IFR International - 03.11.2018

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ASûANû!ûRATEDûENTITY ûBUTûTHISûISûAû53BN
BNûDEBTûTHATûNEEDSûTOûCOMEûTOûMARKET vû
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JP Morgan and Goldman Sachs are providing
Aû53BNû
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ACQUISITION ûWHICHûISûEXPECTEDûTOûBEûTAKENû
out with bonds.
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Treasuries plus 125bp following the
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what is to be expected in later stages of the
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combining with dissimilar businesses in
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CLOUDûSPACE vûHEûSAID

MOODY’S SAYS ALLERGAN’S DEBT
BUYBACK A CREDIT POSITIVE

Drugmaker ALLERGAN said on an earnings call
4UESDAYûTHATûITûHADûREDUCEDûDEBTûINûTHEû
THIRDûQUARTERûANDûSIGNALLEDûITûMAYûBEû
looking to come to the bond market during
THEûFOURTHûQUARTER
-OODYS ûWHICHûRATESû!LLERGANûATû"AA û
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positive.
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issuer and part of a worrisome half of the
53TRNû53ûCORPORATEûBONDûMARKETûTHATûISû
NOWûRATEDûNEARûJUNK

The segment has come on the radar for

potential downgrades as companies fall

short on their debt reduction plans as the

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at leverage.

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ratings.

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earnings.

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executing as we speak as a normal part of

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Nicholson.

h!SûSUCHûWEûEXPECTûTOûCONDUCTûONEû

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CONDITIONSv

!CTAVISûHELPEDûlNANCEûITSû53BNû

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EQUITYûRAISEûTHATûHELPEDûTHEûCOMPANYû

MAINTAINûINVESTMENT

GRADEûRATINGS

GE BONDS TRADE WIDER ON NEWS OF

RESTRUCTURE

GENERAL ELECTRIC slid further down the credit

SPECTRUMûWITHûAûTWO

NOTCHûDOWNGRADEûFROMû

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course of the month.

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"""ûRATING

Fitch put GE on negative watch earlier in

the month.

GE bonds traded wider on the heels of the

DOWNGRADEûANDûITSûTHIRD

QUARTERûEARNINGSû

CALLûINûWHICHûNEWûCHIEFûEXECUTIVEû,ARRYû

Culp announced plans to restructure the

struggling power unit. Even proposals to

REDUCEûITSûQUARTERLYûDIVIDENDSûHAVEûNOTû

STOPPEDûTHEûSPREAD

WIDENING

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REGULATORYûMATTERSûINCLUDINGûTHEû53û3ECURITIESû

and Exchange Commission and Department of

*USTICEûEXPANDINGûINVESTIGATIONSûTOûINCLUDEûAû

US$22bn writedown of goodwill from GE’s

power division.

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reported.

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Culp noted during the call that there are

NOûPLANSûTOûRAISEûEQUITYûCAPITALû2EUTERSû

reported.

GM BRINGS BOND ON BACK OF

POSITIVE RESULTS

GENERAL MOTORS posted better than expected

PROlTSûONû7EDNESDAYûPROMPTINGû

TIGHTENINGûACROSSûTHEû53ûAUTOMAKERSûCURVEû

as well as new debt issuance from its captive

lNANCEûARMûGM FINANCIAL.

4HEûlNANCINGûARMû"AA""""""ûSTUCKû

TOûTHEûSHORTûENDûOFûTHEûCURVEûCOMINGûWITHûAû

53BNûTHREE

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IPTs on the back of a US$1.9bn order book.

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a nice surprise to a market that had forecast

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RUNWAY

h7EûCONTINUEûTOûVIEWûTHEûCOMPANYû

through the lens of its positioning relative

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CreditSights said.

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53BNûCOMPAREDûWITHûAûLOSSûLASTûYEARûOFû

53BNûACCORDINGûTOû2EUTERSûWHILEû

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noted that GM Financial would initiate a

53MûDIVIDENDûPAYMENTûTOûTHEûPARENTû

COMPANYûINûTHEûFOURTHûQUARTERûAHEADûOFûTHEû

ûTARGETûACCORDINGûTOûTHEûEARNINGSû

report.

BONDS CORPORATES

ALL INVESTMENT-GRADE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)

1 BNP Paribas 216 53,890.62 7.1
2 HSBC 236 51,166.69 6.7
3 SG 196 49,907.47 6.6
4 JP Morgan 164 46,122.73 6.1
5 Credit Agricole 184 44,460.07 5.9
6 Deutsche Bank 181 41,582.04 5.5
7 Barclays 134 40,496.99 5.3
8 UniCredit 171 38,782.52 5.1
9 Citigroup 128 32,619.15 4.3
10 Goldman Sachs 92 32,396.34 4.3
Total 1,077 758,951.63
Excluding ABS/MBS, equity-related debt.
Source: Refinitiv SDC code: N9

ALL CORPORATE BONDS IN STERLING

BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share

bank or group issues £(m) (%)

1 HSBC 16 1,961.64 14.3

2 Barclays 15 1,711.77 12.4

3 RBC 9 1,354.74 9.9

4 Lloyds Bank 13 1,141.78 8.3

5 NatWest Markets 12 955.46 6.9

6 BNP Paribas 11 766.28 5.6

7 Credit Suisse 7 661.72 4.8

8 Citigroup 6 573.55 4.2

9 Morgan Stanley 4 538.57 3.9

10 Deutsche Bank 5 482.61 3.5

Total 46 13,750.40

Source: Refinitiv SDC code: N8a