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Grifols Credit Weak On Positive News

HEALTHCARE

Grifols seeing unusual price action in response to CNMV report (GRF SM). Cash bonds weak on good news, even after relatively large widening yesterday. Seems counter-intuitive.


  • The Spanish regulator (CNMV) this morning published its response to Gotham’s short-selling attack on Grifols which, in most meaningful ways, gave the firm a clean bill of health.
  • It did note issues with some of the “alternative performance measures” the company uses and gave it 15 days to address these. We usually treat these numbers with a degree of scepticism in any case.
  • Our takeaway was that this was positive news, yet the equity is selling off and the two ’25 bonds (GRFSM 1 5/8 02/15/25 and GRFSM 3.2 05/01/25) are trading relatively mixed (+8bp and -1bp, respectively), having both sold off 30-60bp yesterday. This seems harsh to us but there is no new news here on the S-RAAS deal which is, perhaps, a disappointment.

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