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.
VF {VFC US Equity} € cash lines among the best performers in IG , mid's 4-9bps tighter across the curve. We flagged after earnings a downgrade was likely, despite management reassuring investors on priority to reduce debt and enough cash from asset sales to pay down ~$1.75b in upcoming maturities - $1b in a Dec '24 facility & the front $750m April 25 line - priced at $96/Z+121 in $ markets.
Still Moody's was conditional on headline improvement particularly in underperforming brand Vans (was ~30% of sales in FY23) which came in at -29% (cc) vs. expectations for -23% in Q3. Management's counter to balance sheet health was FY24 FCF guidance of $600m (left unch), expected recovery in FY25 & continued progress in inventories.
Regardless of a downgrade into HY, we see value in the € curve - short end lines screen wide against $ lines (XCCY) & that's mirrored in € curve pricing well wide (unlike $ curve) against HY name Coty (Ba2 Pos, BB+ Pos, BB+ Pos) & crossover rated Walgreen Boots (Ba2 S, BBB- Neg). The € 4.125% March 26's at Z+171/€99 screens attractive to us - b/a is 10bps wide.
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.