EU FINANCIALS: Jefferies : Share price move
(JEF; Baa2/BBB/BBB+)
- Jefferies share price fell 10% yesterday on a day when Zions took private credit driven provisions. - See below piece from our US colleagues.
- The EUR and USD bond remain slightly tighter than their worst levels, but are also c.+20-30bps MTD, depending on bond.
[MNI US Credit]
Zions, Western Alliance Shares Plunge on Losses Tied to Fraud -BBG
• Zions taking $50MM charge on a $60MM loan underwritten by subsidiary California Bank&Trust to investment funds tied to investor group led by Andrew Stupin, Zions cited bad collateral due to fraud / misrepresentation.
• Western Alliance was also a creditor to that investor group, via its $100MM loan, that it alleges was fraudulently presented as first-lien, per its lawsuit filed in August. This is unrelated to WAL’s previously disclosed exposure to First Brands.
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Historical bullets
GILTS: Opening calls
- Gilt calls, 91.45/91.50.
These DO NOT take the CPI into account, given that Sonia is a tick up, small upside risk, but should be close.
USDCAD TECHS: Strong Sell-Off Exposes Support
- RES 4: 1.4019 38.2% retracement of the Feb 3 - Jun 16 bear leg
- RES 3: 1.3925 High Aug 22 and the bull trigger
- RES 2: 1.3890 High Sep 11
- RES 1: 1.3803 20-day EMA
- PRICE: 1.3751 @ 07:56 BST Sep 17
- SUP 1: 1.3727 Low Aug 29 and a bear trigger
- SUP 2: 1.3709 61.8% retracement of the Jul 23 - Aug 22 bull cycle
- SUP 3: 1.3658 76.4% retracement of the Jul 23 - Aug 22 bull cycle
- SUP 4: 1.3637 Low Jul 25
A sharp sell-off in USDCAD this week has resulted in a break of the 20-and-50-day EMAs. This undermines a recent bullish theme and a continuation lower would expose key short-term support at 1.3727, the Aug 27 low. A break of this level would strengthen a bearish threat. For bulls, resistance levels to watch are; 1.3890, the Sep 11 high, and 1.3925, the Aug 22 high and bull trigger.
US TSY OPTIONS: TYX5 112.50 Puts Lifted
TYX5 112.50 puts paper paid 0-21 on 4K.
