May 31, 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
Most Compelling Credit Rating Dislocations
BLDR, EXPE, GM, JCP, NAV, R, UIS, VRX, X, YRCW
Most Compelling CDS Market Mispricings
AKS, AVP, CHK, FTR, JCP, MNI, UIS, RIG, VRX, X
Most Compelling Bond Market Mispricings
AMD, ATW, AVP, CHK, CYH, FTR, GME, MDR, PKD, X
Highlighted Top Ideas
NAV – Navistar International Corporation
URI – United Rentals, Inc.
TWTR – Twitter, Inc.
Other Recent Analyses
RCL – Royal Caribbean Cruises Ltd.
DAL – Delta Air Lines, 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.