Spread Research in the news


La faiblesse des taux de défaut aide le high yield – L’Agefi

[...] Les nouvelles opérations (hors refinancements) atteignent 46 milliards d’euros (+86% de plus que l’an dernier), relève Spread Research. Les stratégistes de JPMorgan ont revu leurs prévisions d’émissions pour cette année pour le marché HY euro à 140 milliards (+20 milliards) dont 70 milliards nets (+30 milliards). Le marché devrait rester soutenu à court terme, prédit Spread Research. [...]


La fête bat son plein sur le primaire high yield – L’Agefi

Le marché primaire high yield (HY) euro est en ébullition. «Le marché primaire HY montre peu de signes de ralentissement», soulignent les analystes de Spread Research.[...]


Supply-Chain Bottlenecks are Boosting Shipping Firms’ Bonds – Bloomberg

[...]At the beginning of last year, “CMA CGM was seen as a company with a liquidity problem and no one expected it to experience the rebound it has recorded,” said Benjamin Sabahi, head of credit research at Spread Research, in a phone interview. “The company has been benefiting from a surge in trade from manufacturers, but we will see if the higher shipping tariffs will last long,” he said.[...]


Banks Clear Junk Debt from Balance Sheets as Europe Reopens – Bloomberg

[...]The Golden Goose deal “confirmed that retail and consumer goods will be the hottest sector this year, in line with our expectations of several bond refinancing and fresh LBOs,” analysts at Spread Research wrote in a note to clients Tuesday.[...]


La clause anti-hedge funds ne fait pas recette dans le high yield – L’Agefi

[...]«Les fondamentaux de crédit sont solides mais le prix d’émission ne reflète guère l’agressivité des clauses de la documentation ni le niveau élevé du levier financier net à l’émission, de 6,9 fois selon l’entreprise», soulignent les analystes de Spread Research.[...]


Le marché primaire du crédit au bord de l’indigestion – L’Agefi

[...]«Nous avons cette année une accélération des opérations de financement avec ‘dividend recap’, constate Benjamin Sabahi, responsable de l’analyse chez Spread Research. Nous nous y attendions vu la demande importante de papier de la part des investisseurs, y compris pour ce type d’opération»[...]


Rock Bottom Junk Yields Tempt Companies to Quit Private Credit – Bloomberg

[...]Home Shopping Europe will use the proceeds to repay debt worth just under 400 million euros and fund a 242 million-euro dividend, according to a report from Spread Research.[...]


Rock Bottom Junk Yields Tempt Companies to Quit Private Credit – Bloomberg

[...]Home Shopping Europe will use the proceeds to repay debt worth just under 400 million euros and fund a 242 million-euro dividend, according to a report from Spread Research. [...]


Codere tries again to shore up liquidity – IFR

[...]"I do not believe that Codere's capital structure is unsustainable," said Mateo Salcedo, credit analyst at Spread Research. "The problem is that the company's Ebitda has been highly impacted [by the pandemic], so it does not have enough money to make interest payments. However, I believe that creditors will accept the liquidity raise to allow the company to pay interest and avoid default – and then hope for circumstances to improve in the summer, which I believe they will, assuming the vaccination rollout goes as expected."[...]


German Luxury Retailer Douglas Signs $2.8 Billion Rescue Deal – Bloomberg

[...]“I would have expected a double-digit coupon given its junior ranking in the capital structure, but the market is hunting for yield,” said Solweig Pierronnet, senior credit analyst at Spread Research in Lyon, France [...]Despite the challenges it faces, Douglas persuaded investors to look beyond the pandemic to assess the company’s financials, and how much debt it can carry. The company’s adjusted earnings predictions are “very aggressive,” according to Pierronnet. “Investors usually don’t like to price the future, but that’s a reflection of the current environment,” Spread’s Pierronnet said.[...].


Euro High-Yield Credit Shrugs Off Slow Vaccine Rollout — Market Talk DJN

European high-yield corporate bonds have so far brushed off the slow vaccine rollout in Europe, says Spread Research, which has been exacerbated by some countries pausing the administration of the AstraZeneca jab on concerns over possible side effects. "Political nervousness related to the AstraZeneca vaccine being halted in most continental European countries is likely to delay the bloc's economic recovery," the independent credit research firm says. However, the euro high-yield credit markets have been broadly insensitive to this," with spreads neither widening or tightening, it says. The Euro high-yield market has remained stuck with flattish spreads at 368 basis points versus the benchmark government debt and zero returns, leaving the year-to-date total return at 1.6%, it says.


Europe’s Debt Markets Boom With Deals Across Risk Spectrum Range – Bloomberg

[...]Despite overwhelming demand for new transactions as investors clamor for yield, CGG’s deal also showed how investors were able to maintain discipline on pricing, according to analysts at Spread Research. “The deal demonstrated that investors have maintained pricing power in pricing a troubled oil and gas company, as the yield offered was much higher than market indexes for comparable ratings,” the analysts said.[...]