July 6, 2016

Valens Credit Weekly Insights for July 6, 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

c1

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

c2

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

c3

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

c4

Highlighted Top Ideas
BZH – Beazer Homes USA, Inc.
HUN – Huntsman Corporation
SVU – SUPERVALU INC.

Other Recent Analyses
Healthcare
LH – Laboratory Corporation of America Holdings
Telecommunication Services
LVLT – Level 3 Communications, Inc.

Quantitative Credit Outlier Report Review
CHK, SHLD, and NAV 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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