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Heinz (HNZ) – Too Hot for IG

04 December 2013 by HCM

This view gives a representation of the intensity of the trading activity (size of the box) together with a representation of the direction of the spread move (a name in green has tightened over the period and a name in red has widened).
Over the last 12 months, the strength of the market is clear from the vivid green of most names. But we can see a couple of outliers:
- IRMSUB (Iron Mountain Inc) is still recovering from the uncertainty regarding its possibility to convert to a REIT;
- HNZ (H.J. Heinz Company) spread was initially multiplied by 4, surging from 50 to 200 in june 2013 (justifying its move out of CDX IG into CDX HY) following its takeover by Berkshire and the associated releveraging of the company. It has tightened since, but it is now definitely playing in a different league.