May 3, 2017

Valens Credit Weekly Insights for May 3, 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 03

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

vcwi 2 2017 05 03

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

vcwi 3 2017 05 03

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

vcwi 4 2017 05 03

Highlighted Top Ideas
DF – Dean Foods Company
ESV – Ensco plc
HTZ – Hertz Global Holdings, Inc.

Other Recent Analyses
Consumer Staples
UVV – Universal Corporation

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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