Spread Research in the news


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.[...]


Hertz thrashes out euro bond restructuring – Refinitiv

[...]"I see the treatment that investors are getting now and don't think it's bad for them," said Mateo Salcedo, credit analyst at Spread Research. "Hertz before the crisis was highly leveraged. Their recovery prospects were good - because of their assets - but when the crisis came they were not in a good position to face it. This restructuring programme will allow Hertz to return with a leaner structure. Before, they had a huge amount of debt but now they are looking to repay the fleet debt. Post-restructuring, the bondholders will have 70% of cash recovery and the new bonds, which are secured."[...]


Les émetteurs « high yield » se ruent sur le marché – Market Blog – L’Agefi

[...]"Le marché primaire HY ressemble de plus en plus au marché primaire investment grade (IG) pendant la période 2010-2015, lorsque certains investisseurs achetaient systématiquement les nouvelles émissions car tout était en hausse", note Benjamin Sabahi, responsable de la recherche chez SpreadResearch.[...]


Europe Debt Risk Falls as Investors Clamor for Higher Yields – Bloomberg

[...]“The pricing of the new Kloeckner Pentaplast notes says a lot about investors’ appetite for fresh paper and risks,” Benjamin Sabahi, head of research at Spread Research in Lyon, France, wrote in a note to clients on Friday.[...]


Biogroup Inaugural Bond 9x Oversubscribed, Spread Research Says – Bloomberg

Biogroup’s bond sale attracted more than twice as much interest as the average European HY deal in 2019 and 2020, according to a report by the independent credit research company [...]


Les émissions de dette high yield vont rester soutenues – L’Agefi

[...]Benjamin Sabahi, responsable de la recherche crédit chez Spread Research [...] prévoit 126 milliards d’euros d’émissions bruts (86 milliards nets) [...]


Investors to Extend Hunt for Yield in Riskier Corporate Debt – Dow Jones

- Investors are likely to continue to scour riskier euro-denominated corporate bond markets in an effort to rack up positive returns within a low-yield environment, says Spread Research [...]


European High-Yield Corporate Debt Likely to Continue to Price Out Default Risk – Dow Jones

Despite a large portion of default risk already being priced out from euro-denominated high-yield corporate debt, spreads will continue to narrow throughout this year, Spread Research says. "We expect the overall euro high-yield market to post a total return between 3.5% and 4% in 2021," implying 60-75 basis points of tightening in spreads, the independent credit-rating firm says [...]


LEVFIN SNAPSHOT: Junk Credit Risk Reaches Highest Since November – Bloomberg

[...]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[...]