July 24, 2024 11:41 GMT
Essity (ESSITY; Baa1, BBB+; S) 31s coming out
CONSUMER CYCLICALS
31s are showing mids -0.5pts/+12. It is the lowest cash px line (highest upside on par call) but has been drifting lower for some time now and now is finally above swaps.
Again we are unclear what is going on with the Essity situation...earnings last week (implied) bondholders still have not given formal notice.
Caution for those not in the know (like us), downside on par call is large or said alternatively 31s are pricing only 20% chance of sucessful EoD trigger.
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