Spread Research in the news


Les investisseurs en dette spéculative en position de force – L’Agefi

[...] "Ce type de clause (corona) n’est pas inhabituel, rappelle Benjamin Sabahi, responsable de la recherche crédit chez Spread Research. Mais il s’agit généralement de remboursements consécutifs à des augmentations de capital. La clause étend cette possibilité à toutes les levées de ’cash’, quelle qu’en soit la source.»


Fun Is Over for Theme Parks in the Age of Social Distancing – The Daily Telegraph

[…] “In a world where social distancing becomes the norm, we would certainly see theme parks operating below full capacity,” says Mateo Salcedo at Spread Research. “But even with significant health initiatives, social distancing and other measures imposed by governments, I believe demand will remain weak, and operating big parks could no longer be attractive."[…]


Junk Bond Buyers Fear Borrowers Are Keeping Them in the Dark – Bloomberg

[…]“The fact management didn’t hold a call likely contributed to the bond decline,” said Joan Sehim, an analyst at Spread Research in Lyon, France. “We fear the lack of communication from management hides a horrific operational situation.”[…]


Spanish Gaming Company Defers Coupon Payment Amid Virus Lockdown – Bloomberg

[..]Amid the current pandemic more firms are likely to take advantage of the grace period around coupon payments to seek financial help, according to Benjamin Sabahi, head of Credit Research at Spread Research. “With Covid-19, you may find cases where companies find liquidity from loans guaranteed by the state so they prefer to wait,” he said. “Since we’ve got so many exceptional tools right now in the markets, I would say it is quite likely that companies could use the grace period more than in the past.”[...]


Merlin Deal Marks First Use of State Cash for Bond Payment in EU – Bloomberg

“We believe that the euro high-yield market should be inspired by Merlin and U.S. transactions including the same mechanism,” SpreadResearch analyst Mateo Salcedo wrote in a note to clients on Friday.


Here’s What to Watch in European High-Yield Bonds This Week – Bloomberg

(…)Those businesses resilient to Covid-19 are expected to tap the market first going forward, Spread Research analysts said.(…)


Rush to junk bonds gathers pace on Fed’s `game-changing’ pledge – Reuters

(…)“Inflows should keep pace, as this is a driver in addition to putting an end to the lockdown periods in both the Europe and the U.S.,” said Benjamin Sabahi, head of credit research at Spread Research, a Lyon-based provider of high-yield market analysis.(...)


Distressed Borrowers Seek Creative Lending to Survive Virus – Bloomberg

(…)Borrowers including French equipment rental firm Loxam and Spanish gaming company Cirsa, both with bonds quoted at distressed levels, are potential candidates for super senior lending, according to analysts at Spread Research (...)


Carval, CQS Moving In on Battered Telecom Credits After Mayhem – Bloomberg

(...) “Panic selling has generated some good entry points,” said Do Ake, analyst at Spread Reseach in Lyon, France. “Companies such as Altice and Vodafone Ziggo offering cable services have recently pushed back their maturities and are in a better position than Telecom Italia, which has to refinance 4 billion of euro-denominated bonds by 2022.”(...)


COVID – 19 – Spread Research’s Message and Actions

In light of extreme market conditions due to the COVID-19, Spread Research continuously monitors the situation and publishes updated views on the 180 companies within our coverage (…)


Nouryon’s 2026 Bonds Face More Declines, Spread Research Says – Bloomberg

Spread Research sees more downside risk for Nouryon’s EU485m senior unsecured 6.5% 2026 notes due to the coronavirus’ impact on earnings, analyst Benjamin Sabahi wrote in a note late last week.(...)


Refi risk flares in European high-yield market – Reuters

Several high-yield borrowers could face an uphill battle to refinance upcoming debt due to the coronavirus curtailing appetite for risk, with CMA CGM, Vallourec and Codere among the credits highlighted by investors and analysts.(...) "We believe coming quarters will continue to be challenging, making the 2021 bonds refinancing highly uncertain," wrote Spread Research analysts (...).