My daily digest
Today was another day of poor flows and an increasing lack of liquidity ; clients are in risk off or stand by mood as much… this year was a tough one for credit and for high yield in particular, so clients are not willing to take more risk than necessary in december; what was done is done, so the new trend now is: “wait and see”, by hoping that 2019 will bring some recovery.
In terms of names I’ve been looking at, there are:
- Tereos: Company delivered weak numbers once more last week, and on the back of that, both bonds 20s and 23s have been trading to their lowest levels , in the last 3 days they recovered a little and today the market was ~95.50 – 96
- Takko: Company is due to report 3Q2018/2019 on Wednesday and they’re expected to be bad; nothing surprising unfortunatley in retail sector, that has been performing so bad this year , and today the announce of a profit warning by Asos added fuel to the fire... 67.50 – 68.50 was the market
- Moby: Company delivered quite bad results last week and bond extended its decline to record low… as said last week, I’ve never loved this bond…
- Astaldi: no flow on that, but some headlines; Company announced that they applied for €75mm loan needed to cover urgent financial requirement for business Operations, “This loan will be underwritten in line with the economic conditions and according to the terms and condition outlined in the binding offer received from a subsidiary of Fortress Investment Group on behalf of own managed funds on 13 December 2018.”
- Salini Impregilo has been downgraded to BB/watch neg. From BB/Stable by S&P