Spread Research in the news


Le marché « high yield » commence à tanguer – L’Agefi

[...]"C'est un nouveau signe de la nervosité croissante entourant les actifs risqués et de l'indigestion du marché>>, relève Benjamin Sabahi, responsable de la recherche crédit chez SpreadResearch.[...]


Scope Ratings, Qivalio, Inbonis : trois agences de notation alternatives qui montent – Les Echos

[...]Ces dernières années, de nombreux acteurs de la notation ESG sont passés sous capitaux anglo-saxons. Pas Qivalio, détenue majoritairement depuis juillet 2020 par Andromède, le family office de la famille Hériard-Dubreuil, actionnaire de Rémy Cointreau.[...]


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

Faurecia will join the growing pipeline of high-yield deals slated for later in the year after agreeing to acquire German automotive supplier Hella. The transaction will be financed by a 5.5 billion euro ($6.5 billion) committed bridge facility, which will be taken out with term loans and high-yield bonds, according a company statement. It will also raise 800 million euros of equity. The deal will have a major impact on the group’s credit metrics, with the reported net leverage substantially above 2.0x proforma the transaction, compared to 1.5x previously, analysts at Spread Research said in a note to clients.


Car Rental Punts Are Turning Into Big Profits for Bond Traders – Bloomberg

[..]Revenues are underpinned by a “continued mismatch between the fleet levels and demand,” according to analysts at Spread Research, who have an overweight rating on Avis’ longer-dated eurobonds.[...]


Hedge Fund Owners of Europcar to Double Their Money With VW Deal – Bloomberg

“For the funds that took part in the restructuring, it is a great business,” said Mateo Salcedo, a credit analyst at Spread Research-Qivalio Group. “They got a high valuation due to the good moment the industry is going through, and the acquisition removes the uncertainty of what’s going to happen with the travel industry in 2022.”


Three Deals That Show the Junk Bond Bonanza May Have Hit a Wall – Bloomberg

[...]“The pricing still doesn’t compensate for the risks that the company poses,” said Malick Donval, credit analyst at Spread Research, who issued a sell recommendation to its clients on the new bonds (Ideal Standard) citing the company’s 1 billion euro loan partly due in 2024.[...]


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

[...]In a note published Monday, analysts at Spread Research said they remained cautious on the company’s already weak cash generation and significantly higher leverage and recommended clients sell their exposure.[...]


Le marché high yield est en pleine forme – L’Agéfi

[..]«Les obligations sont devenues très attractives par rapport aux leverage loans, comme l’a montrée l’augmentation de la taille de l’émission de Nobian», ajoute Benjamin Sabahi, responsable de la recherche crédit chez Spread Research. [...]


Picard Tries Bond Market Again, Two Months After Rejection – Bloomberg

[...]convincing investors of the firm’s growth outlook remains key, Solweig Pierronnet, senior analyst at Spread Research, said. “Picard will have to reassure investors on growth prospects and measures implemented to control operating costs over the long term as, like all food retailers, we believe that Picard is at the top of a cycle,” Pierronnet said.


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

[...]The latest set of transactions include financing leveraged buyouts and repaying state loan debt. On Friday, U.K pub chain Punch Taverns slashed pricing on its 600 million-pound ($833 million) 5NC2 secured notes to 6.125%, rounding out a winning week for borrowers, which were all able to priced their deals sales below initial price talk, according to analysts at Spread Research. “Last week, U.S. policy makers made it clear that they expect to make two interest rates rises in 2023 from near zero now in order to fight inflation; we view this as the clear driver for the new issue wave investors will have to deal with this week,” analysts at the firm said in a note to clients on Monday[...]


Appetite for Risky Credit Shows Recovery Trade Far From Over – Bloomberg

[..]“The market has again demonstrated that names most hit by the Covid-19 pandemic, such as cosmetics producer Coty, are in a position to issue on attractive financing terms, provided that they can reassure investors that recovery is on track,” Spread Research analysts wrote in a note to clients on Thursday.[...]


Stay-at-Home Pandemic’s Junk Winners Brace for Return to Normal – Bloomberg

[...]“Some of these companies accessed the debt markets after showing robust results, others after selling assets,” said Benjamin Sabahi, head of credit research at Spread Research. “The question is what will happen once the bullish primary-market trend we’ve seen since the first news of efficient vaccines comes to an end, andhow will normal results post-Covid19 look.”[...]