Hints and tips:
...S&P has rated the bonds single-B minus, among the riskiest ratings it assigns....
...Lawyers arrived in groups, trading gossip in hushed murmurs, occasionally breaking into laughter....
...Indian fintech raise $60mn to expand loans-as-a-service Lentra, a Mumbai-based start-up, has completed a Series B led by Bessemer Venture Partners and Susquehanna International Group, writes Jagmeet Singh...
...That will drag down the overall issuer rating to a B level. Analysts at the research group Covenant Review also highlighted some weak investor protections in the deal documents....
...“It is something they would never have been able to do before,” said Lise Buyer, who founded Class V Group almost 15 years ago to advise companies looking to go public, after spending two decades as an investor...
...In August 2007, President Nursultan Nazarbayev of Kazakhstan was joined by his Chinese counterpart, Hu Jintao, in the Kazakh capital Astana to announce new pipelines that would carry gas from central Asia...
...B relative of small caps relative to large caps is well below its 2009 low and the yield relative is unusually high – P/Es are meaningless in the current environment with loss-making small caps back to peak...
...Reducing inventory is a major priority for the group; In the last 4 years, group inventory is up 27% to £2.5bn....
...PH forecasts that based on estimated monthly cash burn of £36m and a possible working capital unwind of £100m, versus headroom of £200m, the pub group has until late August to prepare for a firesale....
...It will certainly require evidence of a V-shaped economic recovery to ignite demand for cyclical and value stocks....
...As companies try to conserve cash, dividend payouts have been postponed at groups, including Nordstrom....
...London Stock Exchange has hired Murray Roos as group director for capital markets and a member of its executive committee....
...However, on metrics that smooth out investment, like P/E, BT looks very cheap, on 6x P/E (sector 15x). Our price target remains 130p....
...The through-the-cycle, sector average one year forward P/E multiple for the asset managers peer group is 13.8x....
...Causeway Capital Management LLC, the LA hedge fund, has declared 4.88 per cent of Micro Focus....
...We value IAG at a P/B 2019 of 0.4x (as for AF-KLM / at a 20% discount to Lufthansa’s P/B multiple in the lows in 2009; IAG was formed in 2011)....
...In essence, although Metro’s “static” capital position was strong at 31 Dec 2019 (CET1 capital ratio 15.6%), it needs to conserve capital to absorb (1) planned investment spend through 2020-23 to “retool...
...build of 170-200bps p.a. as per previous guidance (though guidance for FY19 was for the lower end of that range, so this is a slight upgrade); and v) Statutory RoTE of 12-13%, which will be seen as a positive...
...The organic growth decline is similar to 2009 but we assume a more muted margin impact of 200 b.p’s vs 300 b.p.s’ – this reflects WPP has anticipated the slowdown & the likely availability of some Government...
...I think that B assets are getting priced like A assets and A assets are getting priced like A+ assets,” he says....
...In deep value territory: Stocks are trading at 30-year absolute P/B lows and near relative 2008/09 lows (43). HEI and SGO screen as particularly cheap....
...Ferguson trades on 16.5x P/E (CY20E), below the average peer group multiple of 21x. Our PT is based on 70% peer group multiples and 30% DCF....
...Looked at differently, Cyclicals are still priced for a V-shaped recovery, which might not happen....
...However, AT is a capital light, highly cash generative business so even in our bear case, net debt to EBITDA remains less than 2x – well below the group’s 3.5x covenant....
...The progress through the year will also be erratic, as it will be contingent on the interconnected “3 P’s” of the pandemic, psychology and policy....
International Edition