable and was interestingly on the 1-notch uplift being removed.
We have two retailers who have no curve with mandates out; Otto (unrated) and El Corte Ingles (NR/BBB-/BBB-). It should set us up for another interesting week in primary. Thoughts and FV's to follow, key pieces from this week below.
- Walgreen & Mobico; £/€ on different pages?
- Who is Peltz and what does he want with Rentokil?
- Final cautions on Burberry
- Reckitt still not cheap for us
- Aerports de Paris joins Air-France with no direct rating uplift from S&P
- Lufthansa 30s; 1k denoms doing the legwork again?
- Tesco gives a firm Q1 Trading update
- Pluxee acquires with no price-tag but faith in management to stick to CMD targets
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.