VF Mid's Continue Moving Tighter; 26's still screen wide to us

Low vol day across risk assets hasn't stopped VF {VFC US Equity} (Baa3 Neg, BBB, Neg) mid's from streaming another 3-7bps tighter. The 26's (screened cheapest to us) have moved 16bps tighter this week & 32's -24bps. It was the € curve that screened wide for us & in line with that $ curve has been more muted; -7bp move in front-end and -3bp in the 30's. We still see potential for tightening in the 26's here at Z +161/4.7%/€98.8.

VF announced yesterday (after the US equities close) that Caroline Brown would be appointed to company board of directors effective immediately. Its also guiding to another independent appointment that will be "mutually agreed with Engaged capital" and seems to align with recent reports that Engaged's bid had found support from founding family members. VF’s Board will comprise 13 directors, including no more than 11 of VF’s current directors (vs. current 12). Thin trading in equities post-market but reaction seems to be marginally positive - equities are -3% since earnings (from initial -15% drop).