US HEALTHCARE: Baxter: Moody's Downgrades BAX to Baa3/Stable
Nov-13 16:56
(BAX; Baa3/BBB-/ NR)
#MNI #Healthcare
- Moody's downgraded Baxter to Baa3/Stable after a CWN was issued on November 4th. This was after weak 3Q25 earnings which showed continued pressure in areas such as Infusion Therapies & Technologies as well as Anesthesia & Injectables.
- Moody's noted that the rating reflects elevated leverage even after recent debt reduction efforts from the Vantive sale proceeds. BAX also said that their plan to de-leverage to 3.0x net debt/ebitda would be delayed from YE25 to YE26.
- Moody's calculates current gross debt/EBITDA of 5.2x at 3Q25 and expects gross leverage to decline towards 4.0x by FYE26. We note that S&P downgraded BAX to BBB- on November 7th with a Stable Outlook.
- Please see our note on 3Q25 earnings here: https://www.mnimarkets.com/articles/baxter-3q25-earnings-1761837102134
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FOREX: EUR Stages Late Rally on French Political Progress
Oct-14 16:54
- The EUR staged a late rally, putting EURUSD through to a new intraday high at the London close as French politics progressed quickly: some opposition parties appear to have conceded that they will not proceed with a no confidence vote - providing interim stability for parliament - while gaining further pledges from cabinet on pensions reform. While the rally looks firm, initial firm resistance at 1.1779, the Oct 1 high, is still some way away, leaving the medium-term bear trend intact for now.
- The USD traded mixed despite a strong start Tuesday. The USD Index faded quickly off any test of multi-month highs, as USTR's Greer confirmed that staff-level communications between US and Chinese representatives was underway. This left markets to factor out the frostier conditions between Beijing and Washington. Resultantly, risk proxies recovered, putting AUD clear of new lows, although well short of resistance.
- Meanwhile, equities traded mixed, with no visible support from the beginning of equity earnings season. Financials make up the bulk of reports this week, building up to 50% of the S&P 500 by market cap having reported by the end of the month.
- Australia's Westpac Leading Index, Chinese inflation for September and French final CPI are the data highlights Wednesday. Instead, the central bank speaker slate is likely of more interest to markets, and Wednesday is busy: Fed's Miran, Waller & Schmid, ECB's de Guindos, Rehn & Villeroy, BoE's Ramsden & Breeden and RBA's Hunter are all set to speak.
US TSY OPTIONS: BLOCK: Dec'25/Feb'26 10Y Ratio Call Spread
Oct-14 16:54
- 10,000 TYZ5 115 calls vs. 13,000 TYG6 115.5 calls, 15 net vs. 1,000 TYZ 113-07.5
OPTIONS: Downside Plays Pick Up As Rates Rally
Oct-14 16:52
Tuesday's Europe rates/bond options flow included:
- DUX5 107.20/107.40cs, bought for 5 in 3k
- DUX5 107.30/107.60cs, bought for 2.25 in 2k
- RXX5 128.50/128.00ps, bought for 4 in 4k
- RXX5 129.00/129.50cs, sold at 34 in 5k
- ERM6 98.25/98.37 call spread vs 97.93 puts paper paid 0 for the call spread on +4K
- SFIH6 96.40/96.50/96.60/96.70c condor, bought for 1.75 in 2k
- SFIH6 96.45/96.55cs vs 96.05p, bought the cs for 0.75 in 4k
- SFIH6 96.25/96.05/95.85p fly, bought for 5.25 in another 5.5k, 16.5k total
