09 December 2013 by HCM
In an environment which has been supportive for credit over the last 12 months, a few names have been trading wider, especially in the Consumer Non-Cyclical sector. Releveraging seems to be on the agenda of a few companies through different channels. For instance, on the one hand, DGX ( Quest Diagnostics Inc) experienced weak trading conditions and decided to support its share price through share buy-backs. On the other hand, Campbell Soup (Campbell Soup Company) has been the subject of takeover speculations. Out of the money options on the stock experienced unusually high volumes recently and 5 year protection has been pushed aggressively wider. LBO could be back in people’s mind if they think systemic risks are receding.