Valens Credit Weekly Insights for April 19, 2017
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
AVP, BLDR, CYH, HOV, NAV
Most Compelling Credit Rating Dislocations
ATW, BLDR, EXPE, GM, R, TWTR, UIS, VRX, X, YRCW
Most Compelling CDS Market Mispricings
AKS, AVP, CHK, HOV, JCP, MNI, PKD, UIS, VRX, X
Most Compelling Bond Market Mispricings
ATW, AVP, CHK, CYH, CVI, FTR, MDR, NAV, PKD, X
Highlighted Top Ideas
BZH – Beazer Homes USA, Inc.
OC – Owens Corning
R – Ryder System, Inc.
Quantitative Credit Outlier Report Review
VRX 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.
