May 10, 2017

Valens Credit Weekly Insights for May 10, 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 05 10

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

vcwi 2 2017 05 10

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

vcwi 3 2017 05 10

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

vcwi 4 2017 05 10

Highlighted Top Ideas
AVP – Avon Products, Inc.
LH – Laboratory Corporation of America Holdings
TIME – Time Inc.

Other Recent Analyses
Healthcare
UHS – Universal Corporation
THC – Tenet Healthcare Corp.
Information Technology
AMKR – Amkor Technology, Inc.

Quantitative Credit Outlier Report Review
CHK and VRX 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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