June 14, 2017

Valens Credit Weekly Insights for June 14, 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
AVP, BLDR, CYH, HOV, NAV

Most Compelling Credit Rating Dislocations
BLDR, EXPE, GM, JCP, NAV, R, UIS, VRX, X, YRCW

Most Compelling CDS Market Mispricings
AKS, AVP, CHK, FTR, JCP, MNI, UIS, RIG, VRX, X

Most Compelling Bond Market Mispricings
AMD, ATW, AVP, CHK, CYH, FTR, GME, MDR, PKD, X

Highlighted Top Ideas
AMD – Advanced Micro Devices, Inc.
HK – Halcón Resources Corporation
NFX – Newfield Exploration Company

Other Recent Analyses
Consumer Discretionary
GT – The Goodyear Tire & Rubber Company
Consumer Staples
CVS – CVS Health Corporation

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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