May 31, 2018
Credit and Market Mispricings
Most Compelling Credit v Equity Market Mispricings
AVP, CYH, MNI, NAV, UIS
Most Compelling Credit Rating Dislocations
AMAG, AMD, JCP, MNI, MTW,PKD, R, UIS, X, YRCW
Most Compelling CDS Market Mispricings
AVP, CHK, CYH, DNR, ENDP, HTZ, JCP, MNI, PKD, SVU
Most Compelling Bond Market Mispricings
AER, AMD, AVP, BZH, CHK, CVI, ENDP, PKD, UIS, VRX
Highlighted Top Ideas
HTZ – Hertz Global Holdings, Inc.
LEN – Lennar Corporation
MTW – The Manitowoc Company, Inc.
Other Recent Analyses
FND – Floor & Decor Holdings, Inc.
KBH– KB Home
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
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