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Not all staple grocers have been safe;

CONSUMER STAPLES
  • Auchan is setting new highs, 27s 5% above bunds seems incredulous but investors must be struggling to answer the same questions we are.
  • ITM 29s we see as the most in danger on levels.
  • We don't have a issue with Ahold, Carrefour, Tesco or Woolworths.
  • We are starting to see some value in Italy's Essleunga 27s which is again on blanket decompression widening the BBB/BB pickup. Essleunga runs competitive margins and BS is squared away around low 3x now. Private co though so don't expect quarterly's.

    • Elo/Auchan (NR/BB Neg) +20-40
    • new ITM 29s (unrated) +24
    • Esselunga 27s (Ba1/BB+) +20
    • Morrisons (B2/B+) 27s +20
    • Woolworths (BBB) 28s +15
    • REWE (BBB) 30s + 7
    • Carrefour (BBB) +4-7
    • Ahold Delhaize (BBB+) +4-7
    • Tesco (BBB-) +3-6

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