Credit and Market Mispricings
Most Compelling Credit v Equity Market Mispricings
AVP, CYH, MNI, NAV, UIS
Most Compelling Credit Rating Dislocations
AMD, BLDR, EXPE, JCP, MNI, PKD, R, UIS, X, YRCW
Most Compelling CDS Market Mispricings
AVP, BZH, CHK, CYH, DNR, JCP, MNI, PKD, SVU, YRCW
Most Compelling Bond Market Mispricings
AER, AMD, AVP, BLDR, CHK, CVI, ENDP, NFX, PKD, UIS
Highlighted Top Ideas
AN– AutoNation, Inc.
AVP – Avon Products, Inc.
UIS – Unisys Corporation
Other Recent Analyses
ENDP – Endo International plc
AMKR – Amkor Technology, 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. However, XO and HY markets appear mispriced in opposite directions. XO CDS appears to be overstating credit risk, with CDS levels not confirmed by iCDS. On the other hand, tight HY CDS spreads have not been confirmed by HY iCDS, signaling HY credit risk is being understated by the credit markets. Overall, cost of borrowing have been rising thanks to improving economic activity and the rising risk free rate