Free Trial
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.
CONSUMER STAPLES
We've been hoping for PVH like NICs to be around the corner after 3 straight weeks of slow supply onto tight (bar JABHOL) secondary curves. Unfortunately Tuesday did not deliver on that, but we did think Kellanova's 10Y (Baa2/NR/BBB) screened value on IPT - strong cover & tightening left a 5bp NIC. Coca-Cola was testing insurers thirst for long-end with its 20Y - no signs of weakness, pricing 2bps through our FV. Secondary saw tad more vol than last week, but at the headline level both staples & cyclicals end unch. Key pieces linked below;
- Tesco the next Solvay? We don't think so but as the Essity situation has shown longs can be stubborn & facts are open to debate - caution for shorts.
- Tapestry 25s out of focus yet we see it as the best risk-reward. Caution on now high cash price 27/31s & on hedging choices.
- Mobico still a tough IG name to like. VFC and/or Elo/Auchan may see a turnaround before it does. On wait & see for all three, VFC next up with 4Q results on the 22nd.
- Metro AG: 29s among best performing new issues but we flag caution ahead of a rough year. Could see refi early next year - it has a poor track record in primary (issues wide).
- PVH; new 29s screening value. We are waiting for the rough 1Q earnings to roll through later this month.
- Booking.com; no longer screening the reverse yankee discountit once did.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok