October 19, 2016

Valens Credit Weekly Insights for October 19, 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

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

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

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

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Highlighted Top Ideas
LH – Laboratory Corporation of America Holdings
NFX – Newfield Exploration Company
SCI – Service Corporation International

Other Recent Analyses
Healthcare
THC – Tenet Healthcare Corporation
Industrials
DLX – Deluxe Corporation

Quantitative Credit Outlier Report Review
SHLD, X, and AKS 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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