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Porsche (NR): Modest New Issue Performance So Far

CONSUMER CYCLICALS

• Yesterday’s 32s and 29s are bid ~2-3 better vs reoffer this morning.

• 30s widened 10bp on the back of the new deal with large NIP.

• We noted yesterday that this is a unique credit whose valuation relies on novelty value for retail. The risk is that as more bonds are issued the novelty fades, already evidenced at the last issuance event.

• While the differential between old and new bonds remains large, we would caution that the gap may be bridged by secondary widening rather than new issues performing if pricing becomes less technically and more fundamentally driven.

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