High Yield Pacenotes - UniCredit

5 February 2016 Credit Research

High Yield Pacenotes

UniCredit Research page 1 See last pages for disclaimer.

Weekly Highlights ■ The first week in February proved somewhat wobbly and the iBoxx HY NFI

is 9bp wider wow at 534bp, after returns already took a nosedive in January (iBoxx HY -1.4%) with spreads in the iBoxx HY NFI widening 59bp mom to 525bp, weakening nearly as much as in the whole of 2015 (+65bp yoy). Please see our monthly High Yield Index Review, published on Monday, for details.

■ Risk premiums are clearly pricing in more stress than suggested by economic data, although some releases underwhelmed. January manufacturing PMIs out of China were mixed (official PMI 49.4 after 49.7, Caixin China PMI 48.4 after 48.2), and remained below the threshold of 50, signaling contraction and keeping sentiment fragile. At the same time, French and German final PMI readings in January were broadly in line with expectations and little changed from the previous month. Only Italy’s January manufacturing PMI declined (53.2 after 55.6), to the lowest level since September, but our economists note that December’s figure represented the highest reading since March 2011.

■ The cautiousness of investors with regard to growth has lowered market expectations of Fed action this year (currently less than a 50% probability of another hike, according to Bloomberg). However, the speech by Fed vice chair Stanley Fisher clearly suggested that the baseline scenario of further policy normalization unequivocally remains in place. Mr. Fisher stressed the need to prevent the unemployment rate from falling too much, as “a persistent large overshoot” of the employment mandate would risk an “undesirable rise in inflation that might require a relatively abrupt policy tightening, which could inadvertently push the economy into recession”.

■ Although the January employment report undershot expectations in terms of non-farm payrolls (151k vs. 190k), our economists note that the jobless rate was down to 4.9%, even as the participation rate rose, hours worked were up and hourly earnings increased strongly. Hence, our economists remain confident that three 25bp hikes will be delivered by the Fed over the course of 2016.

NON-FINANCIALS WEEKLY WINNERS AND LOSERS

Source: Markit, UniCredit Research

Contents Pattern of spread widening suggests no deeper growth concerns___________________________________ 2Rating Actions ______________________________ 4HY Calendar ________________________________ 5Recommendation Overview ____________________ 5Earnings Previews ___________________________ 6

Buzzi Unicem _____________________________ 6Faurecia _________________________________ 6Goodyear ________________________________ 7Unitymedia, UPC, Virgin Media, Ziggo __________ 7Motherson ________________________________ 9Sappi ___________________________________ 9Smurfit Kappa _____________________________ 9TUI ____________________________________ 10Telenet _________________________________ 10Thomas Cook ____________________________ 10ThyssenKrupp ____________________________ 11

Latest Company News _______________________ 12ALBA Group (Buy) ________________________ 12ArcelorMittal (Hold) ________________________ 12CNH Industrial (Sell) _______________________ 13FCA (Buy) _______________________________ 14Gestamp (Hold) __________________________ 15Kion (Hold) ______________________________ 15Manutencoop (Hold) _______________________ 16Oi (Hold) ________________________________ 17Phoenix (Hold) ___________________________ 18Stora Enso (Hold) _________________________ 18Tesco (Hold) _____________________________ 19Ziggo (Hold) _____________________________ 19

HY Issuers and Bonds _______________________ 21

FINANCIALS WEEKLY WINNERS AND LOSERS


Author Dr. Christian Weber, CFA (UniCredit Bank) +49 89 378-12250 [email protected]

Bloomberg UCCR

Internet www.research.unicredit.eu

-35.0%-30.0%-25.0%-20.0%-15.0%-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

NSINO 7% 06/26/17ISOLUX 6.625% 04/15/21

RHIGIM 7.25% 11/15/20CEIFP 4.875% 09/23/24CEIFP 3.125% 03/20/23

CEIFP 3.5% 03/22/21CEIFP 3.25% 09/04/20

PAH 6% 02/01/23PETBRA 4.25% 10/02/23CEIFP 4.375% 11/06/19

iBoxx EUR HY Non-FinancialsOIBRBZ 5.625% 06/22/21OIBRBZ 5.125% 12/15/17OIBRBZ 4.375% 03/24/17OIBRBZ 5.875% 04/17/18BBAOLX 10.5% 12/01/18OIBRBZ 4.625% 05/08/20CGGFP 5.875% 05/15/20

VKFP 4.25% 02/14/17VKFP 2.25% 09/30/24VKFP 3.25% 08/02/19

weekly total return

-8% -6% -4% -2% 0% 2% 4% 6% 8%

VICEN 9.5% 09/29/25CAZAR 5% 07/28/25

VENBAN 9.5% 12/01/25DB 8% 05/15/18

MONTE 0.891% 11/30/17BKIR 4.25% 06/11/24

IPFLN 5.75% 04/07/21MONTE 5% 04/21/20AIB 4.125% 11/26/25

PMIIM 9% 06/25/18iBoxx EUR HY Financials

VICEN 2.75% 04/11/17SBERRU 3.3524% 11/15/19

RFLBNI 5.875% 11/27/23BPIM 2.75% 07/27/20

VICEN 3.87% 12/23/17RBIAV 6.625% 05/18/21

SBERRU 3.08% 03/07/19RBIAV 5.875% 04/27/23

RBIAV 6% 10/16/23RBIAV 4.5% 02/21/25

weekly total return

https://www.research.unicredit.eu/DocsKey/creditstrategy_docs_2016_152104.ashx?EXT=pdf&KEY=SB2lbiCTHCBdthAW4aD_lVH9gRMky7HU0pkMiBXP_Vyc-7dY-u6RCw==&T=1�




Pattern of spread widening suggests no deeper growth concerns

iBoxx HY Excess Return vs. Bund HY rating category spread ratios


Pattern of spread widening across ratings no reflection of deeper growth concerns

Amid an ongoing recovery, flanked by low inflation and an accommodative central bank, it issurprising that risk premiums have widened so aggressively. While global growth concernscertainly added to risk aversion, the spread performance across rating categories does not reflect deeper growth concerns among credit investors. When growth is expected to headsouth and result in trouble for weaker companies, these tend to underperform. The wideningin the recent market turmoil has been more or less proportional, however. The ratio of BBB toA spreads in the iBoxx NFI has remained stable (1.9x) and is in line with its longer-term median level (2x). Within HY, spreads across rating categories have even compressedsharply, leaving BB notes the major underperformer YTD in spread terms: Spread (ASW) ratios of both CCC over BB (2.4x) and B over BB (1.5) have compressed and dipped wellbelow their long-term median levels (2.7x and 1.8x, respectively). Interestingly, the spread ratio of BB to BBB has remained broadly stable (2.7x), and virtually flat to its long-term median (2.6x), suggesting that the widening push is predominantly driven within IG ratings.This suggests that risk aversion has risen just temporary, and that growth is still considered tobe fairly robust.

The weak spread performance at the beginning of this year clearly corresponds to the selloffin equities. From a longer-term perspective, credit even underperformed equities on a relative basis, as spreads blew out to levels last seen in mid-2012. Needless to say, that spread blowout did not correspond to a fundamental deterioration in credit profiles. Markets andfundamentals are in disconnect mode, and the oil price is a core part of the narrative that should serve as an explanation for the weakness. In respect to the fears regarding the wider implications of the commodity crisis, credit markets play a central role. The concerns are, soruns the story of the bears, that the commodity price collapse could drive a range ofcompanies in this sector into insolvency, which would have systemic implications also for the global financial system. In our view, such fears are overblown and appear to be rooted in thememory of recent crises.

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iBoxx EUR HY main cum xover Bund cumulated excess

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Jan-

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Jul-1

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Jan-

16

CCC vs. B median CCC/BB vs. BB median B/BBCCC vs. BB median CCC/BB




INDEX PERFORMANCE

XOver vs. Cash Index Spread Index Performance


PERFORMANCE & SPREAD BY RATING

3M cumulated performance by BB/B/CCC 3M daily spread movement by BB/B/CCC


RATING ISSUANCE & RATING STRUCTURE

Issuance by Rating Rating Structure


20

70

120

170

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b-15

Ma

r-15

Apr

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5

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iBoxx EUR High Yield main cum crossover LC iTraxx Eur Xover Spread (RS)

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Weekly cumulated

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BB B CCC

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AS

W-S

prea

d (

bp)

iBoxx EUR High Yield main Non-Financials cum crossover LC BB

iBoxx EUR High Yield main Non-Financials cum crossover LC B

iBoxx EUR High Yield main Non-Financials cum crossover LC CCC

0.5

1

1.5

2

2.5

3

3.50

2,000

4,000

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10,000

12,000

Jan-

11

Apr

-11

Jul-1

1

Oct

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Jan-

12

Apr

-12

Jul-1

2

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-12

Jan-

13

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-13

Jul-1

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-13

Jan-

14

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-14

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BB B CCC CC average rating (RS)

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CCC

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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DEFAULT RATES AND SECTOR STRUCTURE

Spread vs. Default Rate Sector Structure


Rating Actions

Rating Date Issuer Agency action Rating Type From To

4-Feb-16 Kaufman & Broad S&P watch positive Issuer Credit Rating B B *+

outlook Outlook STABLE

3-Feb-16 Rain Commodities Moody's downgrade Corp Family Rating B2 B3

downgrade Senior Secured Debt Rating B2 B3

outlook Outlook STABLE NEG

downgrade Probability of Default B2 B3

2-Feb-16 Edcon Proprietary S&P upgrade Issuer Credit Rating SD CCC+

outlook Outlook NM NEG

Vallourec S&P downgrade Issuer Credit Rating BB+ BB-

outlook Outlook NEG NEG

1-Feb-16 Manutencoop Moody's downgrade Senior Secured Debt Rating B2 B3

outlook Outlook NEG STABLE

Repsol S&P watch negative Issuer Credit Rating BBB- BBB- *-

outlook Outlook NEG

29-Jan-16 Gestamp S&P upgrade Recovery Rating 3H 2H

NH Hoteles S&P upgrade Recovery Rating 2H 1

Pfleiderer S&P upgrade Issuer Credit Rating B- B

outlook Outlook POS POS

upgrade Recovery Rating 5L 5H

Source: UniCredit Research

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2008 2009 2010 2011 2012 2013 2014 2015 2016

Global Trailing 12-Month Issuer-Weighted Spec-Grade Default Rate

Global Baseline Forecast

iBoxx EUR High Yield main ASW (RS)

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

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FNL CGD IDU TEL BSC OIG CSV CNS THE HCA UTI MDI




HY Calendar

Mon, 08 Feb Tue, 09 Feb Wed, 10 Feb Thu, 11 Feb Fri, 12 Feb

Owens-Illinois: 4Q15 results Belden: 4Q15 results and conference call at 20:30 CET INT: 719-325-2432 US: 888-287-5563

Enel: FY15 results

Goodyear: 4Q15 results and conference call at 21:00 CET INT: (785) 424-1059 (Goodyear#) US: (800) 895-1715 (Goodyear#)

Owens-Illinois: conference call at 20:00 CET INT: 706-634-4943 US: 888-733-1701

Telekom Austria: FY15 results

TUI: 1Q15/16 results at 08:00 CET and conf. call at 09:15 CET INT: 44 203 367 9216 DE: 408 916 9838

Buzzi Unicem: preliminary FY15 results

Heidelberger Druck: 3Q15/16 results at 05:00 CET and conf. call at 14:00 CET Dial in: 44 207 162 0077 (957224#)

Motherson: SMRPBV FY15 results and conference call at 14:30 CET

Sappi: 1Q15/16 results at 07:00 CET and conf. call at 15:00 CET Dial in: 27 11 535 3600

Sealed Air Corporation: 4Q15 results at 19:30 CET and conf. call at 22:00 CET INT: (617) 213-4865 (46272827#) US: (888) 713-4213 (46272827#)

Smurfit Kappa: FY15 results at 08:00 CET and conference call at 11:00 CET Dial in: + 44 203 139 4830 (91124220##)

Telenet: FY15 results and conference call at 15:00 CET Dial in: +44(0)20 3427 1906

Bilfinger: FY15 results at 07:30 CET and conference call at 14:00 CET

Faurecia: FY15 results at 08:00 CET and conference call at 10:30 CET INT: 44 20 3427 1905 FR: 718 354 1152

Huntsman: 4Q15 results at 18:00 CET and conf. call at 21:00 CET INT: (617) 213 4861 (810 262 68##) US: (888) 713 4199 (810 262 68##)

Jaguar Land Rover: FY15 results

Liberty Global: Probable FYE 15 results released (not yet confirmed)

Nokia: FY15 results at 06:00 CET and conference call at 13:00 CET INT: +44-1452-555-566 (35132325#) FI: 888 636 1561 (337 949 88#)

Rexel: FY15 results and conference call at 10:30 CET Dial in: 44 207 162 0077 (957336#)

Thomas Cook: 1Q15/16 interim management statement before market open

SSAB: FY15 results at 07:30 CET and conference call at 09:30 CET INT: 44 203 364 5374 SE: 855 753 2230

ThyssenKrupp: 1Q15/16 results at 07:00 CET and conf. call at 14:00 CET Dial in: +44 0 1452 5555 66 (21979752#)

Highlight: See Eranings Previews Source: UniCredit Research

Recommendation Overview

Buy Hold Sell

ALBA Group Altice

Amplifon Cirsa

CMC di Ravenna FCA

Gamenet Goodyear

Grupo Antolin IGT

Ineos Italcementi Motherson

Numericable-SFR RCS & RDS

Sappi Virgin Media

Wind ZF Friedrichshafen

Alain Afflelou Bormioli Rocco Buzzi Unicem

CABB Douglas Europcar Faurecia

FMC Fresenius

FTE Automotive Gestamp

Guala Closures Haniel

HeidelbergCement Hornbach HP Pelzer

ista Jaguar Land Rover

Kerling Kion

LafargeHolcim Lecta

Lufthansa Mahle

Manutencoop Nokia

Oi Ontex

OTE Hellenic Telecom Peugeot Phoenix Prada

Renault Rhiag

Schaeffler Schmolz & Bickenbach

Smurfit Kappa Snai

STADA Stora Enso

Sunrise TeamSystem

Techem Telenet

Thomas Cook TMF Group

TUI United Group Unitymedia

UPC Vestas

Wienerberger Xella Ziggo

Zobele

Ardagh Glass Bombardier

CNH Industrial Hertz

Matterhorn Mobile Piaggio

Source: UniCredit Research




Earnings Previews

Buzzi Unicem Wednesday, 10 February Buzzi Unicem will release preliminary FY15 results on 10 February 2016. 4Q15 revenues are

expected to come in at EUR 673mn with an EBITDA of EUR 115mn. Hence, market consensusexpects Buzzi to report recurring EBITDA slightly above its full-year 2015 guidance of EUR 450mn. Besides the 2016 outlook and expected cement pricing in Italy this year, we believe market willfocus on commentary on Italian antitrust investigations as well as strategic options formanagement after also the second attempt to takeover Italian peer Sacci failed.

Christian Aust, CFA (UniCredit Bank) +49 89 378-12806; [email protected]

Faurecia Thursday, 11 February Faurecia (Ba3p/--/BB-s) will report its FY15 results on 11 February at 8:00 CET and will hold

a conference call at 10:30 CET. Bloomberg consensus expects 2H15 revenues up by 7.5%and EBIT up to EUR 457.5mn vs. EUR 362.7mn yoy and for FY15, revenues are expected to be up by 9.6% yoy and EBIT up to EUR 851mn vs. EUR 673mn yoy. In mid-December, Faurecia announced the disposal of its Automotive Exteriors business (plastic body parts,front-end modules) to French auto supplier Plastic Omnium SA (not rated). The business to be disposed of comprises bumpers and front-end modules, had sales of EUR 1.98bn in 2014 (92% in Europe), EBITDA of EUR 129mn (EBITDA margin of 6.5%) and employs 7,700people at 22 sites. The transaction is based on an EV of EUR 665mn and is expected to close after all approvals in 2016. Faurecia said that this divestiture, combined with early redemptionof Faurecia’s 2018 3.25% EUR 250mn OCEANE convertible bond, effective 16 January,would almost completely eliminate its net debt (1H15: EUR 1,130mn). We calculate that, as a result of these two transactions, Faurecia’s pro forma 1H15 net leverage will decline by 0.6x.The company’s adjusted gross leverage was 3.4x at LTM1H15. Please refer to our commenton 3Q15 revenues in our HY & Xover Update of 15 October. The company will provide an update on its group strategy on 19 April. We note that at the end of September 2015, therewas speculation in the media about a potential takeover bid for US-based auto supplier Lear Corp (Ba1s/BBB-s) (market cap of USD 7.9bn) to create a seating champion with strong electric/electronic growth potential and to keep pace with the growth of German autosuppliers. For details of Faurecia’s credit profile and our model, please refer to our Euro HighYield & Crossovers publication (18 September, from page 228). We keep a holdrecommendation on the EOFP 6/22 bond, which trades below par, at around a yield of 3.8%,and basically on the cash curve of bonds of its major shareholder, Peugeot (Ba3p/BB-p/BBs; 51.14% of capital and 67.35% of voting rights at FYE 2014). Peugeot’s automotive creditmetrics also profit from Faurecia’s deleveraging given that Faurecia is fully consolidated inPeugeot’s accounts. In the absence of larger debt-financed acquisitions, we expect further rating upgrades after the completion of the disposal in 2016.

Dr. Sven Kreitmair, CFA (UniCredit Bank) +49 89 378-13246; [email protected]




Goodyear Tuesday, 9 February Goodyear (GT; Ba2s/BBs/BB-s) will report 4Q15 results on 9 February. Bloomberg

consensus expects a revenue decline by 7.7%, EBIT up to USD 407mn vs. USD 299mn yoyand EBITDA up to USD 595mn vs. USD 478mn yoy. We expect some improvement in creditmetrics, given that GT usually generates most FCF seasonally in 4Q. Nevertheless, this might not be enough to justify rating upgrades as soon as the release of the FY15 results. There isa likelihood of further rating upgrades in 2016 (if continuously supported by a stable NorthAmerican and European tire market environment, the low oil price and planned debt repayments). We calculated gross debt/EBITDA (adj.) of 3.4x in LTM9M15. GT hasannounced that it will redeem its GT 6.75% 4/19 bond on 14 January 2016 at a price of103.375 using the net proceeds from its recent EUR 250mn issuance (GT 3.75% 12/23 bond). Both bonds are issued by its slightly better-rated European subsidiary, Goodyear Dunlop Tires Europe B.V. (GDTE; Ba1s/BBs/BBs). The transaction will result in interest-expense savings of approximately USD 8mn in 2016 and beyond. Already on 2 November, GT issued USD 1bn in 5.125% 11/23 notes with a slightly weaker bond rating (Ba3/BB/BB-) and redeemed USD 1bn in 8.25% 2020 senior notes on 7 December. We note that anotherbond, the GT 6.5% 3/21 (USD 1bn), will also be callable from 1 March 2016 at 104.875 (minimum 30-day call notice). With its 3Q15 results, GT affirmed its 2015-16 financial targets: segment operating income (SOI) growth of between 10% and 15% p.a., annual positive FCFfrom operations and adjusted debt/EBITDAP of 2-2.1x at FYE 2016. The key SOI drivers in 2015 are global volume growth of 1-2%, price/mix vs. raw materials of USD 370mn (previous: USD 330mn), cost savings vs. inflation of USD 0mn (previous: USD 70mn), FX of USD160mn (previous: USD 200mn), the Amiens closure worth USD 20mn and other tire-related costs of USD 20mn (previous: USD 0mn). The company’s most important recovery driver hasbeen its North American Tire segment, which in 9M15 accounted for 54% of GT’s group EBIT.In FY11-14, the company was able to reduce its adjusted gross leverage from around 6-7x in FY 2008/09 by improving its EBITDA, generating FCF (before pension funding) of betweenUSD 600mn and USD 900mn p.a. and injecting significant amounts of capital into pensionfunding. As a result, there has been a series of rating upgrades over the past few years. Moody’s hurdle ratios for an upgrade are EBITA/interest ≥4.0x (3Q15: 2.85x) and debt/EBITDA of 2.0x (3Q15: 3.1x). At S&P, an upgrade is possible if FOCF/adjusted debt is≥15% (1H15: 13.5%) and if GT maintains debt/EBITDA of <2x (1H15: 2.78x) on a sustained basis. On the credit positive side, GT’s 2014-16 capital allocation plan is for USD 800-900mn of debt repayments and pension funding, which is aimed at further strengthening its leveragemetrics and advancing its objective of achieving an investment-grade credit rating.


Unitymedia, UPC, Virgin Media, Ziggo Thursday, 11 February Liberty Global (LG) is expected to report its 4Q15 results next week – presumably on 11

February (FYE 2014 results were reported on 12 February). We expect the company to beable to reach its (somewhat vague) guidance of mid-single-digit OCF growth in FY15 (3% through 9M15). However, we should point out that Ziggo was cited as a drag on the group’sgrowth in 3Q15 and that – excluding Ziggo – OCF growth would have been 4%. The company said that it expected growth in 4Q15 to be higher than the rate through 9M15, so we think that Ziggo will be in the spotlight in this quarterly results release. It will also be interesting to seewhether the company updates its share buyback target. LG currently plans USD 2.5bn inbuybacks by the end of 2016, including what it repurchased in 4Q15. Net leverage as of 3Q15 came to 4.9x for the group, which was down from 5.0x as of 1H15.




Unitymedia should report another strong quarter, with revenue growth of around 5% to EUR555mn (3Q15: +6.4% to EUR 542mn) and EBITDA up 7% to EUR 348mn (3Q15: +7.3% to EUR 342mn). We expect revenue growth to come down yoy due to a strong result in 4Q14,but we expect the company to be able to keep the margin stable qoq after price increaseswere successfully put through at the beginning of the year. Leverage could go up slightly from the 3.73x reported on the senior secured level and 4.81x on the total level if the companyupstreamed additional cash to Liberty Global. This would not be a surprise after Unity issueda EUR 420mn bond in December 2015, exceeding the amount recently refinanced via the 10% soft call option (around EUR 180mn).

UPC should see a slight improvement in revenues to around EUR 640mn qoq. It will beinteresting to see whether the company can boost growth in CEE, which has continued to be one of the group’s weak spots. OCF was up 3.9% in 3Q15, a clear improvement qoq, so itwould be encouraging if the company can sustain this momentum. Since the CEE businesshas continued to underperform the stronger Swiss/Austrian business, we think that UPC will eventually need to make a strategic decision on whether to further invest or sell theunderperforming assets in this region. Any indication of the company’s thinking on this topicwould be helpful. UPC showed an improved OCF margin of 55.1% in 3Q15. It would be an encouraging sign if the company could sustain this level in the coming quarter. Senior netleverage was down in 3Q15 to 3.38x, with total leverage at 4.47x. We expect these levels tobe little changed in 4Q15.

