April 5, 2017

Valens Credit Weekly Insights for April 5, 2017


Each week, the Valens Credit team highlights our most interesting insights from across our tools and our analysis. This week’s interesting insights include:

Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
AVP, BLDR, CYH, HOV, NAV

vcwi 1 2017 04 05

Most Compelling Credit Rating Dislocations
ATW, BLDR, EXPE, GM, R, TWTR, UIS, VRX, X, YRCW

vcwi 2 2017 04 05

Most Compelling CDS Market Mispricings
AKS, AVP, CHK, HOV, JCP, MNI, PKD, UIS, VRX, X

vcwi 3 2017 04 05

Most Compelling Bond Market Mispricings
ATW, AVP, CHK, CYH, CVI, FTR, MDR, NAV, PKD, X

vcwi 4 2017 04 05

Highlighted Top Ideas
CVI – CVR Energy, Inc.
HUN – Huntsman Corporation
RIG – Transocean Ltd.

Other Recent Analyses
Materials
MLM – Martin Marietta Materials, Inc.
WRK – WestRock Company

Quantitative Credit Outlier Report Review
VRX  and X top our quantitative outlier report this week.

Aggregate Credit Market and Credit Fundamental Review
IG markets are currently fairly valued, as are HY markets. However, even after XO CDS has normalized in the last several months, it remains substantially above XO iCDS levels. This indicates that the XO market is overstating credit risk.

Click here to view the report in its entirety.

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