November 2, 2016

Valens Credit Weekly Insights for November 2, 2016


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
AN, CYH, NAV, SGMS, THC

vcwi-1-2016-11-02

Most Compelling Credit Rating Dislocations
ATWBLDR, EXPE, GMR, TWTR, UIS, VRX, X, YRCW

vcwi-2-2016-11-02

Most Compelling CDS Market Mispricings
AKSAVP, CHK, CYH, HNTPKD, SHLD, UIS, VRX, X

vcwi-3-2016-11-02

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

vcwi-4-2016-11-02

Highlighted Top Ideas
CVS – CVS Health Corporation
PKD – Parker Drilling Co.
UNT – Unit Corporation

Other Recent Analyses
Consumer Staples
AVP – Avon Products Inc.
Materials
HUN – Huntsman Corporation

Quantitative Credit Outlier Report Review
AKS, SHLD, 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, 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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