Virgin Media should see a sustained revenue trend in 4Q15 with revenues of around GBP1.2bn. We expect to see a slight improvement over the prior quarter’s result of GBP 1.15bn asProject Lightening begins to make more of an impact. However, we expect this to remain amodest factor in 4Q15. The OCF margin is likely to remain near the lower level of 43.6% in3Q15 (vs. 45% through 1H15) as marketing expenses for Project Lightening continue to rise.However, we expect an increase in OCF qoq to EUR 525mn due to a decline in expenses for sports programming that dragged down the 3Q15 figure (EUR 502mn). We expect leverage toincrease slightly qoq vs the 3.49x on the senior secured level and net leverage of 4.41x, dueto additional spending on Project Lightening and potentially some cash upstreamed to the parent before the end of the year.

Liberty CEO Mike Fries recently indicated that Ziggo was not able to turn around itsperformance in 4Q15, so we expect only a slight improvement in revenues to around EUR625mn in 4Q15 from EUR 613mn in 3Q15. OCF was down 1% to EUR 349mn in 3Q15, for avery strong margin of 57%. Ziggo said that it thinks that this level is sustainable in the comingquarter due to a quality program that it initiated in 2H15, but we would not be surprised if themargin declines closer to 55% (54.4% through 9M15) due to increased promotional activity toprevent further market share losses. As of 3Q15, senior secured leverage was at 3.73x andtotal leverage was at 4.77x, which represented an improvement qoq. We expect these levels to remain fairly stable qoq.

Jonathan Schroer, CFA (UniCredit Bank) +49 89 378-13212; [email protected]




Motherson Wednesday, 10 February SM Motherson Auto Systems Group BV (SMRPBV; --/BB+s/--) will report 3Q15/16 results

(ending 31 December 2015) and we expect revenues again up by 10-20% yoy, given organic growth, but also supported by the Scherer & Trier (S&T) acquisition on 30 January 2015 andagain a weaker EUR vs. USD (average -12% yoy in calendar 4Q15). SMRPBV’s cash position was EUR 111.2mn at the end of 2Q plus a 5Y EUR 250mn RCF 1 (EUR 12.8mndrawn), a 3Y EUR 100mn RCF 3 (undrawn) and an undrawn EUR 50mn RCF 2. S&P’sassumptions (16 December 2015) are for 1. annual revenue growth of 10-15% in FY16 (ending March 2016) and 2017 driven by additional sales from the S&T acquisition,commissioning of production in SMRP's new facilities, and global automotive sales growth ofabout 2% in 2015 and about 3% in 2016 on positive momentum in Europe (excluding Russia)and North America, 2. stable EBITDA margin of about 7.5% in the same period as ongoingcost-efficiency measures offset ramp-up costs on new plants, 3. negative FCF given FFO of about EUR 200-240mn p.a., but substantial capex of about EUR 300mn in FY16 and aboutEUR 280mn in FY17, primarily related to expansionary capex. SMRPBV already held aconference call concerning the VW issue on 24 September (please see our comment on thisin our HY & Xover Update of 28 September). Apart from publishing its annual capex plan,SMRPBV does not provide any concrete guidance. For details of MSSIN’s credit profile andour model, please refer to our Euro High Yield & Crossovers publication (18 September). Wekeep our buy recommendation on the MSSIN 4.125% 7/21 bond, which trades below par andat a yield of around 5.5% and close to Jaguar Land Rover bonds, which is quite high for aBB+ credit. Nevertheless, the elevated yield level might be due to duration being quite high at 5, its VW exposure (MSSL: 44%; SMRPBV: 55%) and the dependency of MSSIN’s leverageand rating development on its India-based parent, MSSL.


Sappi Wednesday, 10 February Sappi’s 1Q results will be released at 7:00 CET (8:00 South Aftican time) with a conference

call taking place at 15:00 CET (UK 0808 162 4061; passcode: 44758#). With the weaker ZARin recent quarters and solid dissolving wood-pulp prices (in USD), we expect Sappi to report revenues of USD 1.37bn with an EBITDA of 151mn. We expect management to confirm thefull-year outlook for a further EBITDA improvement this year, yoy stable capex and lowergross and net debt.


Smurfit Kappa Wednesday, 10 February Smurfit’s FY15 results are scheduled for 8:00 CET (7:00 GMT) and management will host a

presentation/ conference call at 11:00 CET (+44 203 139 4830; passcode: 91124220#).Supported by a solid demand environment and the contribution from last year’s acquisitions, consensus expects Smurfit to have finished the year with quarterly sales of EUR 2.09bn andEBITDA of EUR 323mn, which would likely imply the company has delivered on its qualitativefull-year 2015 outlook of higher earnings yoy and improving returns. We expect the focus during the FY15 results presentation to be on the outlook for containerboard prices inUS/Europe as well as Smurfit’s further capital allocation (likely to remain focused onacquisitions given, e.g. the recently announced takeovers in Brazil for EUR 0.2bn).





TUI Tuesday, 9 February TUI (Ba3p/BB-s/--) will publish 1Q16 results on Tuesday, 9 February. We expect the company

to report a broadly flat-to-slightly-better EBITA vs. the previous year, i.e. we anticipate a negative EBITA of around EUR 106-108mn. Recall that the first two quarters are typically the weakest for TUI. During the conference call, we think management will comment on potentialcost savings and merger synergies, as well as potential margin increases in Hotels andCruises. Furthermore, we expect management to provide a statement on the expected impacton EBITA from the terrorist attacks in 2015, as well as currency effects. We think thecompany will report some FX tailwinds from favorable currency movements in 1Q16, drivenby the GBP and Scandinavian currencies. From a credit perspective, we expect the companyto talk about its capital structure, refinancing needs and a potential call of the outstanding TUIGR 4.5% 10/19, 1st call 10/16 at 102.25.

Mehmet Dere (UniCredit Bank) +49 89 378 11294; [email protected]

Telenet

Wednesday, 10 February Telenet will report its 4Q15 results on 10 February and will hold a conference call on thesame day at 15:00 CET. We expect the company to show a slight slowdown in revenuegrowth qoq of 5.5% to EUR 460mn (9M15: 6.2%) and a lower EBITDA margin of around 50% to EUR 225mn. There are some seasonally higher expenses in 4Q, which should putpressure on the margin relative to the 53.7% figure reached through 9M15. However, weexpect the company to easily reach its 2015 outlook for revenue growth of 5-6%, EBITDA growth of 4-5%, capex of around 20% of revenue and FCF (company definition) of EUR 250-260mn. We expect FCF generation in the period to lead to some further deleveraging to around 3.2xfrom 3.3x as of 30 September. While sustained, strong financial performance would set the stage for the completion of the BASE acquisition, which is expected before the end of 1Q16,we expect investors’ focus to remain more on the impact of this transaction in the near termrather than the company’s quarterly results.

Jonathan Schroer, CFA (UniCredit Bank) +49 89 378-13212 [email protected]

Thomas Cook Thursday, 11 February Thomas Cook (--/Bs/B+s) will publish its 1Q16 results next Thursday. In line with TUI

(Ba3p/BB-s/--), we expect flattish to slightly better performance than in the previous year. In terms of EBIT, we expect the company to report negative EBIT of around GBP 48-50mn vs. GBP 53mn in 1Q15. Note that the quarter is the second worst one in the year for touroperators. As with TUI, we expect the company to comment on the impact of the terrorist attacks of 2015 on 2016 figures, as well expected currency effects. On top of this, we expectmanagement to briefly comment on Summer 2016 bookings. From a credit perspective, weexpect management to give a brief statement on the capital structure, i.e. a potential call ofthe TCGLN 7.75% 06/20 (1st call 06/16 at 103.875).

Mehmet Dere (UniCredit Bank) +49 89 378 11294 [email protected]




ThyssenKrupp Friday, 12 February ThyssenKrupp will release its 1Q15/16 results on 12 February 2016 at 7:00 CET; a

conference call is scheduled for 14:00 CET the same day. The latest comments on the FYoutlook by CEO Heinrich Hiesinger were cautious. While he affirmed the guidance, during the AGM he said a “clear recovery” of the steel market in the second half of the company’sreporting period was needed in order to meet the FY15/16 adj. EBIT target of EUR 1.6-1.9bn. The outlook further includes a clear improvement in net income and sales as well as FCF before M&A to be level with the prior year. Efficiency measures are to save EUR 850mn. Alsoat the AGM, a dividend of EUR 0.15 (+36% yoy) per share was approved, although 25% ofshareholders rejected the dividend proposal. Investors opposed the payout as they demand stronger equity and want the company to get debt under control. In terms of 1Q15/16 adjustedEBIT, the company guides for a stable development of the Components Technology(1Q14/15: EUR 67mn) and the Industrial Solutions (EUR 92mn) division. Elevator Technique (EUR 178mn) is expected to improve. In the materials businesses, Material Services (EUR2mn) is also set to improve, while more deterioration awaits Steel Europe (EUR 79mn) andSteel America (0mn). S&P’s stable outlook on ThyssenKrupp’s rating already factors in continued gradual improvement of the company’s profitability and a FFO/debt ratio of 12-17% (FY14/15: 15.1%). Major threats to the development of the company include steel pricesdeclining further, though these seem to have found a bottom in recent weeks. The corporate performance program “impact” and the group’s purchasing program“synergize+” are currently being implemented at CSA in Brazil. Should a trend towardsimproving operational performance in Brazil materialize, after the business generated breakeven business cash flow as defined by the company for the first time, this would be aclearly positive factor for the group company’s rating profile. Another positive impact would bemore-effective European import restrictions on Chinese steel exports, as indicated by the EU, last week stating to impose tariffs on certain Chinese steel imports, ranging from 9.2-13%.

Stephan Haber, CFA (UniCredit Bank) David Bertholdt (UniCredit Bank) +49 89 378-15192 +49 89 378-13211 [email protected] [email protected]




Latest Company News

ALBA Group (Buy) Monday, 1 February In an interview with German newspaper Handelsblatt, ALBA’s CEO, Axel Schweitzer, said

that ALBA is on track to find a strategic investor for its Chinese operations. He added that ALBA could look for another investor for its domestic Services businesses. Regarding thetimeline, Mr. Schweitzer said that the signing of the stake sale in China is expected to happenthis summer – a memorandum of understanding has already been signed – while the process for a stake sale in the Services business is expected to start in the coming months. Twoinvestors, one Chinese investor and a Services business investor, could support ALBAthrough their core competencies better in order to achieve ALBA’s growth targets. Mr.Schweitzer said that ALBA could sell more than 50% of Chinese operations but that he couldnot provide any guidance regarding the Services stake sale. Furthermore, Mr. Schweitzerreiterated that ALBA aims to reduce debt and to grow in Services and in China through astake sale. Regarding the capital structure, Mr. Schweitzer said that ALBA has not ruled outan IPO. However, he admitted that the conditions for an IPO are not right. Regarding 2015results, Mr. Schweitzer said that ALBA is ahead of its targets in all segments, except for themetals business, where the whole industry is suffering. We note that rumors of a potentialstake sale of ALBA have been swirling in the media for around a year and that this remains the key credit driver for the company. We commented on the valuations of the stake sale inour DCB from 30 November 2015. We keep our buy recommendation on the outstandingALBALN 8% 05/18, which currently trades at 85.5/91.0 following a significant price drop in January. We note that the drop is more market driven and is a result of the weak liquidity inthe bond rather than a result of the fundamentals of the company. We expect prices torecover to at least to mid-90 in the coming months and to further recover thereafter, following the execution of the stake sale and the subsequent debt reduction, as projected bymanagement. ALBA will publish its FY15 results in April.


ArcelorMittal (Hold) Friday, 5 February This morning, ArcelorMittal has published its 4Q15 results with EBITDA roughly in line with

consensus expectations. Also the company’s FY16 outlook did not come as a big surprise (afurther expected EBITDA decline is expected to be offset by cash cost reductions to keepFCF positive). However, the company has proposed a USD 3bn capital increase, which willreduce net debt to below USD 12bn.Revenues declined by 25% yoy to USD 14.0bn andEBITDA declined by 39% to USD 1.1bn (consensus estimate USD 1.1bn). In the final quarterEBITDA declined by only 18%. Full-year EBITDA of USD 5.2bn hit the lower end of the company’s guidance of USD 5.2-5.4bn. In 4Q15, steel shipments declined yoy by 6.8% to 19.7mmt. Net debt was lowered qoq to USD 15.7bn (USD 16.8bn at the end of September2015), in line with the company’s guidance of below USD 15.8bn. Liquidity improved qoq andstood at USD 10.1bn as of YE15 compared to USD 9.6bn as of 30 September 2015. Giving the effect to the announced sale of ArcelorMittal’s stake in Gestamp for EUR 875mn, liquiditywould be USD 11.1bn as of 31 December 2015 and net debt USD 14.7bn.

For FY16, ArcelorMittal expects full-year EBITDA in excess of USD 4.5bn, based on the assumption of prevailing raw material costs and spot steel spreads. This guidance does notcapture any upside to current market conditions. As already stated during the 3Q15 resultsannouncement, a combination of company actions and known developments is expected to support EBITDA in 2016 by USD 1.0bn relative to the 4Q15 annual run-rate level.




Due to the order book and the time lag required for lower raw material costs to positivelyimpact the cost of sales, EBITDA is expected to sequentially decline in 1Q16. The company targets a reduction in the cash requirements of the business in 2016 by in excess of USD 1.0bn as compared to 2015. As a result, the level of EBITDA required for free-cash-flow breakeven would decline to USD 4.5bn, thus helping to ensure that the company continues to generate positive free cash flow, reduce net debt and maintain strong liquidity.

Regarding the company’s outlook for FY16, the main positive surprise comes from aproposed USD 3bn capital increase (expected to be completed in 1H16), which will reduce net debt to below USD 12bn. The Mittal family has committed to taking up its pro rataentitlement corresponding to approximately USD 1.1bn and the rest is underwritten by banks.The reported net-debt-to-EBITDA ratio would decline from 3.0x (USD 15.7bn/5.2bn) at YE15to around 2.6x at YE16E (USD 11.8bn/USD 4.5bn), taking the company’s EBITDA target forFY16 into consideration.

We keep our hold recommendation for MTNA bonds, given the currently week steel marketdevelopment. However, the company’s capital increase is clearly credit positive and improvesthe credit profile of the company, while reducing leverage and improving liquidity goingforward. With regard to the latter, the already strong liquidity situation will be further improved.On the one hand, the company will reduce its leverage (thereby reducing fears that thecompany could breach financial covenants and have less access to RCF lines) and improvecash liquidity beyond the already USD 10.1bn at YE15 (pro forma for Gestamp sale and capital increase to around USD 14bn). The capital increase should be clearly credit positivefor MTNA bonds (in average up 3 cash points) this morning, especially for MTNA bonds withshorter maturities.

Stephan Haber, CFA (UniCredit Bank) +49 89 378-15192 [email protected]

CNH Industrial (Sell) Monday, 1 February CNH Industrial (CNHI, Ba1s/BB+s/--) reported 4Q15 (FY15) results with an adj. EPS of USD

0.19 cents, which was above Bloomberg consensus estimates of USD 0.13-0.17 cents. In 4Q15 (FY15), group revenues declined by 14.6% (-20.4%) yoy: Agricultural Equipment (AG) -27.5% (-12.4%), Construction Equipment (CE) -23.9% (-24.0%), Commercial Vehicles (CV) -15.1% (-12.4%) and Powertrain -7.7% (-20.3%). The operating margin of industrial activities was 8.2% (5.8%) vs. 4.7% (6.4%) yoy, that of AG was 11.7% (8.6%) vs. 7.1% (11.6%) yoy, CE was up to 3.0% (3.5%) vs. 1.1% (2.4%) yoy, CV was up to 5.4% (3.0%) vs. 3.0% (0.3%)yoy and that of Powertrain was down to 6.8% (5.2%) vs. 6.7% (5.0%) yoy. 43% of grouprevenues and 58% of group EBIT in 2015 was generated by the AG segment. Net industrial debt was significantly down in 4Q15 to USD 1.6bn vs. USD 3.4bn qoq and USD 2.7bn yoy.For 2016, CNHI expects agricultural equipment industry in NAFTA to decline, with the rowcrop sector down 15-20%; EMEA agricultural equipment markets are expected to be flat. The commercial vehicles segment is expected to increase by up to 5% in EMEA; tradingconditions in LatAm are expected to remain challenging. Net sales of Industrial Activities areestimated between USD 23 and USD 24bn (FY15: USD 24.7bn), with an operating margin of Industrial Activities of 5.2-5.8% (FY15: 5.8%) and net industrial debt in FY16 of USD 1.5-1.8bn (USD 1.6bn). The company announced a share buyback program to repurchase up toUSD 300mn funded with liquidity, and also aims to pay USD 200mn in dividends. Moody’s hurdle ratios for a downgrade are as follows: EBITA margins <6% (LTM 3Q15: 4.0%),EBIT/interest expense of approximately 2.5x (0.92x) and debt/EBITDA of >3.5x (5.0x). S&P’shurdle ratio is debt/EBITDA >4x (9M15: 3.35x) for an extended period. We continue to expect negative rating actions, in particular at Moody’s.




On 20 November 2014, Iveco received a statement of objections from the EC alleging thatIveco and other companies in the heavy and medium duty truck industry had breached EU antitrust rules. The EC indicated that it would seek to impose significant fines on themanufacturers. In February 2015, Handelsblatt reported that the truck makers (e.g. DAF,Scania, Volvo, MAN, Daimler) might face EUR 4bn in total fines as a result of the EU probe.For details on the credit profile and debt structure, see our Euro HY & Crossovers publication(18 September), pages 216ff. Compared with CNHI’s 2015 guidance, industrial revenueswere slightly below and industrial operating margin was in line with expectations, albeit net industrial debt was a positive surprise. Despite the absence of a detailed split of industrialnumbers (annual report filing at the end of March), we estimate that industrial leverage roseby around 0.5x in 2015 vs. 2014; CNHI’s 2016 guidance is slightly weaker again for industrialcredit metrics vs. 2015. Available liquidity was up to USD 9.3bn vs. USD 7.4bn qoq and USD8.9bn yoy, which included EUR 6.3bn in cash. The liquidity covered all cash maturities up to, and including, the end of 2017 and almost fully for 2018. Only one CNHI bond has yet tomature in 2016: a USD 500mn bond in November. CNHI EUR bonds have slightlyunderperformed the iBoxx EUR HY BB index in 2016 and now trade close to FCAIM (B1s/BB-p/BB-s) bonds. Although pressure on CNHI’s high BB ratings is more than discounted, wecontinue to have a sell recommendation on longer-dated CNHI bonds for the time being as CNHI’s EUR curve trades flat and negative headlines could arise if EU antitrust fines are announced for Iveco, but also given the 2016 credit metrics outlook and the bondholdernegative share buy-back announcement. Moreover, 2019/2020 USD bonds of CNHI trademore than 100bp wider than the EUR 2019/2021 bonds. By 1M Z-score, the CNH 7/19 (USD) and 4/18 (USD) look the most attractive and the CNHI 12/17 (USD) and 11/20 (USD) are theleast attractive bonds.

Dr. Sven Kreitmair, CFA (UniCredit Bank) +49 89 378-13246 [email protected]

FCA (Buy) Wednesday, 3 February FCA (B2s/BB-s/BB-s) reported US sales up by 6.9% (a 0.1% decline was expected). Despite

poor weather conditions in the Northeast, US car sales topped estimates for January(17.46mn vs. 17.3mn expected). They continue to be supported by the low oil price and low interest rates, which are boosting demand for SUVs and pickups. FCA’s Jeep brand saleswere up by 15% and Ram brand sales were up by 5%. These two brands accounted for 59%of total FCA US sales. FCA US finished the month of January with 103 days’ supply of inventory. US industry sales figures for January are internally projected at an estimated17.5mn units SAAR. Ford’s sales fell by 2.8% vs. an estimated -3.2% and GM’s were up by 0.5% vs. -0.9%. Toyota’s sales fell 4.7% vs. 4.8% expected. VW (A3n/BBB+n/BBB+n) brand vehicle sales in the US fell by 15% in January, which was below an estimate of -9.8% by TrueCar Inc., according to Bloomberg. Audi sales in the US were up by 2.7% with Audi SUVsales up by 26.7%, helped by the new Q7, and A7 and A8 sales up by 51.6% and 12.7%, respectively. We keep our buy recommendation on FCAIM bonds given the following: 1.FCA’s positive sales momentum in Italy, Europe and in the US, small Asian and dieselexposure, Jeep and Ram brand sales (SUV/Pickup/Van/MPV segments represent 43% of FCA’s 2015 global production according to LMC Automotive data) supported by the low oilprice and 2. reduced FCA bond supply given plans to reduce liquidity after the removal ofring-fencing around FCA US’s cash in 1Q16, which should lead to positive rating actions (e.g. at S&P). Among EUR-denominated bonds, FCAIM bonds trade around 50-100bp wider than Peugeot’s (Ba3p/BBp/BBs). The FCAIM 4/23 (USD) bond trades roughly 100bp wider thanthe 7/22 (EUR). From a 1M Z-score perspective, the most attractive in order are the FCAIM 7/22 and 3/21 and the 4/23 (USD). The least attractive are the 10/16, 3/17 and 6/17 bonds.

Dr. Sven Kreitmair, CFA (UniCredit Bank) +49 89 378-13246, [email protected]




Gestamp (Hold) Friday, 5 February ArcelorMittal (Ba2n/BBn/BB+n) announced today that it is selling its 35% stake in Gestamp

Automoción (Ba3s/BBs) to the majority shareholder, the Riberas family, for a total cashconsideration of EUR 875mn. The transaction is unconditional and payment is expected to be made to ArcelorMittal within six months. In addition to the cash consideration, ArcelorMittalwill receive a payment of EUR 10mn as a 2015 dividend. ArcelorMittal entered into a JV withthe Riberas family in 1998 with the intent of developing, through Gestamp, the business of stamping, assembling and welding blanks for automotive original equipment manufacturers(OEMs). ArcelorMittal will continue its supply relationship with Gestamp through its 35%shareholding in Gonvarri, a sister company of Gestamp. ArcelorMittal sells coils to Gonvarri for processing before they pass to Gestamp and other customers. Further, ArcelorMittal willcontinue to have a board presence in Gestamp, collaborate in automotive R&D and remain itsmajor steel supplier. Aditya Mittal, CEO of ArcelorMittal Europe and group CFO, said that itsmajor supplier relationship with Gonvarri and Gestamp is unaffected by this transaction.Francisco J. Riberas, president and CEO of Gestamp, said Gestamp and Gonvarri willcontinue their strategic relationship with ArcelorMittal in their common interest.

