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Edenred in focus on Italian Regulators Allegations; Cash bonds hit harder than equities

CONSUMER CYCLICALS

Some reprieve for Edenred {EDEN FP Equity +1.5%} equities this morning - now down ~10% (peak -15%) since headlines on Italian public prosecutors alleging fraud around a 2019 public tender emerged. Credit (NR, A- Stable) still struggling (+2-4 wider this morning) after a ~10+ sell-off yesterday - with strong compression in A/BBB spreads leaving it firmly wide of its rating. No view from us on the situation, noting its faced regulation issues before with S&P unch on A- since 2010. FY23 results come on Tuesday morning - no revisions have flowed through to bbg consensus (if any) on headline earnings/FCF in FY23/24.

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