June 20, 2019

Valens Credit Weekly Insights for June 19, 2019


Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings
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Most Compelling Credit Rating Dislocations
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Most Compelling CDS Market Mispricings
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Most Compelling Bond Market Mispricings
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Highlighted Top Ideas
EXPE – Expedia Group, Inc.
MTW – The Manitowoc Company, Inc.
X – United States Steel Corporation

Quantitative Credit Outlier Report Review
TCG:GBR tops our quantitative outlier report this week.


Aggregate Credit Market and Credit Fundamental Review
IG and XO markets are currently fairly valued. HY markets have seen CDS move wider than iCDS again recently. 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 mostly tightened. Lower cost for borrowing is favorable for refinancing and borrowing for new credit creation.