We believe that the transaction is neutral for Gestamp. We note that from 2010 to 2015,Gestamp Automoción paid in total EUR 222mn in dividends to Corporacion Gestamp (100%owned by the Riberas family), which owns also Gestamp Renewables. Gestamp has adividend restriction of 35% of consolidated FY net income in its loan covenants if leverage isbetween 2-3x and 50% if leverage is below 2x (3Q15: 2.3x). For details on Gestamp’s creditprofile and our model, see page 245 in our Euro High Yield & Crossovers publication of 18September. We keep our hold recommendation on Gestamp bonds. Although the credit-profile momentum of the company is stable to moderately positive, the current bond priceoffers limited price-upside potential given its call feature. The bond call is on or after 31 May2016 at 102.938 (EUR) and at 102.813 (USD). During its 3Q15 conference call, the companyagain said that it has not decided whether it would call the bonds or not but it would made up its mind in the next few months. Gestamp’s FY15 results will be reported at the latest by theend of April 2016.


Kion (Hold) Friday, 5 February KION (Ba2p/BB+s) announced the early redemption of its EUR 450mn KIONGR 6.75% 2/20

bond, which is callable from 15 February at 103.375. The company is also refinancing its oldpre-IPO credit facility with significantly improved terms, reflecting IG-style features. The bond and drawings under the old credit facility will be repaid from a new corporate credit facility forEUR 1.5bn. KION expects significant interest savings: if the refinancing had taken place atthe beginning of 2015, annual interest expenses for that year would have been around EUR 30mn lower. Under the terms and conditions of the bond, early redemption payments ofaround EUR 15mn will be booked as financial expenses in 1Q16, yet will be quickly recoveredfrom the interest savings. In addition, the reversal of the remaining capitalized borrowing costs of approximately EUR 11mn for the bond and the old credit facility will also be recordedas financial expenses in 1Q16, but will not impact cash flow. The new EUR 1.5bn corporatecredit facility has two tranches. The EUR 1,150mn revolving credit line has a 5Y maturity to 5February 2021 with two extension possibilities for one year each and will be used to fundexisting bank debt and part of the bond repayment, and it will be available for working capital requirements, potential smaller acquisitions and as a liquidity reserve. The second EUR 350mntranche with a 3Y maturity to 5 February 2019 will be used to fund the bond repayment until apotential refinancing in the capital markets.




The new corporate credit facility is unsecured and only guaranteed by KION GROUP AG. Theclub deal was arranged with a group of thirteen relationship banks. KION said that in thecoming years, it plans to gradually increase its dividend-payout ratio to 35%. We keep our hold recommendation on the KIONGR 6.75% 2/20 bond, given the call announcement.According to its 2020 strategy, KION aims to become the world’s largest forklift group. In ourview, this could lead to acquisitions, with the US as one of the major target markets. Given our forecast, and in the absence of any larger acquisitions, we expect an upgrade of KION’srating to Ba1 at Moody’s, possibly after the FY15 results are released, if the 2016 guidancedoes not disappoint. However, we no longer expect an upgrade to investment grade to take place in 2016. An upgrade would also depend on movements in general macro conditionsuntil then. KION will report its FY15 results on 17 March and will hold a conference call at14:00 CET. For details on KION’s credit profile and outlook, please refer to our Euro High Yield & Crossovers publication (18 September).


Manutencoop (Hold) Thursday, 4 February S&P has reiterated its B rating on Manutencoop following the announcement of the EUR

48.5mn antitrust fine but is keeping the rating on watch negative. This compares to Moody’srecent decision to downgrade Manutencoop’s rating to B3 (stable outlook). S&P notes that Manutencoop is expected to appeal the decision and is still trying to secure committed long-term financing to prevent any liquidity shortage in the meantime. S&P is not including thepayment of a fine in its base-case scenario for now, given the uncertainty concerning the outcome of the appeals process. S&P considers it unlikely that Manutencoop will be requiredto pay the fee before the end of April, although this is a possibility if it loses its appeal to delaypayment of the fine. However, if Manutencoop is required to pay the fee in the short term and is not able to secure short-term financing, S&P thinks the company will face a liquidityshortage that could result in a rating downgrade. S&P currently calculates the company’sliquidity as adequate (sources/uses >1.2x) during the less intense periods for working capitalusage (2Q and 4Q), but as less than adequate (<1.2x but >1.0x) during the more intenseperiods (1Q and 3Q). S&P notes that the Italian administrative tribunal (TAR), which will hearthe appeals case, is expected to issue a decision on whether the payment of the fine can bedelayed within 90 days after Manutencoop formally makes an appeal, although the decisioncould also take longer. We also see a considerable likelihood that the payment of the fine will be delayed until the TAR reaches its decision on the appeal, which would prevent a short-term liquidity crunch. However, the lack of transparency with these potential outcomes withinthe Italian legal system has created a binary outcome for potential bond-price moves in the short term, and we therefore reiterate our hold recommendation on MANTEN for now.

Tuesday, 2 February Moody’s downgraded Manutencoop to B3 (stable outlook) from B2 (negative outlook), citingthe company’s tight liquidity situation after the Italian antitrust authority levied a EUR 48.5mnfine. The outlook is currently stable. Moody’s said that the B3 rating reflects the company's 1.limited access to committed bank facilities; 2. sole exposure to the Italian economy; 3. strong reliance on the Italian public sector and payment discipline; 4. potential negative reputationalimpact from the ICA verdict; 5. potential negative effects from the Brindisi and Milan Expo2015 investigations; and 6. expected adjusted gross leverage of around 5.0x by the end of FY16. Moody’s also cited the potential for the EUR 24.5mn performance bond to be triggered,but expects Consip to wait until the appeals are heard over the next 12-18 months before triggering this. Moody’s noted that the company’s only committed facility of EUR 10mn is already fully drawn and that the remaining facilities are uncommitted. Moody’s said that therating could be revised upward if the company is able to sign additional committed bankfacilities and if the antitrust appeal is resolved positively.




Moody’s noted that the company has made progress with its cash generation and operatingperformance and would require these trends to be sustained in order to support ratingsupside. Ratings downside would come from a further deterioration in the company’s liquidity profile, a weaker operating performance as a result of lost contracts from reputationaldamage, or additional legal expenses or penalties. While we share Moody’s concerns aboutthe company’s tight liquidity situation, we also believe that the bond’s current mid-yield of 14.5% reflects the distressed environment. Moreover, we believe that the company has agood chance of delaying the EUR 48.5mn fine through its appeal and perhaps receiving alower fine – or even winning the appeal outright – considering that the fine levied appears to be unusually harsh in the context of previous Italian anti-trust reviews. On the other hand, a guilty verdict would clearly result in a tight liquidity situation and the company has not yet been able to secure committed facilities despite mentioning this as a priority since summer 2015. We therefore reiterate our hold recommendation on MANTEN for now considering the potentialbinary outcome of the antitrust investigation, which will take some time to clarify finally.


Oi (Hold) Tuesday, 2 February Bloomberg reports that Brazilian Communications Minister Andre Figueiredo said he has won

support for a bill that would loosen regulations for telecommunications companies like Oi toencourage foreign investment and M&A. Finance Minister Nelson Barbosa and PresidentDilma Rousseff have endorsed efforts to submit legislation to congress for approval as earlyas next month, Andre Figueiredo said. Oi, as a so-called “concessionaire,” is required to maintain a vast network of landline infrastructure across Brazil, including 650,000 payphones, which cost BRL 300mn annually. A new law would let the company focus on wireless and broadband services, rather than on its declining landline phone business and mayremove obstacles to acquiring the company. In our view, the costs mentioned are less of aconcern than the massive disputes with the Brazilian regulator, Anatel, and immense “judicial deposits” that significantly burden FCF generation. Hence, in our view it is fair to assume thatany investor would seek a clear legal/regulatory basis from which Oi can benefit goingforward. Telefonica Brasil SA, also a concessionaire in the country, would also benefit from achange in telecommunications law, but less than Oi. Telefonica is a concessionaire only forSao Paulo, while Oi is a concessionaire for all of Brazil except Sao Paulo. Tim Participacoes and America Movil’s Claro are not subject to the same rules governing the fixed-line business. The Bloomberg article was not overly optimistic that a telecommunications law change wouldbe executed soon, given that first Anatel would be required to submit a proposal to congress,which would then have to be approved. We have a hold recommendation for OIBRBZ bonds,as we expect Oi to benefit from consolidation in the Brazilian telecoms market. We view itpositively that the Brazilian government is realizing that a telecommunications law change could benefit investments and thereby benefit the Brazilian economy. However, we fully agreethat a timely solution is absolutely crucial for Oi to improve its credit profile and to get accessto capital markets to refinance its debt. We are currently waiting for an update on Oi’snegotiations with LetterOne. Hence, we keep our hold recommendation for OIBRBZ bonds forthe time being.

Stephan Haber, CFA (UniCredit Bank) +49 89 378-15192 [email protected]




Phoenix (Hold) Friday, 5 February Fitch highlighted that the recent difficult trading conditions in Germany and working-capital

investments, as well as the recent acquisitions, will reduce Phoenix Pharmahandel’s (--/BB+s/BBs) rating headroom. Fitch assumes a breach of its adj. FFO/net leveragerequirement of 4.5x in 2015 (FY14: 4.4x). However, its outlook remains stable, based on itsassumption that the breach will only be temporarily. Fitch highlighted the following key credit risks: 1. Phoenix’s continued investments, mainly its intention to acquire Mediq ApothekenNederland B.V. and the acquisition of SUNPHARMA. We estimate a takeover price for MediqApotheken in the three-digit million range, and for SUNPHARMA in the low-two-digit million range. In December 2014, Phoenix announced the purchase of Mediq Apotheken NederlandB.V. via its subsidiary Brocacef Groep. On 22 January 2015, Phoenix reported the intendedtakeover of Slovakina SUNPHARMA which operates pharmacies. 2. Phoenix's profitability in its German home market has been under pressure following intense and unsustainable pricecompetition triggered by regulatory changes in 2011. These resulted in Phoenix losing marketshare, which it rebuilt to around 28% during the financial year to January 2014 (FY14), and it now aims to gradually improve profitability in the region. However, profitability has improved in2H15/16, though slowly. On 17 December 2015, Phoenix Pharmahandel reported solid9M15/16 results (ending 31 Oct.). At 31 October 2015, net debt (company definition) wasEUR 1,492mn, which corresponds to a decrease yoy (31 Oct 2014: EUR 1,529mn), butweakened versus FYE 2014/15 (EUR 1,069mn). For 9M15/16 we calculate an improvementin credit metrics yoy but weaker metrics versus FY14/15. At 9M15/16, adj. net debt/adj.EBITDA (UniCredit calculation, operating lease and pension adjusted) improved yoy to 3.4x(9M14/15: 3.6x; FY14/15: 2.5x) and adj. FFO/net debt was 21% (9M14/15: 17%, FY14/15:26%). At end-9M15, Phoenix had headroom of around EUR 1.5bn under its committedfacilities and a cash position of EUR188mn, which was more than enough to cover its short-term financial liabilities of EUR829mn (Including ABS/Factoring).On 15 July 2015, S&P raisedits rating on Phoenix to “BB+” from “BB” due to improving earnings over the past few quarters,and “favorable” operating dynamic and cost saving initiatives which should enable furtherimprovement in 2016. S&P assumes a successful integration of Mediq (which is not closed). We assume no negative rating action or outlook revision by S&P. We confirm our holdrecommendation on Phoenix. In our view, Fitch’s comment is already figured in the spreadwidening of PHARGR issues in 2016. In 2016, spreads of the PHARGR 3.625% 7/21 and PHARGR 3.125% 5/20 senior issues have widened by around 80bp, which is a slightunderperformance versus t the iBoxx EUR High Yield main Non-Financials BB index (+65bp widening). However, PHARGR spreads have still outperformed the index by 200bp since the beginning of 2015.

Dr. Silke Stegemann (UniCredit Bank) +49 89 378-18202 [email protected]

Stora Enso (Hold) Friday, 5 February Stora Enso (Ba2/BBs/--) reported 4Q15 results in line with market consensus and its own

guidance, yesterday. Stora Enso reported sequentially stable sales (-0.5% qoq to EUR 2.49bn) and operating EBIT (-1.6% qoq to EUR 242mn). Operating EBITDA of EUR 341mn (-3.4% qoq to EUR 341mn), however, came in slightly below expectations, but still improved by 11% yoy.As expected, capex clearly accelerated in 4Q15 (EUR 355mn; +25% qoq; FY15: EUR 956mn)but due to the seasonal EUR 104mn inflow from W/C (lower receivables), reported net debt remained stable at EUR 3.24bn at end-December 2015 and net leverage still improved slightly to 2.4x (from 2.5x in September and compared to a strategic target of “below 3x”). Fully-adjusted net leverage (UniCredit definition) stood at 3.2x at FYE 2015, down 0.3x from FYE 2014. The capex outlook for 2016 stands at EUR 680-720mn due to a slightly accelerated ramp-up of the paperboard project in China, which is clearly more than the EUR 550mn we had in our model so far.




And while this still represents around a EUR 250mn decline vs. FY15, we also note that Stora’sdividend proposal of EUR 0.33/share for FY15 (i.e. up EUR 23mn yoy) has disappointedshareholders, which somewhat mitigates the higher-than-expected capex outlook for 2016. A decision on Phase 2 of the China mill won’t be taken before end-2016, according to management. For 1Q16, Stora’s management again forecasts qoq stable sales and op. EBITresults. We think the FY15 results and outlook are unlikely to have an impact STERV bonds andwe confirm our hold recommendation on Stora Enso.

Christian Aust, CFA (UniCredit Bank) +49 89 378-12806 [email protected]

Tesco (Hold) Wednesday, 3 February Tesco (Ba1s/BB+s/BB+n) has announced that it will lift the hourly rate of pay for its workers

by 3.1% to GBP 7.62 per hour, higher than the government’s new “National Living Wage” ofGBP 7.20 per hour. The pay increase will come into effect on 3 July 2016. As a reminder, thegovernment plans to increase the living wage in the UK to an hourly pay of GBP 7.20 from the current level of GBP 6.50 and ultimately to at least GBP 9.20. Moody’s says in a note that thefirst increase in 2016 will have minimal credit impact, but the effect of further increases to2020 will be much greater on the UK retail sector. Moody’s does not anticipate any rating actions in the near term for the UK retail sector, as retailers have time to adapt their strategiesand cost structures in the next 12-18 months before the more substantial pay increases begin. We note that total employment costs are equivalent to around 13% of revenue forTesco (as of FY15), which is in the middle range for UK retailers, for whom employment isequivalent to 9-15% of revenue. We do not expect this headline to weigh immediately on2016 earnings, although UK food retailers are struggling in a low EBIT-margin environment, driven by food price deflation and increasing competition from hard discounters. As therewere headlines about living wage increases already last summer, we only expect limited impact on bond spreads. Therefore, we keep our hold recommendation on the name andcontinue to prefer bonds at the longer end of the curve, i.e. TSCOLN 2.125% 11/20 andTSCOLN 2.5% 07/24. We expect these bonds to be exposed to limited volatility (vs. bonds of Group Casino [--/BBB-wn/BBB-s]) and see them as a good carry trade.


Ziggo (Hold) Wednesday, 3 February Following recent media speculation, yesterday Vodafone (VOD, Baa1s/BBB+s/BBB+s)

confirmed that it is in discussions with Liberty Global (LG, Ba3s/BB-s/--) regarding the creation of a joint venture in the Netherlands that would incorporate both companies’ local operating businesses. The discussions do not extend beyond the creation of a JV in theNetherlands. Our big picture: We assume, based on press speculation, that T-Mobile NL is for sale (as Deutsche Telekom needs to offset the potentially negative effect of the upcoming US spectrum auction) and that this has triggered negotiations between Vodafone and LG. A JVbetween Vodafone and LG in the Netherlands would leave all options open for a potentialmerger between Vodafone and LG. If Vodafone and LG cannot agree on a JV in the NL, we expect LG to use the opportunity to buy T-Mobile NL. Besides, the purchase price for T-Mobile NL would probably be higher if DT can sell it to LG (offering convergence synergies)than if it were sold to PE sponsors. Hence, if Vodafone and LG can agree on a potential JV in the Netherlands, it is a good indication that both may agree on further transactions or abusiness combination in the future.




However, even this “small” solution will require difficult negotiations, given that LG is much bigger than VOD in the Netherlands and a 50/50 JV is difficult to agree on, even if VOD isprepared to make a (cash) payment to LG’s Ziggo. In general, we assume that a JV betweenZiggo and VOD NL would be credit positive for ZIGGO bonds, as the transaction improves Ziggo’s business profile. We doubt that a transaction would reduce Ziggo’s leverage. Weassume that a combined Ziggo/VOD NL entity would be leveraged close to the maximumtarget of 5x (including potential synergies) and the additional debt at Ziggo would offset the additional EBITDA from VOD NL. The cash position from the additional debt at Ziggo mightbe upstreamed to LG to mitigate the valuation difference between Ziggo and VOD NL. Inaddition, we think VOD would have to make a significant cash payment to LG to get a 50% stake in the JV; we assume that VOD is seeking balanced control of the newly combinedentity. We note that a transaction with VOD is still vague and that Ziggo could still opt for acombination with T-Mobile NL. Hence, we keep our hold recommendation for ZIGGO bonds. We also expect a JV between VOD and LG to probably lead to further speculation aboutpotential transactions between the two parties.





HY Issuers and Bonds

Sec Name Instrument Rating PX Yield Spd TR 1w TR 1m ER 1w ER 1m LQ

CON Accor (Hold) ACFP 5Y CDS 141

FR0012005924 4.125% PERP (SUB) --/BB/BB 94.5 5.6 557 +0.0 -3.6 +0.1 -1.9 -

Agrokor (Hold) AGROK

XS0776111188 9.875% 01/05/19 B2/B/-- 105.7 6.3 581 -0.2 -0.7 +0.0 +1.0 -

XS0836495183 9.125% 01/02/20 B2/B/-- 106.5 6.8 543 +0.6 +0.2 +0.7 +1.9 -

Albea Beauty (no rec) ALBHSA

XS0783934168 8.75% 01/11/19 B2/B/-- 106.4 5.8 555 +0.2 +0.4 +0.3 +2.1 -

Alize (no rec) ALLGRP

XS1137505290 6.25% 01/12/21 B2/B+/-- 103.4 5.3 533 -0.2 -1.0 +0.0 +0.7 -

Arcelik (no rec) ACKAF

XS1109959467 3.875% 16/09/21 --/BB+/BB+ 99.3 4.1 389 +0.8 +1.0 +1.0 +2.7 -

Auris (no rec) AUDIOL

XS1153374084 8% 15/01/23 Caa1/B-/-- 108.0 5.7 570 +0.3 -0.2 +0.4 +1.5 -

Autodis (no rec) AUTODI

XS0982711128 6.5% 01/02/19 B2/B/-- 102.8 5.1 307 +0.0 +0.0 +0.1 +1.7 -

XS1117280039 9% 15/11/20 (PIK) B3/CCC+/-- 95.1 10.4 1,055 -0.7 -0.1 -0.6 +1.6 -

Barry Callebaut (no rec) BARY

BE0933072291 6% 13/07/17 Ba1/BB+/-- 107.2 1.0 113 +0.1 +0.0 +0.3 +1.7 +

BE6222320614 5.625% 15/06/21 Ba1/BB+/-- 116.9 2.3 216 +0.2 -0.1 +0.4 +1.7 -

Boing (no rec) IMOCAR

XS1028951009 6.625% 15/07/19 B2/B/-- 93.4 9.0 898 +0.7 +0.4 +0.8 +2.2 -

Boparan (no rec) BOPRLN

XS1082473395 4.375% 15/07/21 B2/B+/-- 88.0 7.0 697 -0.6 -0.6 -0.4 +1.1 +

Bormioli Rocco (Hold) BORMIO

XS0615235966 10% 01/08/18 B3/B/-- 104.3 6.9 617 +0.2 +0.3 +0.3 +2.0 +

Brakes Capital (no rec) BRKCAP

XS1071435561 FRN 15/12/18 B3/B-/--

BUT (no rec) BUTSAS

XS1080611970 7.375% 15/09/19 B3/B/B 104.3 5.6 537 +0.2 +0.3 +0.3 +2.1 -

Campofrio (no rec) CPFSM

XS1117299211 3.375% 15/03/22 Ba3/BB+/-- 98.1 3.7 355 -0.5 -2.3 -0.3 -0.6 -

Carlson Wagonlit (no rec) CARWAG

XS0652911776 7.5% 15/06/19 B1/B+/-- 104.2 4.6 53 +0.3 -0.3 +0.4 +1.4 +

Cirsa (Buy) CIRSA

XS0506591519 8.75% 15/05/18 B3/B+/-- 101.2 5.0 439 +0.4 +0.3 +0.5 +2.1 +

XS1227583033 5.875% 15/05/23 B3/B+/-- 92.8 7.2 687 +0.4 -1.5 +0.5 +0.2 +

CNH Industrial (Sell) CNHI

XS0604641034 6.25% 09/03/18 Ba2/BB+/-- 105.5 3.5 365 -0.1 -1.1 +0.1 +0.6 +

XS1046851025 2.75% 18/03/19 Ba2/BB+/-- 96.8 4.0 400 -0.4 -2.9 -0.2 -1.2 +

XS1114452060 2.875% 27/09/21 Ba2/BB+/-- 95.6 3.8 362 +1.1 -3.2 +1.3 -1.5 +

Darling Ingredients (no rec) DAR

XS1240984754 4.75% 30/05/22 Ba3/BB+/-- 94.0 5.9 571 -0.3 -2.4 -0.2 -0.7 -

Darty (no rec) DRTYLN

XS1038807340 5.875% 01/03/21 --/BB-/-- 104.4 4.4 433 +0.0 -1.0 +0.1 +0.8 -

Deutsche Raststaetten (no rec) TANKRA

XS0997664411 6.75% 30/12/20 --/B/-- 105.9 4.0 388 +0.2 -0.3 +0.4 +1.5 +

Douglas (Hold) DOUGR

XS1251078009 6.25% 15/07/22 B1/B/-- 103.9 5.3 528 +0.4 -0.4 +0.5 +1.3 +

XS1251078694 8.75% 15/07/23 Caa1/CCC+/-- 101.3 8.4 840 +0.4 -0.5 +0.6 +1.2 +

Dufry (no rec) DUFSCA

XS1087753353 4.5% 15/07/22 Ba3/BB/BB- 102.8 3.9 382 -0.4 -1.5 -0.3 +0.2 -

XS1266592457 4.5% 01/08/23 Ba3/BB/BB- 102.5 4.0 388 -0.1 -1.0 +0.0 +0.7 -

Spd: FIX bonds – z-spread, FRN – discount margin, PIK bonds – mid swap, 5Y CDS spread Source: Bloomberg, iBoxx, UniCredit Research TR 1w/1m: weekly/monthly total return (%), ER 1w/1m weekly/monthly excess return vs. iBoxx HY NFI (%); LQ: Liquidity indicator CON: Consumers, ENG: Energy, IDU: Industrials, TMT: TMT, FNL: Financials





