EM LATAM CREDIT: Mexico's El Puerto de Liverpool (LIVEPL; NR/BBB/BBB+) Earnings
“Liverpool 4Q Net Income Beats Estimates” – BBG
Positive for spreads
• Mexican retailer Liverpool delivered better than expected results. The company’s recent 12-year note priced at T+205bps has widened out to T+221bps as the bonds failed to keep up with the 40 bps US Treasury rally of the past two weeks. Bonds are also correlated with the Mexico sovereign which has been buffeted in past weeks with US tariff threats.
• 4Q Net Income rose 11% while for the year it was up 9%. Ebitda margin was slightly weaker but still a healthy 19.7% while Ebitda grew 5.3% y/y. Same store sales at the Liverpool division were up 7.3% q/q while Suburbia sales rose 5.2%.
• Net debt / Ebitda was -.04x. The company announced on December 23, 2024 that it was participating jointly in a buyout of US retailer Nordstroms so performance for bonds will eventually depend on if that deal closes and how it impacts future results.
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EUR: EURJPY tests this Week's low
- The EURJPY is making a second attempt at breaking 161.55, this was Monday's low.
- The Yen remains the best performer in G10 against the EUR and looking at the chart, a clear break through that level would only see the next support at 160.96.
US TSY OPTIONS: Large 10Y Midcurve Call Spread
- Over +61,000 wk5 10Y 109.5/110 call spds on screen, 7 ref 109-07, expires this Friday. Open interest 43,727 and 23,378 in the two strikes respectively.
US TSY FUTURES: BLOCK: March'25 5Y/10Y Steepener
Steepener Block posted at 0737:00ET
- +5,000 FVH5 106-18, post-time offer vs.
- -3,000 TYH5 109-04, through 109-04.5 post time bid
