MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

MNI: US MBA: MARKET COMPOSITE -0.2% SA THRU JUL 05 WK

US MBA: REFIS -2% SA; PURCH INDEX +1% SA THRU JULY 5 WK

Indeed Wages Tick Higher, But Future Revisions Are Likely

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

Coty (Secured; Ba2 Pos, BB+ Pos, BBB- Stable) New 3NC2

CONSUMER CYCLICALS
Credit BulletsBulletHomepagemarkets-real-timeCredit
  • We were excited to see Coty bring a new issue onto a secondary we already thought was cheap (the 28s). New 3NC2 has not disappointed, brushing past a 7bp sell-off in 3y bunds to move in 13bps (BVAL bid side), trading half the NIC away on yields & moving through our FV on spread (we don't attach any value/see a early call on this line).
  • Screen cheap still stands on 28s, callable starting on Sept '25 but we see gross deleveraging targeting the $1.6b in '26 maturities first. Eventual call on excess deleveraging or cheaper refi (5.75% coupon) we see as likely.
  • FY24 Earnings (12m to June) come late August, guidance was left unch but at top-end of range - seen as conservative after a Q3 beat.

146 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.
  • We were excited to see Coty bring a new issue onto a secondary we already thought was cheap (the 28s). New 3NC2 has not disappointed, brushing past a 7bp sell-off in 3y bunds to move in 13bps (BVAL bid side), trading half the NIC away on yields & moving through our FV on spread (we don't attach any value/see a early call on this line).
  • Screen cheap still stands on 28s, callable starting on Sept '25 but we see gross deleveraging targeting the $1.6b in '26 maturities first. Eventual call on excess deleveraging or cheaper refi (5.75% coupon) we see as likely.
  • FY24 Earnings (12m to June) come late August, guidance was left unch but at top-end of range - seen as conservative after a Q3 beat.