CON Edcon Proprietary (no rec) EDCON

XS0596918135 9.5% 01/03/18 Caa2/CCC/-- 50.3 51.3 5,110 -2.0 -14.1 -1.9 -12.4 -

XS0888936118 9.5% 01/03/18 Caa2/CCC/-- 49.2 52.1 5,266 -1.3 -16.8 -1.1 -15.1 -

Elior (no rec) ELRFP

XS0808635600 6.5% 01/05/20 Ba3/BB/BB 105.9 3.0 211 +0.2 +0.0 +0.3 +1.7 +

Europcar (Hold) EUROCA

XS1028950704 5.125% 15/07/21 B2/B+/-- 101.3 4.7 482 -0.2 -1.3 -0.1 +0.4 +

XS1241053666 5.75% 15/06/22 B3/B-/-- 100.7 5.6 559 -0.4 -2.3 -0.3 -0.6 +

Faurecia (Hold) EOFP

XS1204116088 3.125% 15/06/22 B1/--/BB- 96.0 3.9 364 -0.4 -2.0 -0.2 -0.3 +

FCA (Buy) FCAIM

XS0764640149 7% 23/03/17 B2/BB-/BB- 105.2 2.4 242 +0.1 -0.2 +0.2 +1.5 +

XS0305093311 5.625% 12/06/17 B2/BB-/BB- 104.3 2.4 252 +0.2 -0.1 +0.3 +1.6 +

XS0906420574 6.625% 15/03/18 B2/BB-/BB- 106.3 3.4 367 -0.7 -1.9 -0.5 -0.1 +

XS0647264398 7.375% 09/07/18 B2/BB-/BB- 109.3 3.3 349 -0.6 -1.1 -0.5 +0.6 +

XS0953215349 6.75% 14/10/19 B2/BB-/BB- 109.4 3.9 404 -1.8 -2.5 -1.7 -0.8 +

XS1048568452 4.75% 22/03/21 B2/BB-/BB- 101.2 4.5 443 -2.4 -5.1 -2.2 -3.4 +

XS1088515207 4.75% 15/07/22 B2/BB-/BB- 101.1 4.5 433 -2.4 -5.3 -2.2 -3.6 +

Financiere Quick (no rec) QUIBB

XS1054086928 FRN 15/04/19 B3/B-/-- 83.6 10.9 1,103 -0.5 -0.3 -0.4 +1.4 -

Findus (no rec) FINDUS

XS1028948716 8.25% 01/08/19 (PIK) --/CCC+/-- 97.7 9.8 995 +0.6 -0.9 +0.7 +0.8 -

Frigoglass (no rec) FRIGOG

XS0932291007 8.25% 15/05/18 B2/B+/-- 93.7 11.6 1,164 +0.0 -2.9 +0.1 -1.2 -

FTE Automotive (Hold) FTEAU

XS0952827094 9% 15/07/20 B2/B/-- 104.8 7.0 688 -0.1 -0.2 +0.1 +1.5 -

Galapagos (no rec) GALAPG

XS1071419524 5.375% 15/06/21 B1/B/-- 92.5 7.1 701 -1.9 -3.9 -1.8 -2.2 -

XS1071411547 FRN 15/06/21 B1/B/-- 94.6 5.9 609 -0.2 -0.5 -0.1 +1.2 -

XS1071420027 7% 15/06/22 Caa1/CCC+/-- 81.6 11.2 1,093 -1.3 -5.1 -1.2 -3.4 -

Gamenet (Buy) GAMENT

XS0954289913 7.25% 01/08/18 B2/B/-- 98.6 8.0 803 -3.5 +6.6 -3.4 +8.3 -

Gestamp (Hold) GESTAM

XS0925126491 5.875% 31/05/20 B1/BB+/-- 102.5 4.8 488 -0.3 -0.3 -0.2 +1.5 +

Goodyear (Buy) GT

XS1333193875 3.75% 15/12/23 Ba1/BB/BB 100.4 3.6 363 -0.3 -0.5 -0.2 +1.2 +

Groupe Casino (Hold) COFP 5Y CDS 441

FR0011606169 4.87% PERP (SUB) --/BB*-/BB 76.7 15.3 1,524 +0.0 -13.5 +0.2 -11.8 -

Grupo Antolin (Buy) ANTOLN

XS1046537665 4.75% 01/04/21 B1/BB-/-- 101.5 4.3 437 -0.6 -1.4 -0.5 +0.3 +

XS1246049073 5.125% 30/06/22 B1/BB-/-- 102.1 4.6 460 -0.8 -1.3 -0.6 +0.4 -

Hema (no rec) HEMABV

XS1075833860 6.25% 15/06/19 --/B/-- 71.8 17.8 1,782 -1.1 -1.3 -0.9 +0.4 +

XS1075799319 FRN 15/06/19 --/B/-- 70.2 17.0 1,719 -0.4 -1.8 -0.3 -0.1 +

XS1075845526 8.5% 15/12/19 --/CCC+/-- 43.9 37.6 3,701 -1.1 -2.8 -1.0 -1.1 +

Hertz (Sell) HTZ 5Y CDS 623

XS0995045951 4.375% 15/01/19 B2/B/-- 100.5 4.3 434 -0.1 -1.6 +0.0 +0.1 +

Hornbach (Hold) HBMGR

DE000A1R02E0 3.875% 15/02/20 Ba1/BB+/-- 107.4 2.0 200 +0.2 -0.3 +0.3 +1.4 +

HP Pelzer (Hold) PELHOL

XS1028947585 7.5% 15/07/21 B2/B+/BB 103.3 6.6 653 +0.0 -1.5 +0.1 +0.2 -

Hydra (no rec) HYDHLD

XS1059509429 FRN 15/04/19 B2/B/--






CON Iglo Foods (no rec) IGBOND

XS1084586822 FRN 15/06/20 B1/BB-/-- 98.7 4.7 486 -0.2 -1.1 +0.0 +0.7 +

IGT (Buy) IGT

XS0564487568 6.625% 02/02/18 Ba2/BB+/-- 108.0 2.5 263 -0.3 -0.1 -0.1 +1.6 +

XS1204431867 4.125% 15/02/20 Ba2/BB+/-- 99.6 4.2 428 +0.0 -0.3 +0.2 +1.4 +

XS0860855930 4.75% 05/03/20 Ba2/BB+/-- 100.8 4.6 457 -0.1 +0.0 +0.0 +1.7 +

XS1204434028 4.75% 15/02/23 Ba2/BB+/-- 94.7 5.7 541 +0.7 +1.1 +0.9 +2.8 +

Ikks (no rec) IKKSFR

XS1084836441 6.75% 15/07/21 --/B/B 92.5 8.5 840 -1.5 -4.9 -1.4 -3.2 -

Intralot (no rec) INLOTG

XS0947176631 9.75% 15/08/18 B1/B/BB- 104.0 7.7 611 +1.6 +0.4 +1.8 +2.2 -

XS1064899120 6% 15/05/21 B1/B/BB- 88.6 8.8 867 +0.0 -0.6 +0.2 +1.1 -

IVS Group (no rec) IVSIM

XS0911441409 7.125% 01/04/20 --/BB-/-- 103.3 4.5 441 -0.8 -1.3 -0.7 +0.4 +

Jarden (no rec) JAH

XS1084944096 3.75% 01/10/21 Ba3*+/BB*+/-- 105.0 2.9 267 +0.2 -0.1 +0.3 +1.6 +

Labeyrie (no rec) LABERE

XS1044528849 5.625% 15/03/21 --/B/B+ 101.2 5.3 531 +0.1 -2.9 +0.2 -1.2 -

Lufthansa (Hold) LHAGR 5Y CDS 151

XS1109110251 1.125% 12/09/19 Ba1/BBB-/-- 101.0 0.9 93 +0.1 +0.6 +0.3 +2.3 +

XS1271836600 5.125% 12/08/75 (SUB) --/BB/-- 100.7 5.0 492 +0.2 -1.7 +0.3 +0.0 +

LuxGEO Travel (no rec) LUXGEO

XS0879569464 7.5% 01/08/18 B3/B/-- 89.9 12.6 1,247 +0.5 -3.5 +0.7 -1.8 -

Magnolia (no rec) MDMFP

XS0955023931 9% 01/08/20 B2/B/-- 102.5 7.1 803 +0.0 +0.4 +0.2 +2.1 -

Marcolin (no rec) MCLIM

XS0991759076 8.5% 15/11/19 B2/B-/-- 99.9 8.4 860 -1.2 -1.0 -1.1 +0.7 +

Merlin Entertainments (no rec) MERLLN

XS1204272709 2.75% 15/03/22 Ba2/BB/-- 96.0 3.6 330 +0.1 -1.7 +0.2 +0.0 -

Motherson (Buy) MSSIN

XS1082399301 4.125% 15/07/21 --/BB+/-- 93.5 5.5 542 -0.8 -3.5 -0.7 -1.8 +

New Look (no rec) NEWLOK

XS1248517341 FRN 01/07/22 B1/B/B 98.0 4.9 506 +0.1 -0.5 +0.2 +1.2 -

NH Hoteles (no rec) NHHSM

XS0954676283 6.875% 15/11/19 --/B+/B+ 108.4 3.7 381 -0.4 -1.5 -0.2 +0.2 +

Novalis (no rec) ELISGP

XS1225112272 3% 30/04/22 Ba2/BB/-- 96.0 3.7 352 +0.0 -1.8 +0.2 -0.1 -

ODEON & UCI Cinemas (no rec) ODEON

XS0627135774 FRN 01/08/18 B3/CCC+/--

Ontex (Hold) ONTEX

BE6272861657 4.75% 15/11/21 Ba2/BB/-- 105.6 2.8 297 -0.2 -0.5 -0.1 +1.2 +

Peugeot (Hold) UGFP

FR0011233451 5.625% 11/07/17 Ba3/BB-/BB 106.0 1.5 155 +0.2 -0.2 +0.3 +1.5 +

FR0011439975 7.375% 06/03/18 Ba3/BB-/BB 111.2 1.9 203 +0.2 -0.6 +0.4 +1.1 +

FR0011567940 6.5% 18/01/19 Ba3/BB-/BB 112.0 2.3 238 +0.2 -2.1 +0.3 -0.4 +

FR0010014845 6% 19/09/33 Ba3/BB-/BB 110.7 5.1 412 +0.3 -0.3 +0.4 +1.4 +

Piaggio (Sell) PIAGIM

XS1061086846 4.625% 30/04/21 B1/B+/BB- 101.9 4.1 411 -0.1 -0.4 +0.1 +1.3 +

Picard Surgeles (no rec) PICSUR

XS1117298833 7.75% 01/02/20 B3/B-/CCC+ 106.2 5.2 516 +0.1 -0.2 +0.3 +1.5 -

Port Aventura (no rec) PORTAV

XS0982712019 FRN 01/12/19 B3/B-/-- 100.2 5.3 542 -0.3 +0.4 -0.2 +2.1 -

XS0982712365 7.25% 01/12/20 B3/B-/-- 101.2 6.9 692 -0.2 -1.2 +0.0 +0.5 +






CON R&R Ice Cream (no rec) ICECR

XS0928190940 9.25% 15/05/18 (PIK) Caa1/CCC+/-- 100.9 6.9 477 -0.1 -0.2 +0.0 +1.5 -

XS1080255067 4.75% 15/05/20 B2/B/-- 102.1 3.9 396 -0.2 -0.7 +0.0 +1.0 +

Rhiag (Hold) RHIGIM

XS0986071453 FRN 15/12/19 B1/B*+/--

XS0986071537 7.25% 15/11/20 B1/B*+/-- 106.5 3.5 308 -7.7 -6.0 -7.6 -4.3 +

Safari (no rec) LPLAYG

XS1029172514 8.25% 15/02/21 B2/B/-- 105.1 6.5 655 +1.3 -0.4 +1.4 +1.3 -

Schaeffler (Hold) SHAEFF 5Y CDS 251

XS0923613060 4.25% 15/05/18 Ba2/BB-/-- 101.8 2.2 163 +0.2 +0.1 +0.3 +1.8 -

XS0954907787 6.875% 15/08/18 (PIK) Ba3/B/-- 103.4 3.8 366 +0.1 +0.5 +0.3 +2.2 +

XS1067862919 2.75% 15/05/19 Ba2/BB-/-- 100.5 2.6 269 +0.8 -0.3 +0.9 +1.4 +

XS1067864881 3.25% 15/05/19 B1/B/-- 100.1 3.3 334 +0.6 -1.2 +0.7 +0.5 +

XS1212469966 2.5% 15/05/20 Ba2/BB-/-- 98.8 2.8 281 +0.0 -1.7 +0.2 +0.0 +

XS1126486239 5.75% 15/11/21 (PIK) Ba3/B/-- 106.1 3.8 396 +0.1 -0.6 +0.2 +1.1 +

XS1067864022 3.5% 15/05/22 Ba2/BB-/-- 99.6 3.6 337 +0.3 -2.3 +0.5 -0.5 +

XS1212470972 3.25% 15/05/25 Ba2/BB-/-- 93.9 4.1 352 +0.3 -2.9 +0.5 -1.2 +

Selecta (no rec) SELNSW

XS1078234330 6.5% 15/06/20 B2/B+/-- 94.6 8.0 801 -0.9 -0.8 -0.8 +0.9 -

Sisal Holding (no rec) SISTP

XS0931919947 7.25% 30/09/17 B1/B/-- 98.6 8.3 817 -0.1 +0.8 +0.1 +2.5 +

SMCP (no rec) SMCPFP

XS0943327378 8.875% 15/06/20 B3/B/-- 105.7 5.8 537 -0.3 -0.9 -0.2 +0.8 -

Snai (Hold) SNAIM

XS0982712449 7.625% 15/06/18 B2/B-/-- 100.2 7.7 767 +0.5 +4.9 +0.7 +6.6 -

XS0982711805 12% 15/12/18 Caa2/CCC/-- 98.5 12.8 1,273 +0.9 +8.3 +1.0 +10.1 -

Takko (no rec) TAKKO

XS0908516080 9.875% 15/04/19 Caa1/CCC+/-- 54.2 34.9 3,479 -1.3 +1.8 -1.1 +3.5 +

Tereos (no rec) TEREOS

FR0011439900 4.25% 04/03/20 --/BB/BB 90.4 7.1 707 +0.0 -0.3 +0.1 +1.4 +

Tesco (Hold) TSCOLN 5Y CDS 304

XS0992632702 1.25% 13/11/17 Ba1/BB+/BB+ 100.1 1.2 138 +0.1 +0.3 +0.3 +2.0 +

XS0697395472 3.375% 02/11/18 Ba1/BB+/BB+ 103.8 2.0 211 +0.5 +0.7 +0.6 +2.4 +

XS1082970853 1.375% 01/07/19 Ba1/BB+/BB+ 97.2 2.3 233 +0.4 +1.1 +0.6 +2.8 +

XS0992638220 2.125% 12/11/20 Ba1/BB+/BB+ 97.7 2.7 260 +0.7 +1.3 +0.8 +3.0 +

XS1082971588 2.5% 01/07/24 Ba1/BB+/BB+ 90.9 3.8 333 +1.0 +2.2 +1.2 +3.9 +

XS0295018070 5.125% 10/04/47 Ba1/BB+/BB+ 87.9 6.0 494 +2.1 +4.7 +2.2 +6.4 +

Thom Europe (no rec) THOEUR

XS1087760648 7.375% 15/07/19 B2/B/-- 103.5 5.9 598 +0.1 -0.1 +0.2 +1.6 -

Thomas Cook (Hold) TCGLN

XS0937169570 7.75% 15/06/20 --/B/B+ 103.8 6.1 618 +0.0 -0.1 +0.1 +1.6 +

XS1172436211 6.75% 15/06/21 --/B/B+ 103.5 5.8 579 -0.2 -0.9 +0.0 +0.8 -

TUI (Hold) TUIGR 5Y CDS 130

XS1028943162 4.5% 01/10/19 Ba3/BB-/-- 104.3 1.9 153 +0.1 -0.3 +0.3 +1.5 +

Twinset (no rec) TWSSBS

XS1086778641 FRN 15/07/19 B1/B/-- 92.6 8.3 842 -0.8 -1.9 -0.7 -0.2 +

Univeg (no rec) UNIVEG

XS0992644038 7.875% 15/11/20 B3/CCC+/-- 102.4 7.2 707 +0.7 -2.4 +0.9 -0.7 -

Volvo (Sell) VLVY 5Y CDS 158

XS1150673892 4.2% 10/06/75 (SUB) Ba1/BB+/BB+ 93.5 6.0 593 -0.5 -4.6 -0.4 -2.9 +

XS1150695192 4.85% 10/03/78 (SUB) Ba1/BB+/BB+ 90.8 6.5 622 -0.7 -5.2 -0.5 -3.5 +

Vougeot (no rec) VUECIN

XS0953085627 FRN 15/07/20 B2/B/--






CON WEPA (no rec) WEPAHY

DE000A1TNA88 6.5% 15/05/20 B1/BB/-- 105.4 4.4 389 -0.1 -0.4 +0.0 +1.3 -

ZF Friedrichshafen (Buy) ZFFNGR

DE000A14J7F8 2.25% 26/04/19 Ba2/BB/-- 98.7 2.8 279 +0.2 -1.1 +0.4 +0.6 +

DE000A14J7G6 2.75% 27/04/23 Ba2/BB/-- 92.7 4.0 362 +0.7 -2.7 +0.8 -1.0 +

Zobele (Hold) ZOBELE

XS0882293557 7.875% 01/02/18 B2/B+/-- 99.7 8.2 813 +0.0 -0.9 +0.1 +0.8 -

ENG Bulgarian Energy (no rec) BULENR

XS0989152573 4.25% 07/11/18 --/--/BB- 96.1 5.8 596 +0.5 -0.9 +0.7 +0.8 +

CGG (no rec) CGGFP

XS1061175607 5.875% 15/05/20 Caa1*-/CCC+/-- 48.2 27.7 2,707 +7.9 -0.9 +8.0 +0.9 -

