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Stellantis (Baa1/BBB+): Primary Reprices Secondary

CONSUMER CYCLICALS
  • STLA priced 6.5Y at MS+90 and 12Y at MS+123 yesterday, 40 and 47bp tighter than tight end of IPT.
  • Secondary spreads initially widened slightly on the IPT announcement.
  • We initially had FV at MS+105a, 130a.
  • With the new issue coming through FV, secondary rallied strongly to close ~5bp tighter.
  • Secondary is another 4-6 tighter today, with room for some lines to tighten a little further based on where the new deals are trading.
  • One of several recent cases of primary repricing secondary tighter, flipping the usual relationship on its head. Further evidence of very strong conditions in credit markets at present.

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