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Tapestry (TPR; Baa2/BBB; double Neg) local 31s follow equities bid from yesterday

CONSUMER CYCLICALS

TPR €31s have gone bid (+0.5pts). Somewhat unsurprising given Capri moves yesterday - bonds have always been keen to price more than equities. Once made sense, now less so (event risk only, little carry).

Upside/downside on CPRI equities we see as +60%/-44% and on TPR 31s we see +4.8/-4.4 pts . We are pricing to Baa3 ratings on close and including the protection from step-ups.

Capri another +1.2% on the open.

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