Spread Research in the news
CVC-Owned Douglas’s Bonds See Record Gain as Profit Rises – Bloomberg
Bonds of Douglas GmbH, the German beauty retailer, reached the highest level since July 2018 after reporting an increase in earnings in the key Christmas shopping period (…). “This is further proof that the company’s fundamentals are improving, which has been happening for a few quarters now,” said Anthony Giret, an analyst at Spread Research (…)
Le marché high yield n’intègre pas le risque du coronavirus – L’Agefi
Le marché crédit euro se montre, pour l’heure, totalement immune à la crise du coronavirus. (…).«Les secteurs cycliques ont commencé à perdre du terrain mais seulement de façon modérée, à l’exception du transport dont le ‘spread’ s’est écarté de 140 pb depuis le 17 janvier», note Benjamin Sabahi, responsable de la recherche crédit chez Spread Research.(…)
Here’s What to Watch in European High-Yield Bonds This Week – Bloomberg
Bankers are expecting a quiet week for new issuance in Europe’s high-yield market as the earnings season rolls on and with U.S. financial markets shut on Monday.(…) Several European high-yield issuers have sizeable exposure to China but spreads have mostly remained unaffected, Spread Research’s Benjamin Sabahi wrote in a note on Friday.
Virus Onset in China’s ‘Motor City’ Darkens Auto Credit Outlook – Bloomberg
(Bloomberg) -- European junk-rated auto companies were just starting to show signs of a recovery after a prolonged downturn (…).The spread of debt linked to the automotive industry widened by around 50 basis points by mid-January but bounced back recently as expectations rose that the effects would be temporary, according to a report by credit analysis firm SpreadResearch. (…)
Le marché high yield en euros teste les investisseurs – L’Agefi
(…) De plus en plus d’émetteurs viennent aussi refinancer leurs dettes bancaires sur ce marché (HY). «Depuis octobre dernier, il est aussi compétitif que celui des loans», souligne Benjamin Sabahi qui reconnaît que cette tendance pourrait accroître le risque alors que le marché est entré dans une phase avancée du cycle (...)
In Europe’s High-Yield Market Even the Best is Below Average – Bloomberg
(…) The Banijay deal became the first this year to test investors’ threshold for riskier paper and highly leveraged borrowers, amid a glut of better rated issuers with well-known capital structures. “The market has not been tested for such aggressive M&A and complex deal in a while,” Joan Sehim, an analyst at Spread Research (...)
Travel, Shipping Junk Bonds Decline Amid Coronavirus Worries – Bloomberg
There’s “obvious” risk for airlines, shipping and traveling, Benjamin Sabahi, head of credit research at Spread Research said, although it’s “early at this stage to assess the impact”
Casino’s Weak Profit Raises Risks for Rallye’s Debt Outlook – Bloomberg
(Bloomberg) -- Rallye SA’s prospects to exit creditor protection suffered a blow after bondholders rejected its plan and French grocer Casino-Guichard Perrachon SA reported weaker- than-expected earnings (…) . A Paris court is set to rule on Rallye’s plan by the end of March. “Even if most bondholders object, it’s still up to the court to decide,” said Anthony Giret, an analyst at Spread Research in Lyon, France. “The alternative is liquidation, and bondholders would be even worse off in that situation.” (…)
European junk-bond New Year sales surge may herald rush to risk – Reuters News
LONDON, Jan 14 (Reuters) - The market for junk-rated European bonds started 2020 with the best sales in the first two weeks in at least a decade, and rising demand for high-yield assets is seen as opening the doors for riskier borrowers. Companies rated sub-investment grade -- or junk in market parlance -- have raised around 3 billion euros ($3.34 billion)since the start of the year. That's the highest level ever for this period and more than double what was sold by this time in 2019, according to Refinitiv IFR data dating back to 2011 (…) The junk surge should continue. Paris-based high-yield specialist Spread Research predicts issuance at around 110 billion euros in 2020, versus 75 billion euros or so last year.
Patrick Drahi a retourné les investisseurs – L’Agefi
Patrick Drahi a retourné les investisseurs Par Olivier Pinaud (L'Agefi) -- En un an, Altice Europe a totalement retourné les investisseurs. Alors que l’opérateur de télécoms avait dû payer en mai 2019 une prime de 800 points de base pour assurer son retour sur le marché obligataire, il a concédé un spread 2,5 fois inférieur, pour des obligations de maturité comparable, lors de l’émission réalisée en milieu de semaine (...) «Altice n’a plus de dette majeure à rembourser avant 2025, ce qui repousse tout risque de liquidité», souligne Jean-René Méduri, analyste crédit chez Spread Research. «Et en cas de besoin, le groupe aurait la capacité de réagir, par exemple en vendant Teads, qui n’est plus aujourd’hui considéré comme stratégique», ajoute-t-il.
OHL Bonds Surge on Positive Read-Across From Aldesa’s Buyout – Bloomberg
(Bloomberg) — Obrascon Huarte Lain SA’s notes rose sharply, extending a rally from last month, as the buyout of peer Aldesa by a Chinese firm fueled investors’ optimism for a capital injection (…) “Although the deal with the Amodio family, when and if it materializes, won’t be as transformative for OHL as the CRCC deal is for Aldesa, it will be positive for OHL,” Marc Pierron, a senior credit analyst at Spread Research, said in a phone interview.
Risk of Default Haunts European Companies Going into 2020 – Bloomberg
Risk of Default Haunts European Companies Going into 2020 Ratings firms forecast rise in missed payments next year Junk yields near two-year low suggest investors are complacent By Fabian Graber European companies, from retailers to advertisers, face more ratings cuts and higher odds of default next year as the tide begins to turn for the lowest-ranked borrowers(…). “There will be opportunistic investors who want to buy paper even if it’s on the riskier side,” said Benjamin Sabahi, chief analyst at Spread Research in Lyon. “Some credits in danger of default could be saved by that.”