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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds ended +3bp/+6bp with our DM team flagging US data and BoJ speculation as putting upward pressure on ECB rates rate expectations.
  • Main/XO closed +1.5bp/+10bp, bringing levels back above 52bp/299bp. €IG/€HY cash ended -1bp/+0.5bp with short-dated €IG outperforming once again and Utilities and Energy leading the way tighter at ~-1.7bp while Capital Goods lagged slightly at -0.9bp.
  • SXXP closed -0.2% with Media the best performing sub-index (looks broad-based despite Embracer -11%) and Basic Resources holding onto earlier underperformance to end -1.5%.
  • Asia equities again mixed with the HIS -1.9%, bringing the index into negative WoW territory. Stoxx 50 futures are -0.1%. Up today we have:

GMT/Local

Impact

Country

Event

0700/0800

**

SE

Unemployment

0745/0845

***

FR

HICP (f)

0900/1000

**

IT

Italy Final HICP

0930/0930

**

UK

Bank of England/Ipsos Inflation Attitudes Survey

1000/1100

*

IT

Retail Sales

-

***

CN

Money Supply

-

***

CN

New Loans

-

***

CN

Social Financing

1215/0815

**

CA

CMHC Housing Starts

1230/0830

*

CA

International Canadian Transaction in Securities

1230/0830

**

CA

Wholesale Trade

1230/0830

**

US

Import/Export Price Index

1230/0830

**

US

Empire State Manufacturing Survey

1315/0915

***

US

Industrial Production

1400/1000

**

US

U. Mich. Survey of Consumers

1430/1530

EU

ECB's Lane lecture at Imperial College

1700/1300

**

US

Baker Hughes Rig Count Overview - Weekly




Final Type

Issuer

CompRating

Rank

Ticker

Spread Against

Spread

Tightening From IPT

BBG NIC

Amount (bn)

Total Cover

Banks (T2)

VOLKSBANK WIEN AG

BBB

Subordinated

VOWIBA 5 3/4 06/21/34

MS

310.0bp

50.0bp

N/A

0.5

4.2x

Chemicals

ARKEMA

BBB-

Subordinated

AKEFP 4.8 PERP

B

238.8bp

57.5bp

N/A

0.4

6.5x

Communications

NBN CO LTD

AA-

Sr Unsecured

NBNAUS 3 1/2 03/22/30

MS

85.0bp

30.0bp

-12.3bp

0.7

3.3x

Communications

NBN CO LTD

AA-

Sr Unsecured

NBNAUS 3 3/4 03/22/34

MS

108.0bp

34.5bp

-0.2bp

0.6

3.5x

Covered (Banking)

BPER BANCA

AA-

Secured

BPEIM 3 1/4 01/22/31

MS

62.0bp

13.0bp

-19.3bp

0.5

8.8x

Covered (Banking)

SPARKASSE DORTMUND

AAA

Secured

SSPDOR 3 03/21/31

MS

45.0bp

7.0bp

N/A

0.25

2.6x

Covered (Finance Companies)

STADSHYPOTEK AB

AAA

Secured

SHBASS 2 7/8 03/21/29

MS

26.0bp

6.0bp

-9.9bp

0.75

2.6x

Services

AMADEUS IT GROUP SA

BBB

Sr Unsecured

AMSSM 3 1/2 03/21/29

MS

75.0bp

37.5bp

5.8bp

0.5

3.6x

Services

ELIS SA

BBB-

Sr Unsecured

ELISGP 3 3/4 03/21/30

MS

125.0bp

45.0bp

N/A

0.4

7x

Utilities

TENNET HOLDING BV

BB+

Jr Subordinated

TENN 4 5/8 PERP

MS

194.7bp

55.0bp

N/A

0.55

4x

Utilities

TENNET HOLDING BV

BB+

Jr Subordinated

TENN 4 7/8 PERP

MS

221.4bp

66.3bp

N/A

0.55

5.5x

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