Blog

Our Experts Comment the Times Series

See All the Comments
rss

Accelerating Tighter

16 September 2020 by jbchevrel

TUI AG CDS was the best performer in XO space today. The CDS was tighter by about 4 points, closing in 2%/4.5% context on our end (ie 584bp mid). This notable move came after it was reported by the German newspaper HB that TUI plans to raise €1b in fresh equity in the coming weeks. The equity holders lost -5% today, TUI market cap being left a tad above €2B at the close today. The details are meant to be finalised by the end of September, according to the report. Alexey Mordashov (TUI’s largest shareholder / 1st-generation oligarch from early 90s) reportedly plans to invest €0.3B in the deal. Next milestone on the name, we will get the trading update on Tuesday next week. Elsewhere, the new version of XO (without Matalan Finance) was a bit less than a point richer as a result of the exit. Brexit-wise, the more compromising tone of PM Boris appeased UK-linked risky assets on the day. All eyes on the Fed at present. Not a big reaction to the communique, with nothing surprising, but the presser is starting at 1930 Ldn.