May 24, 2017

Valens Credit Weekly Insights for May 24, 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, R, TWTR, 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, MDR, NAV, PKD, X

Highlighted Top Ideas
BBY – Best Buy Co., Inc.
KBH – KB Home
SPLS – Staples, Inc.

Other Recent Analyses
Consumer Discretionary
LEN – Lennar Corporation
Materials
RPM – RPM International 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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