April 4, 2019

Valens Credit Weekly Insights for April 3, 2019


Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
AVP, CYH, DISH, HTZ, UIS

Most Compelling Credit Rating Dislocations
AMD, BLDR, BZH, KBH, LEN, MTW, NAV, RIG, X, YRCW

Most Compelling CDS Market Mispricings
AVP, CHK, CYH, DF, DISH, DNR, ESV, HTZ, JCP, RAD  

Most Compelling Bond Market Mispricings 
AVP, CHK, CVI, CYH, DBD, DF, DISH, DNR, JCP, R  

Highlighted Top Ideas
AMAG– AMAG Pharmaceuticals, Inc.
DBD – Diebold Nixdorf, Incorporated
HCA – HCA Healthcare, Inc.


Other Recent Analyses 
Consumer Discretionary
ADNT – Adient plc
Health Care
RYI – Ryerson Holding Corporation

Quantitative Credit Outlier Report Review
JCP tops our quantitative outlier report this week.


Aggregate Credit Market and Credit Fundamental Review
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.

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