October 5, 2016

Valens Credit Weekly Insights for October 5, 2016


Each week the Valens Credit team highlights our most interesting insights from across our tools and our analysis. This week interesting insights include:

Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
AN, CYH, NAV, SGMS, THC

a1

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

a2

Most Compelling CDS Market Mispricings
AVP, AMD, CHK, HNT, NAV, PKD, RIG, SHLD, UIS, X

a3

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

a4

Highlighted Top Ideas
NYT – The New York Times Company
RCII – Rent-A-Center, Inc.
TSX:VRX – Valeant Pharmaceuticals International, Inc.

Other Recent Analyses
Consumer Discretionary
TLRD – Tailored Brands, Inc.
Materials
OC – Owens Corning

Quantitative Credit Outlier Report Review
X, CHK, and SHLD 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.