Weekly Credit Update - 10 November, 2015

Published 11/10/2015, 02:03 AM
Updated 05/14/2017, 06:45 AM

Following some weeks with 'risk-on' mode and sign of inflows, the European credit indices took a breather and closed only slightly tighter over the week.

In S&P's newly published European Corporate Credit Outlook Q4 15 it is highlighted that defaults in Europe are proving to be a rare occurrence in 2015. Taking only rated nonfinancial high-yield corporates into account the default rate ticked up to 1.9% from 1.8% at the end of March 2015. This remains well below the long-term annual average of 3.2% since the start of this study in 2003. S&P notes that low interest costs and longer debt maturities act to reduce near-term default risk.

Following recent spread widening in Securitas bonds on the back of the Diebold acquisition, we have published a trade idea on the name.

To Read the Entire Report Please Click on the pdf File Below

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