MNI EU Credit Weekly: Deal Inferno

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Jun-26 15:12By: Donal Golden and 5 more...
EU UtilitiesEU TransportationEU TechnologyEU Real Estate+ 11

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Executive Summary: 

  • Cash spreads were marginally weaker for a second consecutive week. Idiosyncratic events are rising, with significant M&A news on at least nine issuers.
  • In macro, yields fell in tandem with lower oil prices as disruption in the Middle East continued to ease. US PCE data was also soft.
  • Fund flows decelerated for credit while equity outflows continued, with the US also seeing withdrawals.
  • EUR IG supply slowed to under €12bn. Books were weaker on an aggregate basis with NICs marginally wider, mostly driven by NTT’s multi-trance deal.