July 5, 2017

Valens Credit Weekly Insights for July 5, 2017

Each week, the Valens Credit team highlights our most interesting insights from across our tools and our analysis. This week’s interesting insights include:

Credit and Market Mispricings

Most Compelling Credit v Equity Market Mispricings

Most Compelling Credit Rating Dislocations

Most Compelling CDS Market Mispricings

Most Compelling Bond Market Mispricings

Highlighted Top Ideas
AKS – AK Steel Holding Corporation
CNX – CONSOL Energy Inc.
DLX – Deluxe Corp.

Other Recent Analyses
Consumer Discretionary
AN – AutoNation, Inc.
AXL – American Axle & Manufacturing Holdings, Inc.

Quantitative Credit Outlier Report Review
CHK and VRX top our quantitative outlier report this week.

Aggregate Credit Market and Credit Fundamental Review
IG markets are currently fairly valued, as are HY markets. However, even after XO CDS has normalized in the last several months, it remains substantially above XO iCDS levels. This indicates that the XO market is overstating credit risk.

Click here to view the report in its entirety.

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