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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.
CONSUMER CYCLICALS
(FR) Luxury goods equity is flying this morning, highlights opportunity in LVMH benchmark ‘25s:
- LVMH (MC FP) - obviously positive results with China slowdown little in evidence
- Christian Dior (CDI FP) - direct lateral from LVMH but not a credit issuer.
- Beverages: more nuanced, the best consensus beat on revenues amongst LVMH’s businesses was “Wines & Spirits” which was +4% organic y/y in 4Q23 after two quarters of going backwards. The most obvious laterals are therefore: Remy (RCO FP) and Pernod-Ricard (RI FP)
RCO’s only a minor credit issuer (and no prices streaming this morning) but Ricard (rated Baa1, BBB+, BBB+) is streaming tighter this morning. LVMH’s poor credit performance in Jan-24 means it’s lost all its premium to Ricard (see graphic), egregious when LVMH is rated several notches higher (Aa3, AA-, nr) but this result is positive for both.
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.
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