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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 flagged basis as cheap at -88bps in the days following its downgrade by S&P in to HY. It's CDS, now a member of Xover, has widened 34bps since vs 29's +6bp move driving basis higher.
- We are not sure why basis was left so negative on a then single rated IG name facing high uncertainty & a steep spread curve - regardless its now back to tights since issuance of the 29's/no firm view on direction from here.
- Re the cash curve, the 25's & 29's on either end of the curve have held firm in the session following the downgrade - rest of the curve has moved +20-30bps wider, led by the 26/27's.
- Again little surprise here- 29's already traded wide heading into the downgrade & the €695m outstanding 25's are the front maturity for it (ex. the small CHF line) - that's important for Elo given refinancing ability is in focus - its expected to continue with negative cash flow as it integrates loss making casino stores & S&P has questioned asset sales here given RE valuations.
- It did have €2.7b in cash on hand but that included pre-funding for the €1b 2024 line that has since matured.
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.
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