LEVFIN SNAPSHOT: Trading Muted Amid U.S. Election Uncertainty
2020-11-04 13:40:36.413 GMT
By Libby Cherry
(Bloomberg) — Trading is thin in the European high-yield
market with U.S. elections too close to call, though corporate
credit risk reversed an earlier advance.
* The Markit iTraxx Europe Crossover index tightened ~8.5bps to
~341.4bps, after widening as much as as 19.5bps earlier
* Trading volumes for euro-denominated bonds are tracking lower
than the 30-day low, as seen by MarketAxess at midday
* Leveraged loan trading activity was also hushed, with a few
names marked down 12.5-25 cents in the euro early in the day,
people familiar with the matter said, but prices are largely
unchanged as investors watch the results trickle in and wait for
clarity
* EU390m bonds due May 2025 from Cirsa rose 0.9 cents on the
euro to 87.8 cents, marking three days of gains
** NOTE: Blackstone’s Cirsa Sees Recovery to 2019 Trading Levels
by 4Q21
** “Although liquidity is comfortable enough to rule out any
credit default in the short term, stricter restrictions are
looming in Spain and Italy with further impact on the activity
level, leverage and cash position”: analysts at Spread Research
in an emailed note to clients on Thursday
* Smurfit Kappa’s EU1b notes due Jan. 2026 rose 0.2 cents on the
euro, after posting 3Q results ahead of management’s
expectations this morning
** The company expects to deliver Ebitda in the range of EU1.46b
to EU1.48b for the full year 2020
* Q-Park’s EU425m bonds due March 2025 continued to rally,
gaining 1.3 cents on the euro to 92.3