Free Trial
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
View unch on €25s as only line screening cheap. No change in TPR mgmt's confidence to close deal in earnings yesterday, Capri equities traded flat through it still pricing (est.) 70% chance of failure.
- Breakeven dates on current BVAL offer side below. Table may look merry but we'd caution it's on yield/total returns - sensible to look at given call option/px sensitivity - but leaves one unhedged to rates/the FV yield on deal closing - i.e. rates sell-offs may eat into the upside but does have protection from the call price option.
- We refrain from a 27s screen cheap view for now - probability weighted return is not great (well -ve in excess returns terms) but it may screen attractive for investors who don't mind leaving BS exposed to 0/flat returns over next 4-6months.
- Second graph is from other day (px little changed) and shows early sept. forced call - note though we see that as earliest risk currently, actual call may come earlier - another reason to keep an eye on Capri earnings coming this month.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok