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Elis secondary is coming back in; 2-3bps tighter today

CONSUMER CYCLICALS
  • Its not a new phenomena - secondary selling off on supply and reversing back once deals price tight.
  • It came wide yesterday on a €400m 6yr (IPT+170, FV+120, Priced+125) - investors coming in for it with books covered 7* & 45bps of tightening.
  • No-word from Moody's (Ba1 Pos.) - markets already prices (in full) the uplift into IG which we see no issue with.
  • It continues to price tighter on short end (e.g. 26's) vs. ISS - we don't see any downgrade risk on ISS despite it starting up a DKK1b buyback this yr (it had headroom on leverage to do so) - I.e. we think ISS can move tighter noting both names trade wide vs. boarder sectors.

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