EU BASIC INDUSTRIES: Week in Review
Mar-14 13:42
- Spreads outperformed slightly at 4.5bp wider this week.
- Verallia’s bid from BWGI was firmed up, helping lift bonds on increasing CoC chances.
- Reports emerged that BASF is progressing with its long-reported agrichemicals spinoff.
- Brenntag results were mostly as expected. The chemicals distributor expects moderate volume improvements this year.
- K+S results showed a beat for the fourth quarter, while the recovery is expected to the tepid.
- With its first issuance post upgrade to IG, SIG Group was a new name to many. We took comfort from its credit profile, with strong margins and reasonable leverage that is heading lower. It aims to be a repeat issuer and may benefit from increased recognition over time. The deal priced 8bp wide to our FV and traded 7bp tighter T+1.
- Somewhat surprisingly, Moody’s confirmed Amcor with stable outlook, despite an initial review for downgrade in reaction to the Berry Global merger. We welcomed the decision however, as we felt a downgrade would have been harsh.
- Westlake was moved to outlook positive by Moody’s, while it still looks wide in EUR.
Mondi issued an 8Y 5bp wide to our FV. Legrand priced its 10Y just inside. Air Liquide printed a 10Y Green in line with our FV.
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BUNDS: Falls 41 ticks post US CPI
Feb-12 13:42
- Bund has fully closed the gap down to 132.34, and extended as low as 132.19 following the beat in the US CPI, it fell a total of 41 ticks post Data.
- Looking at Technical, focus will be on the Yield and the 2.50%.
- Today, reference 132.26, this level equates to 131.99.
US TSY FUTURES: BLOCK: March'25 2Y Post-Data Buy
Feb-12 13:41
- +10,000 TUH5 102-18, buy through 102-17.62 post time offer at 0834:05, DV01 $370,000. The 2Y contract has since traded down to 102-16.75 last (-5.62).
US TSY OPTIONS: Large March'25 10Y Put Sale - Unwind
Feb-12 13:39
- -30,000 TYH5 109 puts from 43 to 45 post data, continued unwind of over 100k bought last couple weeks from 18-22. March options expire Feb 21.
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