July 13, 2016

Valens Credit Weekly Insights for July 13, 2016


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

Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
AN, CYH, NAV, SGMS, THC

a1

Most Compelling Credit Rating Dislocations
CCO, DAL, EXPE, GM, TSX:MEG, NYT, R, TWTR, VRX, YRCW

a2

Most Compelling CDS Market Mispricings
AVP, AMD, CHK, HNT, NAV, PKD, RIG, SHLD, UIS, X

a3

Most Compelling Bond Market Mispricings
AKS, AMD, ATW, CHK, MDR, TSX:MEG, NAV, RIG, SGMS, VRX

a4

Highlighted Top Ideas
OUTR – Outerwall Inc.
YRCW – YRC Worldwide Inc.

Other Recent Analyses
Energy
TSX:MEG – MEG Energy Corporation
Materials
UFS – Domtar Corporation

Quantitative Credit Outlier Report Review
CHK, NAV, 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, XO CDS has steadily moved higher in the last several months. This is not confirmed by XO iCDS, indicating that the XO market is overstating credit risk.

If you are interested in seeing any of the highlighted analyses, please contact the Valens team at valens@valens-securities.com

 

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