February 05, 2025 07:37 GMT
AUTOMOTIVE: Nissan (NSANY Baa3[N]/BB+[N]/BBB-[N]): Downside Scenario
AUTOMOTIVE
- How much could NSANY widen? Before the Honda talks were announced in December, NSANY 28s were ~85bp wide to F 28s; that’s +65bp from yesterday’s close, a reasonable starting point to think about potential downside.
- NSANY 28s closed 60bp wide to HNDA 28s, i.e. just under 50% convergence.
We would not expect the potential merger to get priced out fully. Headlines are coming out now suggesting talks may end, but have not yet.
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