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EUR Market Wrap

CREDIT UPDATE


  • Bunds closed 4-5bps cheaper after the ECB’s op framework review pointed to slightly easier refinancing conditions vs. most expectations with no notable hawkish surprises.
  • Main/XO ended -1bp/-5bp, outperforming CDX IG/HY by close to 1bp/4bp and bringing YTD underperformance to 1bp/13bp. €IG/€HY cash ended -3bp/-5bp with belly €IG spreads outperforming (3-10yr spreads -3.7bp) and Sr Banks again outperforming at -5bp (now -26bp MoM vs. -17bp for €IG).
  • SXXP rose 0.2% with Retail expanding on earlier gains to end +3.3% with Zalando +19% and Inditex +8% on strong earnings. Autos ended -1.2%, led lower by VW at -4% after a disappointing Q4 and weak China guidance.
  • HK equities are underperforming at -1% though the wider region trades flat with the Nikkei +0.3% supported by a slightly weaker yen. Stoxx 50 futures are flat. Up today we have:


GMT/Local

Impact

Country

Event

0700/0800

***

SE

Inflation Report

0800/0900

***

ES

HICP (f)

0930/1030

EU

ECB's Elderson at European Banking Federation meeting

1100/1200

EU

ECB's Schnabel Speech at MMCG meeting

-

***

CN

Money Supply

-

***

CN

New Loans

-

***

CN

Social Financing

1230/0830

***

US

Jobless Claims

1230/0830

**

US

WASDE Weekly Import/Export

1230/0830

**

CA

Monthly Survey of Manufacturing

1230/0830

***

US

PPI

1230/0830

***

US

Retail Sales

1400/1000

*

US

Business Inventories

1430/1030

**

US

Natural Gas Stocks

1530/1130

*

US

US Bill 08 Week Treasury Auction Result

1530/1130

**

US

US Bill 04 Week Treasury Auction Result

1800/1900

EU

ECB's De Guindos fireside chat at Foros



Final Type

Issuer

CompRating

Rank

Ticker

Spread Against

Spread

Tightening From IPT

BBG NIC

Amount (bn)

Total Cover

Autos

STELLANTIS NV

BBB+

Sr Unsecured

STLA 3 1/2 09/19/30

MS

90

42.5bp

-5.5bp

0.75

4.0x

Autos

STELLANTIS NV

BBB+

Sr Unsecured

STLA 3 3/4 03/19/36

MS

123

49.5bp

-1.2bp

0.5

12.2x

Banks (Sr Unsec)

VIRGIN MONEY UK PLC

BBB+

Sr Unsecured

VMUKLN 4 03/18/28

MS

120

50.0bp

6.3bp

0.75

10.0x

Communications

DEUTSCHE TELEKOM AG

NR

Sr Unsecured

DT 3 1/4 03/20/36

MS

65

37.5bp

11.1bp

0.75

2.9x

Covered (Banking)

VSEOBECNA UVEROVA BANKA

AA+

Secured

VUBSK 3 1/4 03/20/31

MS

70

15.0bp

-2.4bp

0.5

5.0x

Covered (Local Authority)

DEUTSCHE KREDITBANK AG

AAA

Secured

DKRED 2 7/8 03/21/36

MS

36

6.0bp

7.7bp

0.5

2.0x

Pharma

UCB SA

NR

Sr Unsecured

UCBBB 4 1/4 03/20/30

MS

170

40.0bp

N/A

0.5

6.0x

Services

RELX FINANCE BV

BBB+

Sr Unsecured

RELLN 3 3/8 03/20/33

MS

87

43.0bp

2.7bp

0.85

3.9x

Utilities

FINGRID OYJ

A+

Sr Unsecured

FINPOW 3 1/4 03/20/34

MS

73

34.5bp

N/A

0.5

4.6x

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