Highlighted Top Ideas BZH – Beazer Homes USA, Inc. DF – Dean Foods Company DNR – Denbury Resources Inc.
Aggregate Credit Market and Credit Fundamental Review JCP tops our quantitative outlier report this week.
IG markets are currently fairly valued. XO and HY markets have also moved to fairly valued levels, with CDS converging towards iCDS levels. Overall, cost of borrowing have reversed their trend higher through 2018 so far in 2019, as both the risk free rate and corporate spreads (CDS levels) have tightened. Lower cost for borrowing is favorable for refinancing and borrowing for new credit creation.