October 26, 2017
Credit and Market Mispricings
Most Compelling Credit v Equity Market Mispricings
AVP, BLDR, CYH, HOV, NAV
Most Compelling Credit Rating Dislocations
AMD, BLDR, CHK, DNR, EXPE, JCP, R, UIS, X, YRCW
Most Compelling CDS Market Mispricings
AVP, CHK, CYH, ESV, FTR, JCP, MNI, PKD, UIS, SVU
Most Compelling Bond Market Mispricings
AMD, ATW, BLDR, AVP, CHK, CYH, FTR, MDR, PKD, SVU
Highlighted Top Ideas
AKS – AK Steel Holding Corporation
BLDR – Builders FirstSource, Inc.
MDR – McDermott International, Inc.
Other Recent Analyses
AXL – American Axle & Manufacturing Holdings, Inc.
MTOR – Meritor, Inc.
Quantitative Credit Outlier Report Review
CYH tops 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.