CP Energy (no rec) ENAPHO

XS0982708769 7% 01/02/21 B1/--/B+ 96.6 7.8 780 -0.4 -4.1 -0.3 -2.4 -

EDP (Buy) EDPPL

XS0399353506 0% 12/11/23 --/BB+/-- 74.8 3.9 340 +0.8 -1.4 +0.9 +0.3 -

PTEDPUOM0024 5.375% 16/09/75 (SUB) Ba2/B+/BB 95.4 6.5 640 +0.9 -2.6 +1.0 -0.9 -

ENCE (no rec) ENCSM

XS1117280112 5.375% 01/11/22 Ba3/BB-/-- 101.4 5.1 501 -0.1 -1.3 +0.1 +0.5 -

Enel (Buy) ENELIM 5Y CDS 115

XS0954675129 6.5% 10/01/74 (SUB) Ba1/BB+/BBB- 106.4 4.2 427 +0.8 -1.3 +1.0 +0.4 -

XS1014997073 5% 15/01/75 (SUB) Ba1/BB+/BBB- 102.3 4.4 441 +0.2 -1.9 +0.4 -0.2 -

Gas Natural (Hold) GASSM 5Y CDS 130

XS1139494493 4.125% PERP (SUB) Ba1/BB+/BBB- 89.5 6.1 580 +1.3 -5.6 +1.5 -3.9 -

XS1224710399 3.375% 29/12/49 (SUB) Ba1/BB+/BBB- 80.6 6.5 607 +1.0 -6.6 +1.2 -4.9 +

Gazprom (Buy) GAZPRU

XS0805582011 3.755% 15/03/17 Ba1*-/BB+/BBB- 100.6 3.4 334 +0.2 +0.9 +0.3 +2.6 +

XS0276455937 5.136% 22/03/17 Ba1*-/BB+/BBB- 102.2 3.4 332 +0.3 +0.6 +0.4 +2.3 +

XS0290581569 5.44% 02/11/17 Ba1*-/BB+/BBB- 103.4 3.6 359 +0.3 +0.6 +0.4 +2.4 +

XS0327237136 6.605% 13/02/18 Ba1*-/BB+/BBB- 105.1 4.1 411 +0.2 +0.5 +0.4 +2.2 +

XS0954912514 3.7% 25/07/18 Ba1*-/BB+/BBB- 99.4 4.1 414 +0.0 +0.0 +0.2 +1.7 +

XS1307381928 4.625% 15/10/18 Ba1*-/BB+/BBB- 101.3 4.3 426 +0.3 +0.2 +0.4 +2.0 -

XS0906946008 3.389% 20/03/20 Ba1*-/BB+/BBB- 95.1 4.8 475 +0.1 -0.4 +0.2 +1.3 +

XS1038646078 3.6% 26/02/21 Ba1*-/BB+/BBB- 94.3 5.0 484 +0.3 -1.2 +0.5 +0.5 +

XS0906949523 4.364% 21/03/25 Ba1*-/BB+/BBB- 94.1 5.3 469 +0.0 -1.0 +0.2 +0.7 +

Gazprom Neft (Hold) SIBNEF

XS0922296883 2.933% 26/04/18 Ba1*-/BB+/BBB- 96.8 4.6 467 +0.0 -0.5 +0.2 +1.3 +

MOL (Buy) MOLHB

XS0503453275 5.875% 20/04/17 --/BB/BBB- 105.0 1.6 180 +0.0 -0.1 +0.1 +1.6 +

Origin Energy (no rec) ORGAU 5Y CDS 278

XS1109795176 4% 16/09/74 (SUB) Ba2*-/BB/-- 67.6 16.5 1,627 +1.2 -18.1 +1.3 -16.4 -

Petrobras (no rec) PETBRA 5Y CDS 1,096

XS0982711631 2.75% 15/01/18 Ba3*-/BB/BB+ 82.8 13.7 1,356 +0.3 +2.0 +0.4 +3.7 +

XS0716979249 4.875% 07/03/18 Ba3*-/BB/BB+ 85.5 13.7 1,346 +0.5 +2.9 +0.7 +4.6 +

XS0835886598 3.25% 01/04/19 Ba3*-/BB/BB+ 74.5 14.1 1,385 +1.4 +1.9 +1.6 +3.6 +

XS0982711987 3.75% 14/01/21 Ba3*-/BB/BB+ 68.0 13.1 1,285 +1.5 +1.9 +1.7 +3.6 +

XS0716979595 5.875% 07/03/22 Ba3*-/BB/BB+ 71.9 13.0 1,264 +1.8 +2.3 +1.9 +4.0 +

XS0835890350 4.25% 02/10/23 Ba3*-/BB/BB+ 65.9 11.3 1,075 -4.3 +5.1 -4.1 +6.8 +

XS0982711714 4.75% 14/01/25 Ba3*-/BB/BB+ 66.1 11.1 1,041 +2.5 +5.8 +2.6 +7.5 +

Repsol (Buy) REPSM 5Y CDS 417

XS1207054666 3.875% PERP (SUB) Ba1*-/BB*-/BB+ 75.3 10.5 1,025 -2.7 -12.3 -2.5 -10.6 +

XS1207058733 4.5% 25/03/75 (SUB) Ba1*-/BB*-/BB+ 70.5 9.7 898 -0.8 -9.7 -0.7 -8.0 +

RWE (Hold) RWE 5Y CDS 134

XS1219498141 2.75% 21/04/75 (SUB) Ba1/BB+/BBB-*- 84.1 6.9 678 +0.2 -2.2 +0.4 -0.5 +

XS1219499032 3.5% 21/04/75 (SUB) Ba1/BB+/BBB-*- 72.7 7.8 723 -0.5 -6.5 -0.4 -4.8 +






ENG Santos (no rec) STOAU

XS0543710395 8.25% 22/09/70 (SUB) --/BB+/-- 86.8 17.6 1,809 +0.0 -12.5 +0.1 -10.8 -

Stork Technical Services (no rec) STTESE

XS0808757388 11% 15/08/17 Caa2/B-*+/-- 101.5 8.1 824 -0.5 -0.7 -0.4 +1.0 +

Veolia Environnement (Hold) VIEFP 5Y CDS 81

FR0011391820 4.45% PERP (SUB) Baa3/BB+/BB+ 102.4 3.3 349 +0.0 -1.2 +0.1 +0.5 -

Viridian (no rec) VRDLN

XS1179900102 7.5% 01/03/20 B2/--/B+ 106.4 5.6 556 +0.6 +4.0 +0.7 +5.7 -

IDU Alain Afflelou (Hold) AAFFP

XS1028956909 5.625% 15/04/19 B2/B/BB- 89.6 9.6 958 -0.4 -1.8 -0.2 -0.1 -

ALBA Group (Buy) ALBALN

DE000A1KQ177 8% 15/05/18 --/CCC+/-- 87.5 14.3 1,477 +0.9 -4.0 +1.1 -2.3 +

Aldesa (no rec) ALDESA

XS1028959754 7.25% 01/04/21 B2/--/B 71.7 15.5 1,536 -0.3 -8.8 -0.2 -7.1 -

Algeco Scotsman (no rec) ALGSCO

XS0836306471 9% 15/10/18 B3/--/-- 77.0 20.6 2,065 +0.9 -3.0 +1.0 -1.3 -

Almirall (no rec) ALMSM

XS1048307570 4.625% 01/04/21 Ba3/BB-/-- 103.6 3.4 328 +0.1 -0.6 +0.2 +1.1 -

ArcelorMittal (Hold) MTNA 5Y CDS 975

XS0559641146 5.875% 17/11/17 Ba2/BB/BB+ 99.2 6.7 651 +0.3 +2.5 +0.4 +4.2 +

XS0765621569 5.75% 29/03/18 Ba2/BB/BB+ 96.2 8.3 791 +0.4 +0.3 +0.6 +2.0 +

XS1214673565 FRN 09/04/18 Ba2/BB/BB+ 85.5 9.5 971 +0.2 -2.9 +0.3 -1.2 +

XS1048518358 3% 25/03/19 Ba2/BB/BB+ 86.2 8.5 830 -1.1 -0.5 -1.0 +1.3 +

XS1084568762 2.875% 06/07/20 Ba2/BB/BB+ 82.2 8.1 777 -0.2 +1.7 +0.0 +3.5 +

XS1214673722 3% 09/04/21 Ba2/BB/BB+ 79.1 8.6 802 +0.4 +1.3 +0.6 +3.1 +

XS1167308128 3.125% 14/01/22 Ba2/BB/BB+ 77.0 8.5 800 -0.9 +0.6 -0.8 +2.3 +

Ardagh Glass (Sell) ARGID 5Y CDS 456

XS1076715108 8.375% 15/06/19 (PIK) Caa2/CCC+/-- 94.7 10.5 1,080 -0.7 -6.3 -0.5 -4.6 -

XS0547019777 9.25% 15/10/20 Caa1/CCC+/-- 103.4 7.9 798 -0.1 -0.4 +0.0 +1.3 -

XS1082043388 4.25% 15/01/22 Ba3/B+/-- 98.1 4.6 446 -0.8 -2.5 -0.7 -0.8 +

Areva (Hold) CEIFP

FR0011125442 4.625% 05/10/17 --/B+/-- 98.3 6.3 587 -1.8 -3.1 -1.7 -1.4 +

FR0010817452 4.375% 06/11/19 --/B+/-- 89.9 7.6 762 -3.7 -11.4 -3.5 -9.7 +

FR0011560986 3.25% 04/09/20 --/B+/-- 85.6 7.3 701 -6.1 -9.5 -5.9 -7.8 +

FR0010941690 3.5% 22/03/21 --/B+/-- 84.3 7.3 721 -6.6 -11.3 -6.4 -9.6 -

FR0011791391 3.125% 20/03/23 --/B+/-- 81.6 6.4 614 -6.7 -8.5 -6.6 -6.8 +

FR0010804500 4.875% 23/09/24 --/B+/-- 84.6 7.4 691 -7.3 -13.5 -7.1 -11.8 +

Arkema (Hold) AKEFP

FR0012278539 4.75% PERP (SUB) Ba1/BB+/-- 96.4 5.7 562 +1.1 -1.6 +1.2 +0.1 +

Astaldi (no rec) ASTIM

XS1000393899 7.125% 01/12/20 B1/B+/B+ 96.6 8.0 797 +0.3 -1.8 +0.4 -0.1 +

Atalian (no rec) ATALIA

XS0873629223 7.25% 15/01/20 B2/B/-- 105.6 5.1 502 +0.4 -1.6 +0.6 +0.1 -

Autostrada B. V. V. P. (no rec) ABVVPS

XS1205716720 2.375% 20/03/20 --/BBB-/BB+ 101.0 2.2 216 +0.4 -0.4 +0.6 +1.3 -

Avis Budget Group (no rec) CAR

XS0898656037 6% 01/03/21 B1/B+/-- 100.7 5.8 587 -0.5 -1.7 -0.3 +0.0 +

Axalta Coating Systems (no rec) AXTA

XS0874859605 5.75% 01/02/21 Ba3/BB-/-- 103.5 4.6 462 +0.0 -0.2 +0.2 +1.5 -

Ball (no rec) BLL

XS1330978211 3.5% 15/12/20 Ba1/BB+/BB+ 102.7 3.0 287 +0.1 +0.5 +0.3 +2.2 -

XS1330978567 4.375% 15/12/23 Ba1/BB+/BB+ 102.5 4.0 364 -0.1 +0.4 +0.1 +2.1 +

Befesa Zinc (no rec) BEZINC

XS0625719777 8.875% 15/05/18 B1/B/-- 89.7 14.5 1,448 -0.4 -8.0 -0.2 -6.2 -






IDU Belden (no rec) BDC

XS0903269370 5.5% 15/04/23 (SUB) Ba3/B+/-- 96.8 6.1 577 -0.6 -4.0 -0.5 -2.3 -

Bilbao Luxembourg (no rec) BBAOLX

XS0983942656 10.5% 01/12/18 (PIK) Caa1/CCC+/-- 83.1 20.2 1,943 +7.0 -12.0 +7.1 -10.3 -

Bilfinger (Sell) GBFGR

DE000A1R0TU2 2.375% 07/12/19 --/BB+/-- 99.5 2.5 256 +0.1 -0.5 +0.2 +1.2 +

BMBG (no rec) BMBGBN

XS1056054551 FRN 15/10/20 Ba3/BB-/--

Bombardier (Sell) BBDBCN

XS0552915943 6.125% 15/05/21 B2/B/B 86.9 9.4 924 -2.7 +0.6 -2.5 +2.3 +

Buzzi Unicem (Hold) BZUIM

XS0835273235 6.25% 28/09/18 --/BB+/-- 111.1 2.0 207 +0.4 +0.1 +0.5 +1.8 -

CABB (Hold) CABBCO

XS1074935229 5.25% 15/06/21 B2/B/-- 97.3 5.9 577 +0.2 -1.9 +0.4 -0.2 -

XS1074935062 FRN 15/06/21 B2/B/--

XS1074935492 6.875% 15/06/22 Caa1/CCC+/-- 84.5 10.4 1,006 +0.5 -5.3 +0.6 -3.6 -

Celanese (no rec) CE

XS1110862148 3.25% 15/10/19 Ba2/BB+/-- 102.0 2.7 275 +0.0 -1.5 +0.2 +0.2 -

Cemex (no rec) CEMEX 5Y CDS 460

XS0752095686 9.875% 30/04/19 --/B+/BB-

XS1028960174 5.25% 01/04/21 --/B+/BB- 88.5 8.2 796 +2.4 -8.5 +2.5 -6.8 -

XS1028946348 4.75% 11/01/22 --/B+/BB- 84.3 8.2 800 +1.7 -7.9 +1.8 -6.2 -

XS1198002690 4.375% 05/03/23 --/B+/BB- 81.2 8.1 762 +1.8 -10.1 +1.9 -8.3 -

Cerba (no rec) CERBA

XS0877607076 7% 01/02/20 B2/B+/BB- 103.7 5.1 380 +0.1 +0.6 +0.3 +2.3 -

Chemours (no rec) CC

XS1226296603 6.125% 15/05/23 B1*-/BB-/-- 61.7 14.9 1,466 -2.8 -11.3 -2.6 -9.6 -

Ciments Francais (no rec) CMFP 5Y CDS 215

FR0010454090 4.75% 04/04/17 Ba2*+/BB/-- 103.9 1.4 149 +0.2 +0.1 +0.3 +1.8 +

CMA CGM (no rec) CMACG

XS1005207961 8.75% 15/12/18 B3/B-/-- 90.1 13.2 1,314 +1.3 -6.3 +1.4 -4.6 +

XS1244815111 7.75% 15/01/21 B3/B-/-- 77.1 14.5 1,435 +0.0 -10.4 +0.1 -8.7 +

CMC di Ravenna (Buy) CMCRAV

XS1088811432 7.5% 01/08/21 B2/B/-- 83.7 11.8 1,151 +0.5 -1.3 +0.6 +0.4 +

Constellium (no rec) CSTM

XS1064882316 4.625% 15/05/21 B3/B/-- 82.0 9.1 892 -1.7 +6.8 -1.6 +8.5 +

XS1151723282 7% 15/01/23 B3/B/-- 86.5 9.6 947 -1.4 +7.9 -1.3 +9.6 +

ConvaTec (no rec) CONVAT 5Y CDS 237

XS0568044555 10.875% 15/12/18 B3/B/-- 103.2 7.3 499 +0.4 +1.1 +0.5 +2.8 -

Crown (no rec) CCK

XS1084050316 4% 15/07/22 Ba2/BB/-- 102.3 3.6 340 +0.0 -1.2 +0.2 +0.6 +

XS1227287221 3.375% 15/05/25 Ba2/BB/-- 93.0 4.3 377 +0.4 -0.4 +0.5 +1.3 +

Dry Mix Solutions (no rec) DRYMIX

XS1076527875 FRN 15/06/21 B1/B/-- 97.5 4.7 482 +0.1 -0.1 +0.2 +1.6 -

Eco-Bat Technologies (no rec) ECOBAT

XS0754797438 7.75% 15/02/17 B3/CCC+/-- 96.3 12.0 1,187 +0.3 -0.7 +0.4 +1.0 -

Empark (no rec) EMPARK

XS0982711045 6.75% 15/12/19 B1/BB/-- 105.5 4.5 425 +0.1 -1.5 +0.3 +0.2 -

XS0982712951 FRN 15/12/19 B1/BB/--

Esterline Technologies (no rec) ESL

XS1212668062 3.625% 15/04/23 Ba2/BB+/-- 93.3 4.8 444 -0.9 -3.7 -0.8 -1.9 -

Faenza (no rec) FAENNZ

XS0955817738 8.25% 15/08/21 Caa1/CCC+/-- 107.0 6.1 586 +0.2 +0.0 +0.3 +1.8 -






IDU Finmeccanica (no rec) FNCIM 5Y CDS 246

XS0861828407 4.375% 05/12/17 Ba1/BB+/BB+ 106.2 1.0 114 +0.1 +0.4 +0.3 +2.2 +

XS0182242247 5.75% 12/12/18 Ba1/BB+/BB+ 112.0 1.5 157 +0.1 +0.1 +0.2 +1.8 +

XS0999654873 4.5% 19/01/21 Ba1/BB+/BB+ 109.2 2.6 245 +0.2 +0.5 +0.3 +2.3 +

XS0458887030 5.25% 21/01/22 Ba1/BB+/BB+ 112.3 3.0 282 +0.3 -0.8 +0.4 +0.9 +

XS0215093534 4.875% 24/03/25 Ba1/BB+/BB+ 109.3 3.7 317 +0.5 -1.5 +0.6 +0.2 +

FMC (Hold) FMEGR 5Y CDS 89

XS0675221419 6.5% 15/09/18 Ba2/BB+/BB 113.5 1.3 138 +0.1 -0.5 +0.3 +1.2 +

XS0723509104 5.25% 31/07/19 Ba2/BB+/BB 113.2 1.4 147 +0.2 -0.5 +0.3 +1.3 +

XS0576395478 5.25% 15/02/21 Ba2/BB+/-- 115.3 2.0 199 +0.3 -0.6 +0.5 +1.1 +

Fresenius (Hold) FREGR 5Y CDS 89

XS1013954646 2.375% 01/02/19 Baa3/BB+/BB+ 105.0 0.7 83 +0.3 -0.1 +0.4 +1.7 +

XS0759200321 4.25% 15/04/19 Baa3/BB+/BB+ 111.1 0.8 86 +0.4 -0.1 +0.5 +1.6 +

XS0873432511 2.875% 15/07/20 Baa3/BB+/BB+ 106.7 1.3 132 +0.1 -0.3 +0.2 +1.4 +

XS1013955379 3% 01/02/21 Baa3/BB+/BB+ 106.9 1.6 150 +0.3 -0.3 +0.4 +1.5 +

XS1026109204 4% 01/02/24 Baa3/BB+/BB+ 113.7 2.2 174 +0.4 +0.2 +0.6 +1.9 +

Gates Global (no rec) GATGLO

XS1078819726 5.75% 15/07/22 Caa2/B/-- 73.6 11.8 1,149 +0.5 +2.8 +0.6 +4.5 -

GCS (no rec) GCLSYS

XS0992167436 6.5% 15/11/18 B2/B*+/-- 103.0 4.8 172 -0.1 +0.1 +0.1 +1.8 -

Greif (no rec) GEF

XS0647108264 7.375% 15/07/21 Ba3/BB-/-- 114.7 4.4 424 +0.0 -0.9 +0.2 +0.8 -

Guala Closures (Hold) GCLIM

XS0619675753 9.375% 15/04/18 B3/CCC+/-- 103.3 4.3 321 +0.0 +0.1 +0.1 +1.8 -

XS0852482941 FRN 15/11/19 B1/B/--

Haniel (Hold) HANIEL 5Y CDS 105

XS0482703286 5.875% 01/02/17 Ba1/BB+/-- 104.6 1.2 135 +0.0 +0.2 +0.1 +1.9 +

XS0743603358 6.25% 08/02/18 Ba1/BB+/-- 110.5 1.0 113 +0.1 +0.1 +0.3 +1.8 +

Hapag-Lloyd (no rec) HPLGR

XS0974356262 7.75% 01/10/18 Caa1/B-/-- 100.7 7.5 749 +0.3 -1.8 +0.5 -0.1 -

XS1144214993 7.5% 15/10/19 Caa1/B-/-- 101.6 6.8 699 -0.9 -1.1 -0.8 +0.6 +

HeidelbergCement (Hold) HEIGR 5Y CDS 247

XS0458230322 8% 31/01/17 Ba1/--/BB+ 106.9 1.0 110 +0.3 +0.0 +0.4 +1.7 +

DE000A0TKUU3 5.625% 04/01/18 Ba1/--/BB+ 108.0 1.4 152 +0.3 +0.2 +0.5 +1.9 +

XS0686703736 9.5% 15/12/18 Ba1/--/BB+ 121.2 1.9 200 +0.1 -0.7 +0.3 +1.0 +

XS1044496203 2.25% 12/03/19 Ba1/--/BB+ 101.9 1.7 174 +0.7 -1.0 +0.8 +0.7 +

XS0458685913 8.5% 31/10/19 Ba1/--/BB+ 121.7 2.4 247 +0.6 -1.5 +0.7 +0.2 +

XS0478803355 7.5% 03/04/20 Ba1/--/BB+ 119.9 2.5 248 +0.5 -1.7 +0.6 +0.0 +

XS0985874543 3.25% 21/10/20 Ba1/--/BB+ 105.2 2.1 205 +0.8 -0.9 +0.9 +0.8 +

XS1002933072 3.25% 21/10/21 Ba1/--/BB+ 105.1 2.3 216 +0.8 -1.0 +0.9 +0.7 +

Heidelberger Druck (no rec) HDDGR

DE000A14J7A9 8% 15/05/22 Caa1/CCC+/-- 96.6 8.7 855 -1.3 -3.0 -1.1 -1.3 +

HomeVi (no rec) DMVIFR

XS1093814116 6.875% 15/08/21 B2/B/-- 103.4 5.9 588 +0.0 -1.7 +0.1 +0.1 -

Horizon Holdings (no rec) VERALL

XS1265903937 5.125% 01/08/22 B1/B+/-- 102.2 4.6 459 +0.1 -0.5 +0.3 +1.2 -

XS1265973047 7.25% 01/08/23 B3/B-/-- 102.3 6.7 666 -0.1 -0.7 +0.1 +1.0 -

Huntsman (no rec) HUN 5Y CDS 524

XS1056202762 5.125% 15/04/21 B1/B/-- 90.9 7.3 719 -0.7 -0.5 -0.6 +1.2 -

XS1207638732 4.25% 01/04/25 B1/B/-- 80.0 7.3 679 -1.5 -0.3 -1.4 +1.4 -

Hurtigruten (no rec) HRGNO

XS1180324037 7.5% 01/02/22 B2/B/-- 101.6 7.1 710 +0.1 -1.3 +0.2 +0.5 -

IMS Health (no rec) RX

XS1207120475 4.125% 01/04/23 B2/B+/-- 94.9 5.0 469 +0.2 -2.5 +0.4 -0.8 -






IDU Ineos (Buy) INEGRP 5Y CDS 102

XS0928189777 6.5% 15/08/18 B3/B-/-- 98.9 7.1 713 -0.2 -1.7 +0.0 +0.0 +

XS0982710740 5.75% 15/02/19 B3/B-/-- 96.7 7.1 711 -0.9 -3.1 -0.7 -1.4 +

XS1117296209 4% 01/05/23 Ba3/BB-/-- 92.4 5.3 498 -1.1 -1.7 -1.0 +0.0 +

Innovia Films (no rec) INNOGB

XS1032974609 FRN 31/03/20 B2/B/--

Isolux (no rec) ISOLUX

XS1046702293 6.625% 15/04/21 --/B-/B*- 28.5 40.8 4,062 -10.8 +10.1 -10.7 +11.8 -

ista (Hold) ISTAGR

XS0929666070 5% 30/04/20 Ba3/B+/-- 102.9 3.5 270 +0.3 +0.0 +0.4 +1.7 -

XS0929660974 6.875% 30/04/21 (SUB) B3/B-/-- 105.3 5.2 492 +0.4 -0.1 +0.6 +1.6 +

Italcementi (Buy) ITCIT

XS0893201433 6.125% 21/02/18 Ba3*+/BB/-- 108.8 1.8 188 +0.5 +0.9 +0.7 +2.6 -

XS0496716282 6.625% 19/03/20 Ba3*+/BB/-- 114.7 2.8 284 +0.6 -1.0 +0.7 +0.7 +

Kerneos (no rec) KERNOS

XS1040429455 FRN 01/03/21 B2/B+/--

XS1040428721 5.75% 01/03/21 B2/B+/-- 98.6 6.1 603 -0.3 -2.5 -0.2 -0.8 -

Kion (Hold) KIONGR

XS0889217716 6.75% 15/02/20 Ba2/BB+/-- 103.8 4.7 473 +0.0 +0.4 +0.1 +2.1 +

Klöckner Pentaplast (no rec) KPERST

XS1222584325 7.125% 01/11/20 Caa1/CCC+/-- 100.5 6.9 705 +0.2 -0.8 +0.3 +0.9 -

KP Germany Erste (no rec) KPERST

XS1222584325 7.125% 01/11/20 Caa1/CCC+/-- 100.5 6.9 705 +0.2 -0.8 +0.3 +0.9 -

KraussMaffei (no rec) KRAUSS

XS0864385264 8.75% 15/12/20 B1/B*+/-- 108.0 +0.7 +1.6 +0.9 +3.3 -

Labco (no rec) LABFP

XS1117292984 6.25% 01/07/22 B2/B+/B+ 102.5 5.7 560 +0.2 -0.8 +0.4 +0.9 +

XS1117292802 FRN 01/07/22 B2/B+/B+ 100.0 5.1 523 +0.2 -0.4 +0.3 +1.3 -

XS1268471494 8.25% 01/07/23 Caa1/B-/CCC+ 97.3 8.8 836 +0.3 -3.1 +0.4 -1.4 -

Lecta (Hold) LECTA

XS0780141999 FRN 15/05/18 B2/B/--

XS0780068036 8.875% 15/05/19 B2/B/-- 103.1 7.5 755 +0.2 -1.9 +0.4 -0.2 -

Loxam (no rec) LOXAM

XS1089828450 4.875% 23/07/21 --/BB-/-- 101.8 4.4 440 -0.3 -1.3 -0.1 +0.4 -

XS1089828880 7% 23/07/22 --/B/-- 100.9 6.8 678 -0.4 -0.8 -0.2 +0.9 -

LSF9 Balta Issuer (no rec) BALTAL

XS1265917481 7.75% 15/09/22 B2/B/-- 102.0 7.3 722 -0.7 -1.8 -0.5 +0.0 -

Maccaferri (no rec) OFFMAC

XS1074596344 5.75% 01/06/21 B2/--/B 87.8 8.8 860 -1.0 -4.9 -0.8 -3.1 +

Manutencoop (Hold) MANTEN

XS0808635352 8.5% 01/08/20 B3/B*-/-- 81.0 14.5 1,440 -1.0 -1.5 -0.9 +0.2 +

Medi-Partenaires (no rec) MEDIFP

