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Siemens Energy (BBB-): Cross Asset React

CAPITAL GOODS
  • As per earlier bullet, noises that SIENFI may be back selling its problematic turbines soon.
  • Equity up nearly 7%.
  • Cash spreads 3-4 tighter.
  • Compared to our Fallen Angel Watch universe, SIENFI trades wider than the average corporate (ex REITs).
  • We seem room for upside from here if the company can get back on track.
  • We would expect something of a spread premium to remain, with the market likely to perceive this as higher risk than had been the case historically.

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