US IG CREDIT SUPPLY: LKQ Initiates Strategic Review to Maximize Shareholder Value

Jan-26 14:09

LKQ Initiates Strategic Review to Maximize Shareholder Value
(LKQ; Baa3/BBB-/BBB-pos)
 

• Company has initiated a comprehensive review of strategic alternatives.
• Could include potential sale of entire company.
• Last Fall, Ananym Capital had urged LKQ to sell its European Business.
• LKQ is continuing to explore sale of Specialty Segment which was initially announced back in December. Specialty is about 13% of total revenues and about 9% of total EBITDA. Proceeds from this were expected to shore up the balance sheet but also return monies to shareholders.
• LKQ shares are down 12.5% LTM.

Historical bullets

US TSYS: Curves Twist Steeper, Quiet Return from Christmas Holiday

Dec-26 2025 20:17
  • Treasuries look to finish mixed Friday, curves twisting steeper with 2s-10s holding modestly higher vs. weaker Bonds after the bell.
  • Currently, the TYH6 contract trades +2.5 at 112-19 vs. 112-23 early session high, on light post Christmas holiday volume of just over 650,000. 10Y yld near steady at 4.1336%. Key short-term resistance into 112-31, the Dec 18 high.
  • Projected rate cut pricing gained vs. late Wednesday levels (*): Jan'26 at -5bp (-3.3bp), Mar'26 at -15.2bp (-12.3bp), Apr'26 at -21bp (-18.1bp), Jun'26 at -35.2bp (-31.1bp).
  • US$ index near midrange after bouncing off midmorning lows, Bbg index BBDXY +0.21 at 1200.86
  • Mining shares continued to buoy the Materials sector after Gold climbing to new record highs early Friday (4,549.92), trading desks citing an uptick in geopolitical tensions after Pres Trump launched attacks on Isis elements in Nigeria.
  • Look Ahead: Monday data sees Pending Home Sales MoM (1000ET), Dallas Fed Mfg Activity (1030). COMC minutes for the December meeting to be released at 1400ET Tuesday.

US STOCKS: Late Equities Roundup: Miners Outperform as Gold Hits Record High

Dec-26 2025 19:58
  • Stocks hold near steady (SPX Eminis & Nasdaq) to weaker for the DJIA late Friday. Currently, the DJIA trades down 81.36 points (-0.17%) at 48652.31, S&P E-Mini Futures down 4.5 points (-0.06%) at 6978.5, Nasdaq up 16.4 points (0.1%) at 23629.91.
  • Materials, Information Technology and Health Care sector shares led advances in late trade. Miners continued to buoy the Materials sector after Gold climbing to new record highs early Friday (4,549.92), trading desks citing an uptick in geopolitical tensions after Pres Trump launched attacks on Isis elements in Nigeria.
    • Freeport-McMoRan +1.77%, Smurfit WestRock +1.14%, Newmont +0.78% and LyondellBasell Industries +0.72%.
    • NVIDIA +1.88%, Crowdstrike Holdings +0.97%, Lam Research +0.94% and Dell Technologies +0.85%.
    • Elevance Health +1.21%, Viatris +0.78%, UnitedHealth Group +0.71% and Baxter International +0.65%.
  • Conversely, Energy sector and Utilities/Industrials shares led declines in the second half:
    • Devon Energy -2.04%, APA Corp -1.64%, Diamondback Energy -1.23% and Occidental Petroleum -1.20%.
    • Edison International -1.31%, Constellation Energy -1.29%, American Water Works -0.69% and Alliant Energy -0.61%.
    • Huntington Ingalls Industries -1.18%, General Dynamics -1.08%, Axon Enterprise -1.07% and Northrop Grumman -1.06%.

US TSY OPTIONS: Apr'26 10Y Vol Sale

Dec-26 2025 19:26
  • -4,500 TYJ6 112/113 strangles, 134