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M&A Risk? None for Fresenius

07 August 2017 by pdonnat

The credit market was very quiet during the whole session. Most investors are having a summer nap after the heat wave of positive earnings released in July. Half of the on-the-run credit index members have reported so far. The earnings were positive across the board. The CDS premia could stay tight for some time this month due to the investors’ apathy. We could have expected that some company news could wake up the investors interest. Fresenius Medical Care has announced today that it intends to acquire NxStage Medical, Inc. in cash and debt for 2BUSD. It hardly moved Fresenius SE & Co KGaA CDS – its main shareholder. The CDS is closing unchanged at 56bps. Fresenius will keep being acquisitive over the next 3 years in its strategic initiative. Even if Fresenius credit story is impressive, there is little left for being long risk at this level.