XS0924046682 7% 15/05/20 B2/B/-- 105.8 4.9 363 +0.1 -0.1 +0.3 +1.6 +

Metsä Board (no rec) METSA

FI4000085550 4% 13/03/19 Ba2/BB/-- 107.1 1.7 178 -0.4 -0.6 -0.3 +1.1 -

New World Resources (no rec) NWRLN

XS1107303148 8% 07/04/20 (PIK) Caa2/CCC/-- 6.7 112.3

11,369

+1.7 -16.6 +1.8 -14.9 -

Nexans (no rec) NEXFP

FR0010465427 5.75% 02/05/17 --/BB-/-- 104.4 2.4 231 +0.2 -0.4 +0.3 +1.4 +

FR0011376201 4.25% 19/03/18 --/BB-/-- 103.5 2.6 271 +0.0 -0.7 +0.2 +1.0 -

Norske Skog (no rec) NSINO 5Y CDS 5,939

XS0307552355 7% 26/06/17 Ca/C*-/-- 18.7 -29.7 -38.6 -29.6 -36.9 -

XS1181663292 11.75% 15/12/19 Caa2/CC*-/-- 61.9 -2.4 -9.4 -2.3 -7.7 -

XS1193909154 8% 24/02/21 Caa3/C*-/-- 26.1 -2.0 -0.6 -1.9 +1.1 -






IDU Novacap (no rec) NOVAFR

XS1065165455 FRN 01/05/19 B2/B/-- 99.8 5.0 512 +0.0 -0.5 +0.1 +1.2 -

Novafives (no rec) NVFVES

XS1028951421 FRN 30/06/20 B2/B+/-- 79.8 9.6 973 -0.3 -5.4 -0.2 -3.7 -

XS1028950886 4.5% 30/06/21 B2/B+/-- 80.5 9.2 904 -0.6 -3.9 -0.4 -2.2 -

Nyrstar (no rec) NYRBB

XS1107268135 8.5% 15/09/19 B3*-/B-*+/-- 83.7 15.2 1,453 +2.3 +2.5 +2.5 +4.2 +

Oberthur Technologies (no rec) OCSFP

XS0979448494 9.25% 30/04/20 Caa1/CCC/CCC+*+ 106.1 6.7 671 +0.2 -1.6 +0.4 +0.1 -

Obrascon (no rec) OHLSM

XS0760705631 7.625% 15/03/20 B1/--/BB- 99.0 7.9 795 -0.6 +0.9 -0.4 +2.6 -

XS1043961439 4.75% 15/03/22 B1/--/BB- 71.9 11.1 1,106 -2.4 -11.4 -2.2 -9.7 +

XS1206510569 5.5% 15/03/23 B1/--/BB- 76.2 10.4 1,005 -1.6 -8.3 -1.4 -6.6 -

Ovako (no rec) OVAKOA

XS1028954367 6.5% 01/06/19 B3/B/-- 63.1 23.1 2,304 +0.1 -9.6 +0.3 -7.9 -

Owens-Illinois (no rec) OI 5Y CDS 120

XS0542593792 6.75% 15/09/20 Ba3/BB/-- 113.2 3.7 362 -0.4 -2.4 -0.3 -0.6 +

XS0908230781 4.875% 31/03/21 (SUB) Ba3/BB/-- 105.9 3.6 354 -0.2 -2.6 +0.0 -0.8 +

Paprec (no rec) PAPREC

XS1207101418 5.25% 01/04/22 B1/B+/-- 94.9 6.3 609 -0.5 -4.4 -0.4 -2.7 -

XS1207105161 7.375% 01/04/23 B2/B-/-- 93.5 8.6 835 -0.2 -4.5 -0.1 -2.8 -

Paroc (no rec) PAROCG

XS1028955174 FRN 15/05/20 B2/B/-- 94.5 6.6 680 +0.3 -0.5 +0.4 +1.2 -

XS1028955505 6.25% 15/05/20 B2/B/-- 94.9 7.8 768 +0.2 -0.8 +0.3 +0.9 -

Perstorp (no rec) PERHOL

XS0855179536 9% 15/05/17 B2/CCC+/-- 98.3 10.7 1,064 +0.1 -1.6 +0.3 +0.1 -

Pfleiderer (no rec) PFLEID

DE000A12T176 7.875% 01/08/19 B2/B-/-- 103.9 6.3 633 +0.4 +0.3 +0.5 +2.0 -

Phoenix (Hold) PHARGR

XS0935786789 3.125% 27/05/20 --/BB+/BB 103.1 2.4 237 +0.4 +0.6 -

XS1091770161 3.625% 30/07/21 --/BB+/BB 102.9 3.1 293 +0.5 -2.4 +0.6 -0.7 +

Portucel (no rec) PTIPL

PTPTIHOT0014 5.375% 15/05/20 Ba3/BB/-- 104.1 3.9 311 -0.1 -0.7 +0.0 +1.0 -

PPC (no rec) PPCGA

XS1063837311 4.75% 01/05/17 --/CCC-/-- 88.0 16.2 1,588 -0.5 -1.0 -0.4 +0.7 -

XS1063837741 5.5% 01/05/19 --/CCC-/-- 76.7 14.6 1,491 -0.7 -6.3 -0.6 -4.6 -

Progroup (no rec) PROGRP

DE000A161GE9 FRN 01/05/22 B1/B+/-- 100.3 4.2 436 +0.0 +0.3 +0.1 +2.0 -

DE000A161GC3 5.125% 01/05/22 B1/B+/-- 103.2 4.4 432 +0.0 -1.2 +0.2 +0.5 -

PSPC Escrow (no rec) PAH

XS1175224747 6% 01/02/23 Caa1/B+/-- 76.5 11.0 1,064 -4.5 -9.9 -4.4 -8.2 -

Rain Commodities (no rec) RCOLIN

XS0867945197 8.5% 15/01/21 B3/B+/-- 73.1 17.4 1,669 +0.7 -1.9 +0.9 -0.2 -

Rexam (Hold) REXLN 5Y CDS 55

XS0307868744 6.75% 29/06/67 (SUB) Ba2*-/BB/-- 99.8 7.0 703 +0.1 -0.2 +0.2 +1.5 -

Rexel (no rec) RXLFP

XS0908821639 5.125% 15/06/20 Ba3/BB/BB 104.4 3.3 247 +0.1 +0.2 +0.2 +1.9 -

XS1238996018 3.25% 15/06/22 Ba3/BB/BB 95.5 4.1 385 -0.8 -3.2 -0.6 -1.5 +

Rheinmetall (Hold) RHMGR 5Y CDS 153

XS0542369219 5.25% 22/09/17 Ba1/--/-- 106.5 1.2 137 +0.1 +0.0 +0.2 +1.7 +

Salini Impregilo (no rec) IPGIM

XS0956262892 6.125% 01/08/18 --/BB+/BB 106.1 3.7 367 +0.2 -0.1 +0.3 +1.6 -

Sappi (Buy) SAPSJ

XS1117298676 3.375% 01/04/22 Ba2/BB/-- 94.5 4.5 422 +0.6 -1.5 +0.7 +0.3 +






IDU Schmolz & Bickenbach (Hold) STLNSW

DE000A1G4PS9 9.875% 15/05/19 B2/B+/-- 93.1 12.7 1,260 -0.4 +8.4 -0.3 +10.1 -

Sealed Air Corporation (no rec) SEE

XS1247796185 4.5% 15/09/23 B1/BB/-- 103.1 4.0 370 -0.1 -0.1 +0.0 +1.6 +

Senvion (no rec) SENVIO

XS1223808749 6.625% 15/11/20 B2/B+/-- 102.8 5.7 580 +0.2 +0.4 +0.4 +2.1 -

SGD Group (no rec) GOBAIN

XS1028957469 5.625% 15/05/19 --/B/B- 98.3 6.2 632 -0.1 -3.6 +0.1 -1.9 +

SGL (no rec) SGLGR

XS1002933403 4.875% 15/01/21 B1/BB-/-- 95.8 6.0 584 +0.2 -2.9 +0.3 -1.2 +

SIG Combibloc (no rec) SIGCBL

XS1176586862 7.75% 15/02/23 Caa1/B-/-- 102.8 7.0 699 -0.5 -1.1 -0.4 +0.6 +

Smurfit Kappa (Hold) SKGID 5Y CDS 158

XS0828002807 5.125% 15/09/18 Ba1/BB+/BB+ 108.3 1.6 170 +0.6 +0.0 +0.8 +1.8 -

XS0880132989 4.125% 30/01/20 Ba1/BB+/BB+ 108.0 2.1 207 +0.2 -0.3 +0.4 +1.4 +

XS0832432446 FRN 15/10/20 Ba1/BB+/BB+ 104.9 2.3 247 +0.4 -1.8 +0.5 -0.1 -

XS1074396927 3.25% 01/06/21 Ba1/BB+/BB+ 103.0 2.7 256 +0.5 -1.6 +0.6 +0.1 +

XS1117298759 2.75% 01/02/25 Ba1/BB+/BB+ 93.9 3.6 304 +0.2 -2.2 +0.4 -0.5 -

Solvay (Hold) SOLBBB 5Y CDS 166

XS0992293570 4.199% PERP (SUB) Ba1/BB/BB+ 94.3 6.2 628 -0.3 -4.3 -0.1 -2.6 -



XS1323897725 5.869% PERP (SUB) Ba1/BB/BB+ 94.0 6.9 643 -1.2 -4.5 -1.0 -2.7 +

SPCM (no rec) SNFF

XS1221105759 2.875% 15/06/23 --/BB+/-- 93.6 3.9 357 -0.4 -2.0 -0.3 -0.2 +

SSAB (no rec) SSABAS

XS1055515412 3.875% 10/04/19 --/BB-*-/-- 88.3 8.7 833 +1.3 -2.1 +1.4 -0.4 -

Stena (no rec) STENA 5Y CDS 834

XS0285176458 6.125% 01/02/17 B2/BB/-- 102.0 4.1 425 +0.2 +0.0 +0.4 +1.7 +

XS0495219874 7.875% 15/03/20 B2/BB/-- 98.5 8.3 835 +0.1 -7.8 +0.3 -6.1 +

Stora Enso (Hold) STERV 5Y CDS 255

XS0830688411 5% 19/03/18 Ba2/BB/-- 106.9 1.8 183 +0.1 -1.0 +0.2 +0.7 -

XS0754290459 5.5% 07/03/19 Ba2/BB/-- 110.7 2.0 204 +0.0 -0.7 +0.1 +1.0 -

Swissport (no rec) SWPORT

XS1331156684 6.75% 15/12/21 B1/B/-- 102.1 6.2 622 -1.3 -0.8 -1.2 +1.0 -

XS1331156841 9.75% 15/12/22 Caa1/CCC+/-- 99.8 9.8 962 -1.0 -0.9 -0.9 +0.9 -

Synthos (no rec) SNSPW

XS1115183359 4% 30/09/21 Ba2/BB/-- 98.9 4.3 409 +0.1 +0.1 +0.3 +1.8 +

Techem (Hold) TCHEN 5Y CDS 176

XS0783934911 6.125% 01/10/19 Ba3/BB-/BB 104.9 2.7 24 +0.3 +0.4 +0.5 +2.2 +

XS0783934838 7.875% 01/10/20 B3/B/B 106.7 3.7 363 +0.2 +0.2 +0.4 +1.9 -

ThyssenKrupp (Hold) TKAGR 5Y CDS 415

DE000A1MA9H4 4.375% 28/02/17 Ba1/BB/BB+ 103.2 1.5 145 +0.0 +0.1 +0.1 +1.8 +

DE000A1R08U3 4% 27/08/18 Ba1/BB/BB+ 104.9 2.1 219 -0.2 +0.0 -0.1 +1.7 +

DE000A1R0410 3.125% 25/10/19 Ba1/BB/BB+ 102.7 2.4 240 -0.5 -0.4 -0.4 +1.3 +

DE000A14J579 1.75% 25/11/20 Ba1/BB/BB+ 97.6 2.3 225 +0.0 +0.5 +0.2 +2.2 +

DE000A14J587 2.5% 25/02/25 Ba1/BB/BB+ 92.8 3.5 293 -0.7 -2.1 -0.5 -0.4 +

Titan Cement (no rec) TITKGA

XS1086071146 4.25% 10/07/19 --/BB/-- 99.3 4.6 457 +1.0 +0.4 +1.1 +2.1 -

TMF Group (Hold) TMFG

XS0860995355 FRN 01/12/18 B1/B/--

XS0860984235 9.875% 01/12/19 Caa1/CCC+/-- 107.5 5.4 +0.3 +0.7 +0.4 +2.5 -

Trinseo (no rec) TRINSE

XS1220246521 6.375% 01/05/22 B3/--/-- 95.2 7.4 717 -0.8 -3.7 -0.6 -1.9 -






IDU Unilabs (no rec) UNILAB

XS0943769470 8.5% 15/07/18 B3/B/-- 103.8 5.3 58 +0.2 +0.6 +0.3 +2.3 -

XS0943769041 12% 15/01/19 (PIK) Caa2/CCC+/-- 105.5 6.8 619 +0.2 +0.9 +0.4 +2.7 -

Valeant (no rec) VRXCN

XS1205619288 4.5% 15/05/23 B1/B-/-- 84.8 7.3 693 -1.5 -1.8 -1.3 -0.1 -

Vallourec (no rec) VKFP

FR0011149947 4.25% 14/02/17 --/BB-/-- 99.3 5.2 508 +8.5 +0.8 +8.6 +2.5 +

FR0011302793 3.25% 02/08/19 --/BB-/-- 77.4 11.8 1,158 +15.2 -2.9 +15.3 -1.2 +

FR0012188456 2.25% 30/09/24 --/BB-/-- 62.7 8.6 805 +9.3 +4.2 +9.5 +5.9 +

Verisure (no rec) VERISR

XS1310477895 6% 01/11/22 B1/--/-- 102.7 5.3 533 -0.6 -0.2 -0.4 +1.5 -

Voith (Hold) VOITGR 5Y CDS 116

XS0306488627 5.375% 21/06/17 Ba1/--/-- 104.7 2.0 204 +0.2 -0.1 +0.3 +1.6 +

VWR (no rec) VWRINT

XS1207387801 4.625% 15/04/22 B3/B+/-- 93.9 5.8 563 +0.0 -3.8 +0.1 -2.1 -

Waste Italia (no rec) WASTEI

XS1139056037 10.5% 15/11/19 Caa2/--/CCC 39.8 52.6 4,659 +0.3 -7.8 +0.5 -6.1 -

WFS Global (no rec) WFSGLB

XS1252776759 9.5% 15/07/22 B2/B/-- 102.2 9.2 890 +1.2 -1.9 +1.4 -0.2 -

Wienerberger (Hold) WIEAV 5Y CDS 293

DE000A0G4X39 6.5% PERP (SUB) B1/--/-- 100.3 6.6 637 +0.4 -0.9 +0.5 +0.8 -

AT0000A100E2 4% 17/04/20 Ba2/--/-- 106.9 2.3 228 +0.4 +0.2 +0.5 +1.9 +

DE000A1ZN206 6.5% PERP (SUB) B1/--/-- 100.5 5.3 516 +0.3 -0.6 +0.5 +1.1 -

Wittur (no rec) WITTUR

XS1188024548 8.5% 15/02/23 Caa1/CCC+/-- 94.5 9.8 936 -0.1 -3.1 +0.0 -1.4 -

Worldpay Group (no rec) WPGLN

XS1319701451 3.75% 15/11/22 Ba2/BB/-- 101.0 3.6 333 +0.0 -0.8 +0.1 +0.9 -

Xella (Hold) XELLA

XS1071440991 FRN 01/06/19 B1/B+/--

XPO Logistics (no rec) XPO

XS1117295060 5.75% 15/06/21 B2/B-/-- 89.2 8.3 820 -0.2 -4.2 -0.1 -2.5 -

Yioula (no rec) YIOULA

XS1069662812 8.5% 15/05/19 B3/CC/-- 92.8 11.5 1,131 +0.5 +0.3 +0.6 +2.0 -

TMT Altice (Buy) ALTICE

XS0864611610 8% 15/12/19 (SUB) B1/BB-/-- 104.0 5.6 398 +0.1 +0.5 +0.2 +2.2 -

XS1003905152 6.5% 15/01/22 B1/BB-/-- 103.7 5.5 550 -0.2 -0.4 +0.0 +1.3 -

XS1061642317 7.25% 15/05/22 B3/B/-- 93.4 8.6 847 -1.1 +1.2 -0.9 +2.9 +

XS1181246775 5.25% 15/02/23 B1/BB-/-- 97.0 5.8 551 -0.5 -2.3 -0.3 -0.6 +

XS0946155693 9% 15/06/23 B3/B-/-- 110.6 6.1 611 +0.0 -0.3 +0.2 +1.4 -

XS1117300241 6.25% 15/02/25 B3/B/-- 83.4 8.9 852 -1.2 -1.0 -1.0 +0.7 +

Bite Finance (no rec) BITEF

XS0883689753 FRN 15/02/18 B3/B/B-

Cegedim (no rec) CGMFP

XS0906984272 6.75% 01/04/20 --/BB-/-- 105.4 5.0 372 +0.1 -0.2 +0.3 +1.5 -

Cellnex Telecom (no rec) CLNXSM

XS1265778933 3.125% 27/07/22 --/BB+/BBB- 96.1 3.9 358 +0.2 +0.2 +0.4 +1.9 +

Eircom (no rec) EIRCMF

XS0927671080 9.25% 15/05/20 B3/B/B+ 105.8 5.2 498 -0.2 -0.8 -0.1 +0.9 -

Interoute (no rec) INTERO

XS1298004612 7.375% 15/10/20 B1/B+/-- 103.4 6.1 640 -1.3 +0.0 -1.1 +1.7 -

InterXion (no rec) INXN

XS0946728564 6% 15/07/20 B2/BB-/-- 104.4 4.7 456 +0.0 -0.9 +0.1 +0.8 -

KPN (Buy) KPN 5Y CDS 89

XS0903872355 6.125% PERP (SUB) Ba2/BB/BB 103.4 4.7 484 +0.4 -2.1 +0.5 -0.3 +






TMT Lawson Software (no rec) LWSN

XS1207004729 5.75% 15/05/22 Caa1/--/-- 85.3 8.8 866 -2.7 -3.4 -2.5 -1.6 -

Matterhorn Mobile (Sell) MATTER

XS1219465728 3.875% 01/05/22 B2/B/-- 90.5 5.8 552 -0.3 -0.4 -0.2 +1.3 -

XS1219467930 FRN 01/05/22 B2/B/-- 92.6 5.2 541 +0.1 -0.4 +0.2 +1.3 -

XS1219475792 4.875% 01/05/23 Caa1/CCC+/-- 83.9 7.9 753 -0.4 +0.4 -0.2 +2.1 +

Nokia (Hold) NOKIA 5Y CDS 154

XS0411735482 6.75% 04/02/19 Ba2/BB+/BB 116.7 1.1 120 +0.0 +0.5 +0.2 +2.2 +

Numericable-SFR (Buy) NUMFP

XS1028956222 5.375% 15/05/22 B1/B+/-- 100.6 5.1 524 -1.9 -1.0 -1.8 +0.7 +

XS1028956149 5.625% 15/05/24 B1/B+/-- 99.5 5.6 531 -2.1 -1.2 -2.0 +0.5 +

Oi (Hold) OIBRBZ

XS0215828913 4.375% 24/03/17 B1/BB+/BB 73.4 37.7 3,739 +4.2 +17.7 +4.3 +19.4 +

XS0441479804 5.242% 06/11/17 B1/BB+/BB 64.6 30.5 3,572 +0.4 -3.7 +0.5 -2.0 -

XS0569301327 5.125% 15/12/17 Ba3/BB+/BB 64.1 35.0 3,436 +3.2 +15.5 +3.4 +17.2 -

XS0843939918 5.875% 17/04/18 B1/BB+/BB 58.7 36.8 3,622 +5.1 +15.0 +5.2 +16.7 +

XS0462994343 5% 04/11/19 B1/BB+/BB 58.0 23.2 2,289 +3.0 +6.2 +3.1 +7.9 +

XS0927581842 4.625% 08/05/20 B1/BB+/BB 53.1 23.3 2,303 +7.3 +13.2 +7.4 +14.9 -

XS1245244402 5.625% 22/06/21 Ba2/BB+/BB 51.7 21.9 2,157 +3.0 +14.0 +3.2 +15.7 -

XS0221854200 4.5% 16/06/25 B1/BB+/BB 50.3 14.7 1,405 +2.2 +6.1 +2.3 +7.8 +

OTE Hellenic Telecom (Hold) HTOGA 5Y CDS 421

XS0885718782 7.875% 07/02/18 Caa2/B+/-- 104.5 5.5 563 -0.2 -1.7 -0.1 +0.1 -

XS1327539976 4.375% 02/12/19 Caa2/B+/-- 98.0 5.0 503 +0.0 -1.2 +0.1 +0.5 -

XS1086785182 3.5% 09/07/20 Caa2/B+/-- 92.6 5.4 544 -1.0 -0.9 -0.8 +0.8 +

PagesJaunes (no rec) PAJFP

XS0626691447 8.875% 01/06/18 B3/--/B 64.1 31.0 3,205 -3.0 -12.1 -2.9 -10.4 -

PLAY (no rec) PFOURS

XS0982710153 5.25% 01/02/19 B1/B/-- 102.4 4.1 410 +0.2 +0.3 +0.3 +2.0 +

XS0982709494 6.5% 01/08/19 B2/CCC+/B- 103.6 5.1 486 +0.4 -0.2 +0.5 +1.5 +

XS1028947403 7.75% 28/02/20 (PIK) Caa1/CCC+/-- 101.4 7.2 733 +0.3 -0.5 +0.4 +1.2 -

Polkomtel (no rec) POLKOM 5Y CDS 59

XS0731129747 11.75% 31/01/20 B2/BB-/--

RCS & RDS (Buy) CBLCSY

XS0954673777 7.5% 01/11/20 B1/B+/-- 104.5 5.8 559 +0.9 -0.9 +1.1 +0.9 +

SOFTBANK (no rec) SOFTBK

XS0918548644 4.625% 15/04/20 Ba1/BB+/-- 103.6 3.8 373 +0.5 -2.0 +0.6 -0.3 -

XS1266662763 4% 30/07/22 Ba1/BB+/-- 96.1 4.7 448 -0.5 -5.3 -0.4 -3.6 +

XS1266662334 4.75% 30/07/25 Ba1/BB+/-- 92.6 5.8 525 +0.3 -4.6 +0.4 -2.9 -

XS1266661013 5.25% 30/07/27 Ba1/BB+/-- 89.7 6.6 588 -1.1 -7.2 -0.9 -5.5 +

TDC (Hold) TDCDC 5Y CDS 148

XS1195581159 3.5% 26/02/15 (SUB) Ba2/BB/BB 88.2 6.4 625 -0.8 -6.4 -0.7 -4.7 -

TeamSystem (Hold) TITANL

XS0808638372 7.375% 15/05/20 B2/B-/-- 103.9 5.7 407 +0.1 +0.3 +0.3 +2.0 +






TMT Telecom Italia (no rec) TITIM 5Y CDS 215

XS0831389985 4.5% 20/09/17 Ba1/BB+/BBB- 106.3 0.7 77 +0.2 +0.4 +0.3 +2.1 +

XS0630463965 4.75% 25/05/18 --/BB+/BBB- 108.1 1.2 134 +0.1 -0.4 +0.2 +1.3 +

XS0794393396 6.125% 14/12/18 --/BB+/BBB- 113.0 1.5 160 +0.1 -0.5 +0.2 +1.2 +

XS0184373925 5.375% 29/01/19 --/BB+/BBB- 110.9 1.6 175 +0.1 -0.8 +0.2 +0.9 +

XS0868458653 4% 21/01/20 --/BB+/BBB- 106.9 2.2 222 +0.1 -1.7 +0.3 +0.0 +

XS0974375130 4.875% 25/09/20 --/BB+/BBB- 111.1 2.3 232 +0.0 -1.7 +0.2 +0.0 +

XS1020952435 4.5% 25/01/21 --/BB+/BBB- 109.2 2.5 246 +0.0 -1.5 +0.2 +0.2 +

XS0486101024 5.25% 10/02/22 --/BB+/BBB- 111.7 3.1 293 +0.0 -2.1 +0.1 -0.4 +

XS1169832810 3.25% 16/01/23 Ba1/BB+/BBB- 99.9 3.3 299 -0.2 -1.7 +0.0 +0.0 -

XS1347748607 3.625% 19/01/24 Ba1/BB+/BBB- 100.1 3.6 322 -0.1 +0.1 +

XS0161100515 7.75% 24/01/33 Ba1/BB+/BBB- 128.3 5.2 431 -0.1 -2.4 +0.0 -0.7 +

XS0214965963 5.25% 17/03/55 Ba1/BB+/BBB- 100.1 5.3 416 +0.0 +0.1 +0.2 +1.8 +

Telefonica (Hold) TELEFO 5Y CDS 162

XS0972570351 6.5% PERP (SUB) Ba1/BB+/BBB- 102.0 5.6 578 -0.5 -2.5 -0.3 -0.8 -

XS1148359356 4.2% PERP (SUB) Ba1/BB+/BBB- 94.5 5.8 589 -0.2 -3.6 +0.0 -1.9 +

XS1050460739 5% PERP (SUB) Ba1/BB+/BBB- 96.0 6.1 613 -0.5 -4.1 -0.3 -2.4 +



Telekom Austria (Hold) TKAAV 5Y CDS 85

XS0877720986 5.625% PERP (SUB) Ba1/BB+/-- 102.3 4.5 456 +0.6 -1.3 +0.7 +0.4 +

Telenet (Hold) TNETBB

XS0592445075 6.625% 15/02/21 B1/B+/BB 103.5 5.3 220 +0.2 +0.4 +0.4 +2.1 -

XS0615238390 FRN 15/06/21 B1/B+/BB 98.3 4.0 418 -0.7 -1.5 -0.5 +0.2 -

XS0783935488 6.25% 15/08/22 B1/B+/BB 107.0 3.7 370 -0.1 -0.7 +0.1 +1.1 -

XS0783935306 6.75% 15/08/24 B1/B+/BB 108.7 4.4 451 +0.0 -0.5 +0.1 +1.2 -

XS1266726592 4.875% 15/07/27 B1/B+/BB 95.2 5.5 477 -0.1 -1.2 +0.0 +0.5 -

TVN (no rec) TVNPW

XS0954674668 7.375% 15/12/20 Ba2/BBB/-- 107.3 3.3 320 +0.0 -0.2 +0.2 +1.5 -

United Group (Hold) ADRBID

XS0992294388 7.875% 15/11/20 B2/B/-- 105.6 5.6 538 +0.5 +0.7 +0.6 +2.4 -

Unitymedia (Hold) UNITY

XS0827991760 5.5% 15/09/22 Ba3/BB-/-- 105.9 3.5 355 +0.3 +0.0 +0.4 +1.7 -

XS0862322947 5.75% 15/01/23 Ba3/BB-/-- 106.0 4.0 412 +0.1 +0.5 +0.3 +2.2 +

