LEVFIN SNAPSHOT: Junk Credit Risk Reaches Highest Since November
2020-12-10 15:41:42.475 GMT
By Libby Cherry
(Bloomberg) — A gauge of credit risk for European high-
yield debt rose by the most since late October as investors mull
the threat of a no-deal Brexit and the prospect that new central
bank stimulus may not be used in full.
* The Markit iTraxx Europe Crossover index widened as much as
~13.7bps to ~256.1bps, the highest value since November
* “The market is just a bit disappointed at the measures
announced by the ECB, but the moves seem to be moderate for the
time being,” said Juan Valencia, a credit strategist at Societe
** “There are also Brexit negotiations that are still going
nowhere and the market is increasingly thinking it may be a no
deal”, said Valencia
** NOTE: The ECB today escalated its crisis stimulus, while
cautioning that not all of it may be used
* TAP’s EU375m bonds due December 2024 gained as much as
1.9 cents on the euro to 80.6, before being quoted at 79: CBBT
data compiled by Bloomberg
** The Portuguese carrier will reduce its number of routes by
about 25%, according to a report by Negocios on its
restructuring plans on Wednesday
*** The restructuring plan will not “hit” holders of two bonds
issued in 2019, the report said
* Gaming firm Codere’s EU500m bonds due November 2023 rose 2
cents on the euro, the fourth day of gains, to 66.4
** As well as benefiting from a more positive outlook for next
year due to vaccine progress, the likelihood that the Italian
goverment will delay the need for companies to renew concessions
is looking “quite high,” Mateo Salcedo, a credit analyst at
Spread Research, said in a phone interview
** If Codere doesn’t need to renew the concession, it can focus
next year on reducing debt, Salcedo said
* Carnival’s EU425m bonds due February 2026 fall 0.7 cents on
the euro, the most in a month, to 115.8
** NOTE: Dec. 9, Royal Caribbean Guests Are in Limbo After False
Covid Diagnosis