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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 outperformed the broader €IG index by 2bp/3.5bp this week though when stripping Fins from this we end up with flat/2bp of outperformance.
- After a dry spell in primary, we saw three IG TMT issuers in the market; yesterday saw Dell’s 5yr and BT’s 9.5yr offering NICs of 13bp and 8bp while on Wednesday ITV’s 8yr offered 5bp (or more depending on how you valued the HY CPN step) though the ITV underperformed poorly at the break.
- In HY we saw Moody’s upgrade Telecom Italia by one notch with positive outlook though some were expecting two notches. Upgrade driven by expected debt reduction from NetCo sale to KKR; they see adj-gross debt/EBITDA to drop to 3.3x by end-2023, further reduction to 3x by 2025 against thresholds of 3x/4x.
- On spreads we saw stronger relative performance from Oracle (strong earnings though only EUR bond is very short), Elisa (no clear news catalyst), ITV (26s on tender though new bond underperformed at the break) and DXC (takeover rumours, change of control covenant likely to be triggered if true).
- Weaker relative performers included (Global Switch; private, limited visibility), TDC Net (Danske analyst noted increasing pressure from competitor Norlys fibre expansion), Teleperformance (likely beta move to French vol) and Warner Bros (noting poor equity performance on a few catalysts, see link below).
- Chart as of yesterday’s close.
- Reports of Vodafone selling Indus Towers stake; https://marketnews.com/reuters-vodafone-to-try-sell-indus-towers-stake-next-week-via-block-deals-credit-positive
- WBD equity performance; https://marketnews.com/wbd-equity-at-15yr-low
- Oracle results; https://marketnews.com/oracle-q4-broadly-in-line-outlook-and-announced-partnerships-credit-positive
- DXC takeover reports; https://marketnews.com/reuters-sources-indicate-apollo-and-kyndryl-to-bid-for-dxc-technology, https://marketnews.com/dxc-change-of-control-language
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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