XS0877974062 5.125% 21/01/23 Ba3/BB-/BB- 105.1 3.8 385 +0.4 +0.6 +0.5 +2.3 -

XS0918739318 5.625% 15/04/23 Ba3/BB-/-- 106.1 4.0 411 +0.3 +0.5 +0.5 +2.2 -

XS1150437579 4% 15/01/25 Ba3/BB-/BB- 96.9 4.4 394 -0.9 -0.5 -0.7 +1.2 +

XS1334248223 4.625% 15/02/26 Ba3/BB-/-- 100.3 4.6 410 -0.1 -0.1 +0.1 +1.6 +

XS1197205591 3.5% 15/01/27 Ba3/BB-/-- 94.2 4.2 350 +0.3 +1.7 +0.4 +3.5 +

XS1199438174 3.75% 15/01/27 B3/B/-- 87.8 5.2 456 -0.6 -0.4 -0.5 +1.3 +

XS0982713330 6.25% 15/01/29 Ba3/BB-/-- 108.5 4.9 483 -0.2 -0.6 +0.0 +1.1 +

UPC (Hold) UPCB 5Y CDS 269

XS0832993397 6.375% 15/09/22 (SUB) B2/B/-- 105.8 4.7 473 +0.0 -0.2 +0.2 +1.5 -

XS0909769407 6.75% 15/03/23 B2/B/-- 107.4 4.6 472 -0.1 -0.3 +0.1 +1.4 -

XS1117297603 4% 15/01/27 Ba3/BB/-- 93.9 4.7 406 +0.1 -1.3 +0.2 +0.4 -

Virgin Media (Buy) VMED 5Y CDS 251

XS1169920193 4.5% 15/01/25 B2/B/B 94.3 5.3 483 -0.3 -1.0 -0.2 +0.7 +

Vivacom (no rec) BLTEBG

XS0994993037 6.625% 15/11/18 B1/B-*-/-- 99.5 6.9 698 +0.1 -1.5 +0.3 +0.2 +

Warner Music (no rec) WMG

XS0849907521 6.25% 15/01/21 B1/B/-- 103.0 5.3 528 +0.1 +0.7 +0.3 +2.4 -






TMT Wind (Buy) WINDIM 5Y CDS 478

XS0922256580 FRN 30/04/19 Ba3/BB/BB- 99.8 5.2 535 -0.2 -0.2 -0.1 +1.5 -

XS1204622960 FRN 15/07/20 Ba3/BB/BB- 97.2 4.9 501 -0.8 -2.0 -0.7 -0.3 -

XS1082635712 FRN 15/07/20 Ba3/BB/BB- 97.0 4.6 475 -0.9 -2.3 -0.8 -0.6 -

XS1082636876 4% 15/07/20 --/BB/BB- 95.9 5.0 505 -1.7 -3.3 -1.6 -1.5 +

XS1055940206 7% 23/04/21 Caa1/B/B- 95.0 8.2 813 -1.6 -3.2 -1.4 -1.4 +

Ziggo (Hold) ZIGGO 5Y CDS 240

XS1028411152 7.125% 15/05/24 B2/B/-- 109.0 5.2 523 +1.2 +0.8 +1.3 +2.5 -

XS1170079443 4.625% 15/01/25 B2/B/-- 94.7 5.4 491 +2.6 +2.7 +2.7 +4.4 -

XS1175813655 3.75% 15/01/25 Ba3/BB-/-- 95.2 4.4 392 +2.5 +2.9 +2.7 +4.6 -

FNL Akelius Fastigheter (no rec) AKFAST

XS1295537077 3.375% 23/09/20 --/BB+/-- 101.5 3.1 301 +0.3 +0.4 +0.5 +2.1 -

Alfa Group (no rec) ABHFIN

XS1076087375 5.5% 10/06/17 --/B+/BB 101.5 4.5 448 +0.2 +0.4 +0.3 +2.1 -

Allied Irish Banks (Hold) AIB 5Y CDS 141

XS1057481084 2.75% 16/04/19 Ba1/BB+/BB+ 104.9 1.2 129 -0.1 -0.1 +0.0 +1.6 +

XS1202664386 1.375% 16/03/20 Ba1/BB+/BB+ 100.7 1.2 123 -0.2 +0.0 +0.0 +1.7 +

XS1325125158 4.125% 26/11/25 (SUB) B1/B+/BB 94.0 5.6 554 -3.0 -6.2 -2.8 -4.5 -

Arrow Global Finance (no rec) ARRGL

XS1132462786 FRN 01/11/21 B1/BB-/-- 100.8 4.9 510 -0.5 -0.7 -0.4 +1.0 -

Atradius (no rec) ATRADI

XS1028942354 5.25% 23/09/44 (SUB) Ba1/--/-- 81.3 8.6 794 -0.1 -8.7 +0.1 -7.0 -

Banca MPS (no rec) MONTE 5Y CDS 632

XS0236480322 FRN 30/11/17 (SUB) Caa3/--/CCC 79.0 14.6 1,481 -3.5 -9.9 -3.4 -8.2 -

XS1051696398 3.625% 01/04/19 B3/--/B- 93.2 6.1 617 -1.7 -6.7 -1.6 -5.0 +

XS0503326083 5% 21/04/20 (SUB) Caa3/--/CCC 79.7 11.6 1,133 -3.1 -14.2 -2.9 -12.5 +

XS0540544912 5.6% 09/09/20 (SUB) Caa3/--/CCC 80.0 11.7 1,141 -2.7 -14.4 -2.5 -12.7 +

Banca P. Emilia Romagna (no rec) BPEIM

XS0300345971 FRN 15/05/17 (SUB) --/B-/BB- 97.8 2.9 310 +0.2 +2.4 +0.3 +4.1 -

Banca Pop. di Vicenza (no rec) VICEN

XS1057050855 2.75% 11/04/17 --/--/B+ 94.3 10.9 815 +1.2 -1.1 +1.3 +0.6 -

XS1339033059 FRN 23/12/17 --/--/B+ 92.6 5.9 606 +1.6 -2.5 +1.7 -0.8 -

XS0985326502 5% 25/10/18 --/--/B+ 92.0 8.5 856 +0.1 -3.1 +0.3 -1.4 -

XS1205644047 2.75% 20/03/20 --/--/B+ 83.5 7.6 759 +0.5 -3.4 +0.6 -1.7 -

XS1300456420 9.5% 29/09/25 (SUB) --/--/B 71.9 19.0 1,867 -5.9 -24.9 -5.8 -23.2 -

Banca Popolare di Milano (no rec) PMIIM 5Y CDS 287

XS0372300227 9% PERP (SUB) Caa2/CCC/B+ 104.2 7.3 720 -2.8 -4.0 -2.7 -2.2 -

XS1024830819 4.25% 30/01/19 Ba3/BB-/BB+ 105.5 2.4 247 -0.2 -0.8 -0.1 +0.9 -

XS0597182665 7.125% 01/03/21 (SUB) B3/--/BB 104.4 6.1 604 -0.1 -3.0 +0.0 -1.3 +

Banco de Sabadell (Hold) SABSM 5Y CDS 195

ES0213860051 6.25% 26/04/20 (SUB) B1/B+/-- 111.5 3.4 330 +0.6 -0.9 +0.7 +0.8 -

Banco do Brasil (no rec) BANBRA 5Y CDS 526

XS0955552178 3.75% 25/07/18 Baa3*-/BB+/BB+ 95.0 6.2 613 +1.0 +2.4 +1.1 +4.1 +

Banco Popolare Scarl (Hold) BPIM 5Y CDS 349

XS0869136316 4.3% 06/01/18 Ba3/--/BB 101.6 3.3 359 +0.3 -1.8 +0.4 -0.1 -

XS1070681397 2.375% 22/01/18 Ba3/--/BB 98.7 3.1 322 +0.0 -1.6 +0.2 +0.1 -

XS1293577208 2.625% 21/09/18 Ba3/--/BB 99.0 3.1 320 +0.3 -1.7 +0.4 +0.0 +

XS1044894944 3.5% 14/03/19 Ba3/--/BB 99.7 3.7 372 +0.9 -2.6 +1.1 -0.8 +

XS1266866927 2.75% 27/07/20 Ba3/--/BB 96.5 3.7 360 +1.5 -3.4 +1.7 -1.7 +

XS0555834984 6% 05/11/20 (SUB) B3/--/BB- 99.7 6.1 606 -0.1 -2.3 +0.0 -0.6 +

XS0632503412 6.375% 31/05/21 (SUB) B3/--/BB- 99.5 6.5 640 -0.5 -3.3 -0.3 -1.6 +






FNL Banco Popular Espanol (no rec) POPSM 5Y CDS 245

XS1017790178 2.5% 01/02/17 Ba2/--/BB- 101.3 1.2 131 +0.0 -0.2 +0.2 +1.5 -

XS1169791529 2% 03/02/20 Ba2/--/BB- 95.5 3.3 326 -0.5 -3.8 -0.4 -2.1 +

ES0213790019 8% 29/07/21 (SUB) --/--/B+

ES0213790027 8.25% 19/10/21 (SUB) --/--/B+

Banco Santander (Hold) SANTAN 5Y CDS 169

XS0418135041 2% PERP (SUB) Ba2/BB+/BB

XS0418134663 2% PERP (SUB) Ba2/BB+/BB

Bank of Ireland (Hold) BKIR 5Y CDS 165

XS0487711573 10% 12/02/20 (SUB) Ba3/BB/-- 119.6 4.5 460 -1.5 -3.7 -1.4 -2.0 -

XS0867469305 10% 19/12/22 (SUB) --/BB/-- 128.5 5.0 477 -1.2 -3.7 -1.1 -2.0 -

XS1075963485 4.25% 11/06/24 (SUB) Ba3/BB/-- 97.9 4.8 504 -3.5 -5.2 -3.3 -3.4 +

Bankia (Hold) BKIASM

ES0214977144 4.375% 14/02/17 B1/BB/BB+ 104.0 0.7 67 +0.1 +0.1 +0.2 +1.8 -

ES0313307193 1.5% 10/11/17 --/BB/BB+ 100.6 1.4 132 +0.2 +0.1 +0.3 +1.8 -

ES0313307003 3.5% 17/01/19 --/BB/BB+ 104.2 2.1 217 +0.1 -0.9 +0.3 +0.8 +

ES0213307004 4% 22/05/24 (SUB) --/B/BB 95.0 5.7 579 -0.9 -4.2 -0.7 -2.5 -

Bankinter (no rec) BKTSM 5Y CDS 177

ES0213679196 6.375% 11/09/19 (SUB) Ba1/BB/-- 113.5 2.5 249 -0.3 -0.6 -0.2 +1.1 -

Barclays (Hold) BACR 5Y CDS 106

XS0214398199 4.75% PERP (SUB) Ba2/BB/BB+ 96.4 5.6 580 -1.8 -3.2 -1.6 -1.4 +

BAWAG P.S.K. (Hold) BAWAG 5Y CDS 171

XS0987169637 8.125% 30/10/23 (SUB) Ba1/--/-- 116.9 5.4 507 -0.5 -4.0 -0.4 -2.3 -

BayernLB (Hold) BYLAN 5Y CDS 99

XS0326869665 5.75% 23/10/17 (SUB) Baa3/--/BB 107.8 1.2 132 +0.1 +0.0 +0.2 +1.7 +

XS0285330717 FRN 07/02/19 (SUB) Baa3/--/BB 96.5 2.0 216 -0.1 +0.3 +0.1 +2.0 +

BCP (no rec) BCPPL 5Y CDS 574

PTBITIOM0057 3.375% 27/02/17 B1/B+/BB- 95.9 7.9 764 -0.1 -2.7 +0.1 -1.0 +

BPCE (no rec) BPCEGP

FR0010535971 6.117% PERP (SUB) Ba2/BB+/BBB- 106.1 2.4 264 -0.4 -0.7 -0.3 +1.0 +

FR0010777524 12.5% PERP (SUB) Ba2/--/BBB- 131.9 3.2 320 -0.3 -0.8 -0.2 +0.9 +

CaixaBank (Hold) CABKSM

XS0989061345 5% 14/11/23 (SUB) Ba2/BB+/BBB- 100.8 4.6 482 -1.7 -3.4 -1.5 -1.6 -

Commerzbank (Hold) CMZB 5Y CDS 138

DE000CB83HX2 9.5% 14/03/17 (SUB) Ba1/BB+/-- 108.3 2.1 208 +0.1 +0.5 +0.3 +2.2 -

DE000CZ22EH9 5% 30/10/17 (SUB) Ba1/BB+/BBB- 105.8 1.8 178 +0.4 +0.3 +0.5 +2.0 -

DE000CZ31PX3 FRN 30/03/18 (SUB) Ba1/BB+/BBB- 101.3 1.8 201 +0.5 -0.3 +0.6 +1.4 -

DE000CB83CE3 6.375% 22/03/19 (SUB) Ba1/BB+/BBB- 109.9 3.0 313 -0.2 -1.9 -0.1 -0.2 +

DE000CB83CF0 7.75% 16/03/21 (SUB) Ba1/BB+/BBB- 116.3 4.0 409 -1.5 -3.7 -1.3 -1.9 +

Crédit Agricole (Hold) ACAFP 5Y CDS 101

FR0010603159 8.2% PERP (SUB) Ba2/BB+/BBB- 112.8 2.1 225 -0.1 -0.2 +0.0 +1.6 +

FR0010670422 10.653% PERP (SUB) Ba2/BB+/BBB- 116.4 3.3 414 -0.1 +0.2 +0.0 +1.9 -

FR0010814434 7.875% PERP (SUB) Ba2/BB+/BBB- 116.2 3.2 327 -0.2 -0.9 +0.0 +0.8 +

Danske Bank (no rec) DANBNK 5Y CDS 87

XS0287195233 4.878% PERP (SUB) Ba1/BB+/BBB- 103.3 2.3 241 -0.2 -0.2 +0.0 +1.5 -

Delta Lloyd (Hold) DLNA

XS1076781589 4.375% PERP (SUB) --/BB+*-/-- 70.9 9.6 917 -2.2 -15.1 -2.1 -13.4 +

Deutsche Bank (Hold) DB 5Y CDS 176

DE000A0TU305 8% PERP (SUB) --/BB-/BB+ 97.5 8.1 726 -4.7 -7.5 -4.5 -5.8 +

Deutsche Postbank (no rec) DPB

XS0307741917 5.983% PERP (SUB) Ba3/--/BB+* 96.8 7.9 862 -1.7 -4.9 -1.5 -3.1 +

Dexia Kommunalbank (no rec) DEXGRP 5Y CDS 140

XS0307581883 FRN 10/07/17 (SUB) Caa3/CCC-/B- 93.8 5.3 549 -0.2 +1.0 -0.1 +2.7 -






FNL EFG Hellas (no rec) EUROB

XS1081588086 4.25% 26/06/18 C/CCC+/C 86.0 10.7 1,142 -1.4 -4.3 -1.2 -2.6 +

Encore (no rec) ECPG

XS1117279619 FRN 15/11/21 B2/B+/-- 96.5 6.7 691 +0.2 -2.8 +0.4 -1.1 -

Erste Bank (Hold) ERSTBK 5Y CDS 160

XS0260783005 FRN 19/07/17 (SUB) Ba2/BB+/BBB 97.6 2.5 265 -0.1 -0.6 +0.1 +1.1 +

Ethias Vie (no rec) ETHIAS

BE6279619330 5% 14/01/26 (SUB) --/--/BB 75.9 8.8 818 -2.2 -7.3 -2.1 -5.6 -

Garfunkelux (no rec) GFKLDE

XS1263891910 7.5% 01/08/22 B2/B+/-- 100.1 7.5 737 -0.4 -2.0 -0.2 -0.3 -

Gazprombank (Sell) GPBRU

XS0987109658 3.984% 30/10/18 Ba2/BB+/BB+ 96.9 5.4 538 +0.5 -0.5 +0.6 +1.2 +

XS1084024584 4% 01/07/19 Ba2/BB+/BB+ 95.6 5.6 555 +0.8 -0.9 +1.0 +0.8 +

Grand City Properties (no rec) GYCGR

XS1191320297 3.75% PERP (SUB) Ba1/BB+/-- 90.8 5.6 541 -0.5 -4.0 -0.3 -2.3 -

Groupama (Hold) CCAMA

FR0010533414 6.298% PERP (SUB) --/--/BB 94.6 10.1 1,002 -0.8 -5.3 -0.6 -3.6 +

FR0011896513 6.375% PERP (SUB) --/--/BB+ 88.1 8.4 804 -2.0 -8.3 -1.8 -6.6 -

FR0010815464 7.875% 27/10/39 --/--/BB+ 101.8 7.3 737 -0.6 -4.1 -0.5 -2.4 +

HSH Nordbank (Sell) HSHN 5Y CDS 187

DE000HSH2H23 FRN 14/02/17 (SUB) B2/--/B-*+ 89.2 12.0 1,217 -0.2 -1.9 +0.0 -0.2 +

Ibercaja (no rec) CAZAR

ES0244251007 5% 28/07/25 (SUB) --/B/BB 88.3 8.0 821 -5.1 -7.6 -5.0 -5.8 -

ICBPI (no rec) ICBPI

XS1318392864 8.25% 30/05/21 (PIK) B3/B/-- 94.5 9.6 971 -1.4 -4.6 -1.3 -2.9 -

Iccrea Banca (no rec) ICCREA

XS1143070503 1.875% 25/11/19 --/BB/BBB- 101.3 1.6 159 +0.1 -0.3 +0.2 +1.4 +

Immigon Portfolioabbau (no rec) IMIGON

AT000B053442 FRN 17/07/17 Caa1/--/-- 89.3 7.7 778 +0.2 -1.2 +0.4 +0.5 -

Intesa Sanpaolo (Hold) ISPIM 5Y CDS 144

IT0004692817 FRN 31/03/18 (SUB) Ba1/--/-- 99.7 2.2 233 +0.1 -0.2 +0.2 +1.5 -

XS0360809577 6.625% 08/05/18 (SUB) Ba2/BB-/BB+ 106.5 3.6 374 -1.1 -0.5 -0.9 +1.2 +

XS0365303675 FRN 28/05/18 (SUB) Ba1/BB/BBB 101.4 1.4 153 +0.2 +0.5 +0.4 +2.2 +

XS0371711663 8.047% PERP (SUB) Ba3/B+/BB 107.8 4.7 464 -0.2 -2.3 -0.1 -0.5 -

XS0452166324 5% 23/09/19 (SUB) Ba1/BB/BBB 107.3 2.9 294 -0.9 -0.3 -0.7 +1.4 +

XS0456541506 8.375% PERP (SUB) Ba3/B+/BB 111.0 5.1 510 -0.2 -3.6 +0.0 -1.9 -

XS0526326334 5.15% 16/07/20 (SUB) Ba1/BB/BBB 108.6 3.0 305 -1.2 -1.8 -1.0 +0.0 +

XS0971213201 6.625% 13/09/23 (SUB) Ba1/BB/BBB 116.2 4.1 378 -1.7 -3.3 -1.6 -1.6 -

XS1222597905 2.855% 23/04/25 (SUB) Ba1/BB/BBB 95.9 3.4 285 -1.8 -2.2 -1.6 -0.5 -

XS1109765005 3.928% 15/09/26 (SUB) Ba1/BB/BBB 99.7 4.0 332 -1.1 -2.7 -1.0 -1.0 +

IPF (no rec) IPFLN

XS1054714248 5.75% 07/04/21 --/--/BB+ 82.7 10.3 1,015 -3.1 -9.1 -2.9 -7.4 -

Kaufman & Broad (no rec) KAUF

XS1050202446 7% 30/09/19 --/B*+/B- 102.9 5.6 571 +0.2 +0.6 +0.3 +2.3 -

Kazkommertsbank (no rec) KKB 5Y CDS 1,221

XS0286431100 6.875% 13/02/17 Caa2/B-/CCC 92.4 15.9 1,563 -0.8 -3.7 -0.7 -1.9 -

Lock (no rec) LINDOR

XS1094672273 FRN 15/08/20 B2/BB-/-- 100.1 5.4 559 +0.0 -0.4 +0.1 +1.3 -

XS1094612378 7% 15/08/21 B2/BB-/-- 102.4 6.3 634 -0.1 -1.6 +0.0 +0.2 +

XS1094674642 9.5% 15/08/22 Caa1/B-/-- 99.9 9.6 941 +0.2 -2.8 +0.3 -1.1 -

Medical Properties Trust (no rec) MPW

XS0975547141 5.75% 01/10/20 Ba1/BBB-/BB 105.9 3.3 323 +0.0 -0.4 +0.2 +1.3 -

XS1278084147 4% 19/08/22 Ba1/BBB-/-- 101.2 3.8 357 +0.4 -0.7 +0.5 +1.0 -






FNL Mediobanca (no rec) BACRED 5Y CDS 199

IT0004645542 5% 15/11/20 (SUB) --/BB/-- 107.9 3.2 317 +0.0 -0.9 +0.1 +0.8 +

IT0004917842 5.75% 18/04/23 (SUB) --/BB/-- 111.9 3.9 355 -0.5 -1.0 -0.4 +0.8 +

Natixis (no rec) KNFP 5Y CDS 82

FR0010531012 6.307% PERP (SUB) Ba2/BB+/BBB- 106.5 2.4 252 -0.2 -0.6 -0.1 +1.2 -

Nord/LB (Hold) NDB 5Y CDS 117

XS0520938647 6% 29/06/20 (SUB) Ba1/--/-- 112.4 3.0 296 -0.2 -0.5 -0.1 +1.2 -

DE000NLB2HC4 4.75% 02/10/23 (SUB) Ba1/--/-- 109.2 3.4 302 +0.3 +1.1 +0.4 +2.8 +

Nova Ljubljanska Banka (no rec) NOVALJ

XS1081728195 2.875% 03/07/17 --/BB-/B+ 101.5 1.8 196 +0.0 +0.1 +0.1 +1.8 +

Novo Banco (no rec) NOVBNC

XS0869315241 3.5% 02/01/43 Caa1/--/-- 59.1 7.0 583 -1.6 -10.2 -1.4 -8.4 -

Raiffeisen Bank Int. (no rec) RBIAV

XS0619437147 6.625% 18/05/21 (SUB) Ba2/BB+/-- 100.2 6.7 649 +1.7 -1.6 +1.8 +0.1 +

XS0843322750 5.875% 27/04/23 (SUB) Ba2/BB+/-- 98.4 6.9 684 +2.3 -0.2 +2.5 +1.5 +

XS0981632804 6% 16/10/23 (SUB) Ba2/BB+/-- 88.7 8.1 768 +4.5 -2.8 +4.6 -1.1 +

XS1001668950 5.163% 18/06/24 (SUB) Ba2/BB+/-- 83.3 11.6 1,146 +0.8 -3.6 +0.9 -1.8 +

XS1034950672 4.5% 21/02/25 (SUB) Ba2/BB+/-- 77.9 11.8 1,169 +5.8 -3.8 +5.9 -2.0 +

RBS (Hold) RBS 5Y CDS 103

XS0323734961 7.0916% PERP (SUB) B1/B+/BB- 103.6 4.7 493 -0.3 -1.0 -0.2 +0.7 -

XS0356705219 6.934% 09/04/18 (SUB) Ba2/BB+/BBB 109.7 2.3 249 -0.7 -1.6 -0.6 +0.1 +

XS1049037200 3.625% 25/03/24 (SUB) Ba2/BB/BBB 100.1 3.5 369 -1.7 -2.4 -1.5 -0.7 -

RLB Niederoe.-Wien (no rec) RFLBNI

XS0997355036 5.875% 27/11/23 (SUB) Ba2/--/-- 84.5 8.7 834 +1.4 -3.6 +1.6 -1.9 -

RPG Byty (no rec) RPGBYT

XS0808638539 6.75% 01/05/20 Ba2/--/BB- 103.9 4.7 367 +0.1 +0.1 +0.3 +1.8 -

Sberbank (Hold) SBERRU 5Y CDS 375

XS1043520144 3.08% 07/03/19 Ba1/--/BBB 97.4 4.1 412 +2.3 +2.0 +2.4 +3.7 -

XS1082459568 3.3524% 15/11/19 Ba1/--/BBB 98.6 4.0 382 +1.3 +0.5 +1.5 +2.2 +

Société Générale (Hold) SOCGEN 5Y CDS 103

XS0336598064 6.999% PERP (SUB) Ba2/BB+/-- 108.3 2.4 260 -0.5 -0.7 -0.4 +1.0 +

XS0449487619 9.375% PERP (SUB) Ba2/BB+/-- 119.9 3.4 348 -0.7 -1.6 -0.6 +0.1 +

UBS (Hold) UBS 5Y CDS 70

XS0336744650 7.152% PERP (SUB) Ba1/BB+/BBB- 109.1 2.2 229 -0.2 -0.3 +0.0 +1.4 -

UniCredit (no rec) UCGIM 5Y CDS 206

XS0322918565 5.75% 26/09/17 (SUB) Ba1/BB/BBB 106.7 1.7 175 -0.1 -0.1 +0.1 +1.6 +

XS0367777884 6.7% 05/06/18 (SUB) Ba3/BB-/BB+ 108.0 3.2 325 -0.2 -1.0 -0.1 +0.7 +

XS0470937243 8.125% PERP (SUB) B1/B+/-- 105.6 6.4 646 +0.5 -6.0 +0.7 -4.3 +

XS0618847775 6.125% 19/04/21 (SUB) Ba1/BB/BBB 106.2 4.8 469 -1.9 -7.0 -1.7 -5.3 +

XS0849517650 6.95% 31/10/22 (SUB) Ba1/BB/BBB 109.0 5.3 509 -2.5 -6.5 -2.3 -4.8 +

XS0986063864 5.75% 28/10/25 (SUB) Ba1/BB/BBB 102.4 5.1 515 -1.9 -4.8 -1.8 -3.1 +

Unipol (Hold) UNIIM 5Y CDS 181

XS1041042828 4.375% 05/03/21 Ba2/BB/-- 105.2 3.3 319 -0.2 -1.1 +0.0 +0.6 +

XS0130717134 FRN 15/06/21 (SUB) Ba1/BB/-- 92.4 3.8 398 -1.0 -3.9 -0.8 -2.2 -

XS0173649798 FRN 28/07/23 (SUB) Ba1/BB/-- 92.0 3.6 375 -1.3 -3.9 -1.1 -2.2 +

XS1206977495 3% 18/03/25 Ba2/BB/-- 91.4 4.1 364 -1.9 -2.8 -1.8 -1.1 +

Veneto Banca (no rec) VENBAN

IT0004241078 FRN 21/06/17 (SUB) --/CCC/--

XS0337685324 6.411% PERP (SUB) --/CCC-/--

XS1069508494 4% 20/05/19 --/B+/-- 91.8 7.1 698 +0.4 -4.6 +0.6 -2.9 +

XS1327514045 9.5% 01/12/25 (SUB) --/CCC/-- 71.5 18.8 1,855 -5.0 -23.4 -4.8 -21.7 +




UniCredit Research page 39

