Valens Credit Weekly Insights for March 14, 2018
Credit and Market Mispricings
Most Compelling Credit v Equity Market Mispricings
AVP, CYH, MNI, NAV, UIS
Most Compelling Credit Rating Dislocations
AMD, BLDR, CHK, EXPE, JCP, MNI, R, UIS, X, YRCW
Most Compelling CDS Market Mispricings
AMD, BZH, CHK, CYH, JCP, MNI, NFX, PKD, SVU, YRCW
Most Compelling Bond Market Mispricings
AKS, AMD, AVP, BLDR, CHK, CVI, FCX, JCP, PKD, UIS
Highlighted Top Ideas
RIG – Transocean Ltd.
FCX – Freeport-McMoRan Inc.
URI – United Rentals, Inc.
Other Recent Analyses
Materials
AKS – AK Steel Holding Corporation
Real Estate
CCI– Crown Castle International Corp.
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.