10 June 2020 - Early thoughts

Some of my early morning thoughts:->

• EUR HY issuance lagging US HY issuance - WSJ comments
• Bit of softening in US IG Corp, Citi Credit Trading reporting that spreads went out right about where it opened +5-15bp in banks, 5-10bp wider in industrials, +5bp in Reits.
• VW to refinance low reset Corporate Hybrid - VW 3.75% perp in EUR by issuing new set of Hybrids
• US Elections – As we approach November, more and more press noise around impact of possible Biden presidency…
• Morgan Stanley – CEO says he may reinstate divis and buybacks if situation improves over next few months…!
• Nationwide to issue a new AT1 (IPT of 6.25% area) and tap its CCDS issue at 161 area – I think if NWIDE comes with coupon of 6%+ it will fly. IG rated, solid capital ratios, Sterling guys will eat it up.
• Unicredit redeeming high coupon perp (9.375%)
• Gundlach webcast yesterday – link in morning wrap document
• Attached – impact of COVID19 on African American job market (WSJ article)