30 November 2015 by lberuti
A few days ahead of the much anticipated ECB’s meeting, the credit market was resolutely quiet. The tone was resoundingly positive across the board, but flows in CDS were thin. There were a few active names though. In the energy sector, the convertible bonds issude last week by TOTAL ( Total SA ) brought a few buyers of protection for instance. In the telco sector, the rumour had it that ORAFP ( Orange SA ) would be considering to expand in Europe. ORAFP has struggled recently with waning sales and earnings in France as competition from lower-cost carriers has pushed call and data prices down, and that one of the option on the table would be a tie-up with TITIM ( Telecom Italia Spa ). While ORAFP’s 5 year risk premium was 5bps wider at 57.5bps, TITIM’s was 7.5bps tighter at 143bps.