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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
PVH 27's & FV 5Y screen more value than H&M. Tapestry 27's screen cheapest in sector.
- We see FV at +110, spread +18bps above longer-tenor H&M August 29’s at +92bps/€84 & +10bps above its shorter Dec 27's.
- Secondary/27's have sold off +14bps since weak earnings guidance (see previous note below) & mandate announcement - we see some of this on earnings as overdone given limited impact longer-term. We expect a tightening back into H&M/broader consumers similar to Kering's initial sell-off.
- We ignore the Levi 27's (Ba2, BB+, BB+: S) at +91 - likely pricing a early call here - its only callable at par starting March of next year (trades at €98.6).
- The Tapestry 27's (Baa2, BBB; Double Neg) screens cheapest in the sector, its been tightening vs. PVH 27's, compressing the spread from 55bps to now 32bps.
- We don't expect a Greenium; the H&M 31's & VFC 28 & 29's are all green.
Recap on PVH earnings; https://marketnews.com/pvh-baa3-pos-bbb-pos-pvh-us...
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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