17 June 2014 by HCM
At the moment, the credit market is keeping a close eye on equities. It seems that as long as stocks are holding to their current levels, it will not go meaningfully wider. So as long as the current M&A frenzy will last, nothing bad can happen. But M&A is also having an impact on individual names. Speculation about M&A is actually enough in some cases, as the example of the Liberty complex shows. Rumours linking Vodafone to VMED (Virgin Media), to IESYRP (Unity Media), to UNITY (UPC Holding B.V.) or the whole of Liberty have been rife recently. They had some more airtime today, and the rally was broad based on all these names and their whole capital structure. Longer dated bonds were the outperformers, but 5 year CDS were 15bps tighter as well.