September 21, 2017

Valens Credit Weekly Insights for September 20, 2017


Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
AVP, BLDR, CYH, HOV, NAV

Most Compelling Credit Rating Dislocations
AMD, BLDR, DNR, EXPE, JCP, R, UIS, VRX, X, YRCW

Most Compelling CDS Market Mispricings
AVP, CHK, CYH, FTR, JCP, MNI, PKD,UIS, WIN, X

Most Compelling Bond Market Mispricings
AMD, ATW, AVP, CHK, CYH, FTR, MDR, PKD, SVU, X

Highlighted Top Ideas
FCX – Freeport-McMoRan Inc.
MLM – Martin Marietta Materials, Inc.
WU – The Western Union Company

Other Recent Analyses
Healthcare
AGN – Allergan plc

Quantitative Credit Outlier Report Review
CHK 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.

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