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Dufry (now Avolta) (DUFNSW; Ba2, BB+; S) 28s{AVOL SW Equity}

CONSUMER CYCLICALS
  • Cheap view on 28s taken off. Its still holding around recent ~lows on yields despite rates coming higher & leaves it spread at Z+120 (prices to maturity/3.375% coupon). That's now firmly inside IG cheap views we have like PVH29s (Z+135) & IDSLN28s (Z+160).
  • Fine for carry but for those that want shorter duration 2% 27s pricing to maturity gives up only single digits on yield & 20bps on spread.

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