EU BASIC INDUSTRIES: SIG Group: Profit Warning x2
Sep-18 11:50
(SIGCBL; Baa3/BBB-/NR)
- SIGCBL 3.75 30 is currently quoted 16bp wider following this morning’s profit warning.
- As we noted, the dividend cut cushions any leverage impact. Nonetheless, tougher operating conditions and one-offs are a slight negative.
Peers are also experiencing tough market conditions as International Paper showed recently. We see management’s commitment to reducing debt as supportive. We see potential for the name to trade closer to AMCR and STERV once it settles down.
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US TSYS: Early SOFR/Treasury Option Roundup: Sep'25 SOFR Call Flys
Aug-19 11:49
SOFR and Treasury options a little more paired overnight, leaning toward SOFR calls with continued buying in Sep call fly. Projected rate cut pricing close to steady vs. late Monday (*) levels: Sep'25 steady at -20.9bp, Oct'25 at -34.1bp (-33.6bp), Dec'25 at -53.5bp (-52.9bp), Jan'26 steady at -64.1bp.
- SOFR Options:
- 6,600 SFRX5 96.12/96.25/96.50 call trees ref 96.205
- 2,000 2QZ5 96.12/96.31/96.56 2x3x1 put flys
- 5,000 0QU5 96.50/96.68 put spds ref 96.795
- 3,500 SFRX5 96.12/96.25/96.50 broken call trees ref 96.195
- 2,000 SFRZ5 95.87/96.00 put spds
- 10,000 SFRU5 96.00/96.12 1x2 call spds
- 17,000 SFRU5 96.00/96.12/96.25 call flys ref 95.895 (adds to some +60k traded through Mon at .75)
- (Note: Large late Monday buying in Oct'25 96.50 calls, volume 180,197 saw open interest climb +95,227 to 226,924)
- Treasury Options: (reminder Sep options expire Friday)
- over 10,200 TYU5 112.5 calls, 2 last
- over 7,800 TYU5 113 calls, 1 last
- over 9,000 TYV5 111 puts, 31 last ref 111-19
- 4,700 TYU5 113 calls, 1 ref 111-19
- 3,900 TUV5 103.75/104.5 strangles ref 104-01.38
- 1,500 TYU5 111.5/111.75 2x3 call spds ref 111-16.5
- 1,250 TUV5 103.5 puts ref 104-01.75
- 1,750 TUV5 103.75 puts ref 104-01.88
US: Bessent Flags Investment Services Contribution to PPI
Aug-19 11:48
"BESSENT: BIG COMPONENT OF THIS MONTH'S PPI NUMBERS WAS INVESTMENT SERVICES, WHICH MEANS MARKET WENT UP A LOT" - Reuters
- Following the last PPI release, we wrote: "Our proxy for core PCE contributions from typically important PPI categories sees them adding 0.12pps to M/M core PCE in July after 0.03pps in June (hardly revised from 0.02pp prior).
- It's dominated by portfolio management & investment advice adding 0.10pps, on the back of a 5.4% M/M increase after a near unrevised 1.94%. M/M."
OPTIONS: Larger FX Option Pipeline
Aug-19 11:33
- EUR/USD: Aug20 $1.1660-75(E1.3bln); Aug21 $1.1600(E1.3bln), $1.1700(E1.5bln), $1.1750(E1.9bln), $1.1800(E2.9bln)
- USD/JPY: Aug20 Y148.00-10($1.3bln); Aug21 Y145.95-00($1.2bln), Y146.70-80($1.7bln); Aug22 Y147.90($1.4bln)
- AUD/USD: Aug21 $0.6590-00(A$1.8bln)
