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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.
UTILITIES
- Utility spreads widened 3-4bp on the week, skewed by a 160bp average move from Thames Water. Drax put in an impressive 23bp tightening.
- Renewables companies including Orsted, Vestas Wind and Siemens Energy started the week with equity pressured; the jump in Trump’s presidency odds weighed on the sector. His administration is likely to roll back subsidies which hurts the equity growth story but we see less of an issue for credit. Threats to the turbine producers from China are also looming.
- Thames Water bonds continued their tumble following last week’s Ofwat draft determination. SAR is now taken as a given, the question is how much will the debt be haircut. A 20% midpoint seems a fair assumption currently.
- EnBW had to pay up to get their bonds away in primary on thin books, which led to an 8bp move in secondary.
- Enagas received a one notch upgrade from Fitch and outlook positive from Moody’s following asset sales. Engie was downgraded one notch by Fitch on higher leverage due to heavy capex needs.
- Naturgy, Statkraft, Enagas, Iberdrola, Elia, Italgas, Enel, REN and Terna report next week.
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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