Credit and Market Mispricings
Other Recent Analyses
LB – L Brands, Inc.
BLDR – Builders FirstSource, Inc.
Quantitative Credit Outlier Report Review
CYH tops our quantitative outlier report this week.
Aggregate Credit Market and Credit Fundamental Review
IG markets are currently fairly valued. Recently HY markets have also moved to fairly valued levels, with iCDS converging towards CDS levels. However, the XO market appears mispriced. XO CDS appears to be overstating credit risk, with CDS levels not confirmed by iCDS. Overall, cost of borrowing have been rising thanks to improving economic activity and the rising risk free rate