September 28, 2017
Credit and Market Mispricings
Most Compelling Credit v Equity Market Mispricings
AVP, BLDR, CYH, HOV, NAV
Most Compelling Credit Rating Dislocations
AMD, BLDR, CHK,DNR, EXPE, JCP, R, UIS, X, YRCW
Most Compelling CDS Market Mispricings
AVP, CHK, CYH, FTR, JCP, MNI, PKD,UIS, WIN, X
Most Compelling Bond Market Mispricings
AMD, ATW, AVP, CHK, CYH, FTR, MDR, PKD, SVU, X
Highlighted Top Ideas
CHK – Chesapeake Energy Corporation
RPM – RPM International Inc.
VRX – Valeant Pharmaceuticals International, Inc.
Other Recent Analyses
OC – Owens Corning
WRK – WestRock Company
Quantitative Credit Outlier Report Review
CHK tops 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.