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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.
TECHNOLOGY
- Comms & Tech both underperformed the €IG index by ~1bp this week, bringing YTD underperformance to 9bp and 12bp respectively.
- No €IG supply again this week though TeamSystem did come in for a EUR 700mn 7y FRN (B2/B-/B+) that tightened 37.5bps to price at 3mE+350. Since the second week of June (when we saw ITV, Dell and BT come to market) we have had just one €IG TMT deal, the EUR 300mn Radiotelevisione Italian deal on 03 July. Respectively these lines are +3bp/-5bp/-12bp/-17bp since issuance.
- On the ratings front we saw ASML moved to a positive outlook at Moody’s (now A2[P]/A+) while S&P moved TeamSystem to outlook positive on their refinancing (now B2/B-[P]/B). Optics Bidco was rated BB+[N] by S&P (now Ba1/BB+[N]/BB).
- This week saw earnings from Ubisoft (mixed), Netflix (slight credit positive), Publicis (credit positive), Nokia (credit negative), Telenor (slight credit positive), Telia (slight credit positive), Omnicom (mixed), Telekom Austria (neutral), ASML (slight credit positive though reports of trade curbs overshadowed), Tele2 (neutral) and Elisa (neutral).
- In terms of news, we saw Warner Bros bonds sell off on reports of a split which would see the bulk of net debt remain with the TV segment; https://marketnews.com/wbd-bonds-sell-off-on-reports-of-split-debt-expected-to-remain-with-tv-segment.
- We also saw a sell-off in Teleperformance bonds similar to the last sell-off in February when Klarna announced a new AI product that could harm Teleperformance’s call centre operations though this time the announcement came from Salesforce; https://marketnews.com/teleperformance-equity-sells-off-on-salesforce-ai-announcement.
- There were also reports that Verizon could sell 5000-6000 of its towers for over USD 3bn; though the article makes no mention of America Towers we note that a sublease agreement between the two is due to expire in March 2025 which could coincide with a deal; https://marketnews.com/reports-verizon-baa1-bbb-a-to-sell-towers-ahead-of-amt-baa3-bbb-bbb-lease-lapse.
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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