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Fundamentals Still Matter

14 March 2014 by HCM

Credit was extremely volatile today and sentiment was very fickle: first investors appeared very wary of the situation in Ukraine and were desperate for hedges pushing indices close to recent wides, and then in the afternoon these fears went away and indices closed tighter on the day. But during this whole madness, one name steadily ground tighter: BOUY (Bouygues SA). When it was known that VIVFP (Vivendi SA) had decided to enter into exclusive talk with ALTICE (Altice SA) regarding the sale of SFR, worries about BOUY piling on debt to acquire the mobile operator alleviated and the 5 year risk premium was able to stay on its recent downward trajectory.