Disclaimer Our recommendations are based on information obtained from, or are based upon public information sources that we consider to be reliable but for the completeness and accuracy of which we assume no liability. All estimates and opinions included in the report represent the independent judgment of the analysts as of the date of the issue. This report may contain links to websites of third parties, the content of which is not controlled by UniCredit Bank. No liability is assumed for the content of these third-party websites. We reserve the right to modify the views expressed herein at any time without notice. Moreover, we reserve the right not to update this information or to discontinue it altogether without notice.

This analysis is for information purposes only and (i) does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any financial, money market or investment instrument or any security, (ii) is neither intended as such an offer for sale or subscription of or solicitation of an offer to buy or subscribe for any financial, money market or investment instrument or any security nor (iii) as an advertisement thereof. The investment possibilities discussed in this report may not be suitable for certain investors depending on their specific investment objectives and time horizon or in the context of their overall financial situation. The investments discussed may fluctuate in price or value. Investors may get back less than they invested. Changes in rates of exchange may have an adverse effect on the value of investments. Furthermore, past performance is not necessarily indicative of future results. In particular, the risks associated with an investment in the financial, money market or investment instrument or security under discussion are not explained in their entirety.

This information is given without any warranty on an "as is" basis and should not be regarded as a substitute for obtaining individual advice. Investors must make their own determination of the appropriateness of an investment in any instruments referred to herein based on the merits and risks involved, their own investment strategy and their legal, fiscal and financial position. As this document does not qualify as an investment recommendation or as a direct investment recommendation, neither this document nor any part of it shall form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever. Investors are urged to contact their bank's investment advisor for individual explanations and advice.

Neither UniCredit Bank nor any of their respective directors, officers or employees nor any other person accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith.

This analysis is being distributed by electronic and ordinary mail to professional investors, who are expected to make their own investment decisions without undue reliance on this publication, and may not be redistributed, reproduced or published in whole or in part for any purpose.

Responsibility for the content of this publication lies with:

UniCredit Group and its subsidiaries are subject to regulation by the European Central Bank

a) UniCredit Bank AG (UniCredit Bank), Am Tucherpark 16, 80538 Munich, Germany, (also responsible for the distribution pursuant to §34b WpHG). The company belongs to UniCredit Group. Regulatory authority: “BaFin“ – Bundesanstalt für Finanzdienstleistungsaufsicht, Lurgiallee 12, 60439 Frankfurt, Germany.

b) UniCredit Bank AG London Branch (UniCredit Bank London), Moor House, 120 London Wall, London EC2Y 5ET, United Kingdom. Regulatory authority: “BaFin“ – Bundesanstalt für Finanzdienstleistungsaufsicht, Lurgiallee 12, 60439 Frankfurt, Germany and subject to limited regulation by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS, United Kingdom and Prudential Regulation Authority 20 Moorgate, London, EC2R 6DA, United Kingdom. Further details regarding our regulatory status are available on request.

c) UniCredit Bank AG Hong Kong Branch (UniCredit Bank Hong Kong), 25/F Man Yee Building, 68 Des Voeux Road Central, Hong Kong. Regulatory authority: Hong Kong Monetary Authority, 55th Floor, Two International Financial Centre, 8 Finance Street, Central, Hong Kong

d) UniCredit Bank AG Singapore Branch (UniCredit Bank Singapore), Prudential Tower, 30 Cecil Street, #25-01, Singapore 049712 Regulatory authority: Monetary Authority of Singapore, 10 Shenton Way MAS Building, Singapore 079117

e) UniCredit Bank AG Tokyo Branch (UniCredit Tokyo), Otemachi 1st Square East Tower 18/F, 1-5-1 Otemachi, Chiyoda-ku, 100-0004 Tokyo, Japan Regulatory authority: Financial Services Agency, The Japanese Government, 3-2-1 Kasumigaseki Chiyoda-ku Tokyo, 100-8967 Japan, The Central Common Government Offices No. 7.

POTENTIAL CONFLICTS OF INTERESTS

Magyar Telekom 6a; Wienerberger 3; BCP 3; Banco Popolare Scarl 3; Piaggio 3; ABN Amro Bank 3; Banque PSA 3; Continental 3; UBS 3; Wind 3; C.I.R. 3; Deutsche Postbank 3; IKB 3; Renault 3;

Key 1a: UniCredit Bank AG and/or any related legal person owns at least 2% of the capital stock of the analyzed company.

Key 1b: The analyzed company owns at least 2% of the capital stock of UniCredit Bank AG and/or any related legal person.

Key 2: UniCredit Bank AG and/or any related legal person has been lead manager or co-lead manager over the previous 12 months of any publicly disclosed offer of financial instruments of the analyzed company, or in any related derivatives.

Key 3: UniCredit Bank AG and/or any related legal person administers the securities issued by the analyzed company on the stock exchange or on the market by quoting bid and ask prices (i.e. acts as a market maker or liquidity provider in the securities of the analyzed company or in any related derivatives).

Key 5: The analyzed company and UniCredit Bank AG and/or any related legal person have concluded an agreement on the preparation of analyses.

Key 6a: Employees or members of the Board of Directors of UniCredit Bank AG and/or any other employee that works for UniCredit Research (i.e. the joint research department of the UniCredit Group) and/or members of the Group Board (pursuant to relevant domestic law) are members of the Board of Directors of the analyzed company. Members of the Board of Directors of the analyzed company hold office in the Board of Directors of UniCredit Bank AG (pursuant to relevant domestic law). The application of this Key 6a is limited to persons who, although not involved in the preparation of the analysis, had or could reasonably be expected to have access to the analysis prior to its dissemination to customers or the public.

Key 6b: The analyst is on the Supervisory Board/Board of Directors of the company they cover.

RECOMMENDATIONS, RATINGS AND EVALUATION METHODOLOGY

Company Date Rec. Company Date Rec. Company Date Rec. ALUFP 1/29/2016 no rec. HELLA 3/30/2015 Marketweight PIAGIM 9/14/2015 Sell BCPPL 11/10/2015 In transition HTZ 11/10/2015 Sell PIAGIM 3/2/2015 Hold BPCEGP 11/10/2015 In transition HTZ 7/21/2015 Hold RENAUL 1/15/2016 Marketweight CIRSA 9/10/2015 Buy IKB 11/10/2015 In transition RENAUL 4/23/2015 Overweight CMZB 11/2/2015 Marketweight INTNED 8/5/2015 Marketweight SAPSJ 4/24/2015 Buy CMZB 9/14/2015 Restricted INTNED 6/3/2015 Restricted SAPSJ 3/10/2015 Restricted CONGR 1/12/2016 Marketweight INTNED 2/5/2015 Marketweight SNSSNS 11/10/2015 In transition CONGR 11/12/2015 Restricted ISSDC 3/12/2015 Overweight STERV 10/12/2015 Hold DAA 11/10/2015 In transition ISSDC 3/5/2015 Marketweight TDCDC 1/28/2016 Marketweight DPB 11/10/2015 In transition KNFP 11/10/2015 In transition TDCDC 8/10/2015 Overweight EUROCA 7/8/2015 Hold MOLHB 1/21/2016 Buy TDCDC 2/20/2015 Marketweight EUROCA 6/16/2015 Buy MRKGR 2/5/2015 Marketweight UBS 10/13/2015 Marketweight EUROCA 4/24/2015 Hold NSINO 4/17/2015 no rec. UBS 7/31/2015 Restricted F 2/4/2016 Restricted PEUGOT 2/24/2015 Hold VMED 6/16/2015 Buy F 3/5/2015 Marketweight PEUGOT 2/19/2015 Marketweight WIEAV 2/18/2015 Hold HEIGR 7/29/2015 Hold PGIM 6/9/2015 no rec. WINDIM 8/7/2015 Buy

Overview of our ratings

You will find the history of rating regarding recommendation changes as well as an overview of the breakdown in absolute and relative terms of our investment ratings on our website www.disclaimer.unicreditmib.eu/credit-research-rd/Recommendations_CR_e.pdf.

Note on the evaluation basis for interest-bearing securities:

Recommendations relative to an index:




For high grade names the recommendations are relative to the "iBoxx EUR Benchmark" index family, for sub investment grade names the recommendations are relative to the "iBoxx EUR High Yield" index family.

Marketweight: We recommend having the same portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the issuer is equal to the total return of the index.

Overweight: We recommend having a higher portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the issuer is greater than the total return of the index.

Underweight: We recommend having a lower portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the issuer is less than the total return of the index.

Outright recommendations:

Hold: We recommend holding the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is equal to the yield.

Buy: We recommend buying the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is greater than the yield.

Sell: We recommend selling the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is less than the yield.

We employ three further categorizations for interest-bearing securities in our coverage:

Restricted: A recommendation and/or financial forecast is not disclosed owing to compliance or other regulatory considerations such as a blackout period or a conflict of interest.

Coverage in transition: Due to changes in the research team, the disclosure of a recommendation and/or financial information are temporarily suspended. The interest-bearing security remains in the research universe and disclosures of relevant information will be resumed in due course.

Not rated: Suspension of coverage.

Trading recommendations for fixed-interest securities mostly focus on the credit spread (yield difference between the fixed-interest security and the relevant government bond or swap rate) and on the rating views and methodologies of recognized agencies (S&P, Moody’s, Fitch). Depending on the type of investor, investment ratings may refer to a short period or to a 6 to 9-month horizon. Please note that the provision of securities services may be subject to restrictions in certain jurisdictions. You are required to acquaint yourself with local laws and restrictions on the usage and the availability of any services described herein. The information is not intended for distribution to or use by any person or entity in any jurisdiction where such distribution would be contrary to the applicable law or provisions.

If not otherwise stated daily price data refers to pre-day closing levels and iBoxx bond index characteristics refer to the previous month-end index characteristics.

Coverage Policy A list of the companies covered by UniCredit Bank is available upon request.

Frequency of reports and updates It is intended that each of these companies be covered at least once a year, in the event of key operations and/or changes in the recommendation.

SIGNIFICANT FINANCIAL INTEREST UniCredit Bank AG and/or other related legal persons with them regularly trade shares of the analyzed company. UniCredit Bank AG and/or other related legal persons may hold significant open derivative positions on the stocks of the company which are not delta-neutral.

UniCredit Bank AG and/or other related legal persons have a significant financial interest relating to the analyzed company or may have such at any future point of time. Due to the fact that UniCredit Bank AG and/or any related legal person are entitled, subject to applicable law, to perform such actions at any future point in time which may lead to the existence of a significant financial interest, it should be assumed for the purposes of this information that UniCredit Bank AG and/or any related legal person will in fact perform such actions which may lead to the existence of a significant financial interest relating to the analyzed company.

Analyses may refer to one or several companies and to the securities issued by them. In some cases, the analyzed companies have actively supplied information for this analysis.

INVESTMENT BANKING TRANSACTIONS The analyzed company and UniCredit Bank AG and/or any related legal person concluded an agreement on services in connection with investment banking transactions in the previous 12 months, in return for which the Bank and/or such related legal person received a consideration or promise of consideration or intends to do so. Due to the fact that UniCredit Bank AG and/or any related legal person are entitled to conclude, subject to applicable law, an agreement on services in connection with investment banking transactions with the analyzed company at any future point in time and may receive a consideration or promise of consideration, it should be assumed for the purposes of this information that UniCredit Bank AG and/or any related legal person will in fact conclude such agreements and will in fact receive such consideration or promise of consideration.

ANALYST DECLARATION The author’s remuneration has not been, and will not be, geared to the recommendations or views expressed in this study, neither directly nor indirectly.

ORGANIZATIONAL AND ADMINISTRATIVE ARRANGEMENTS TO AVOID AND PREVENT CONFLICTS OF INTEREST To prevent or remedy conflicts of interest, UniCredit Bank has established the organizational arrangements required from a legal and supervisory aspect, adherence to which is monitored by its compliance department. Conflicts of interest arising are managed by legal and physical and non-physical barriers (collectively referred to as “Chinese Walls”) designed to restrict the flow of information between one area/department of UniCredit Bank and another. In particular, Investment Banking units, including corporate finance, capital market activities, financial advisory and other capital raising activities, are segregated by physical and non-physical boundaries from Markets Units, as well as the research department. Disclosure of publicly available conflicts of interest and other material interests is made in the research. Analysts are supervised and managed on a day-to-day basis by line managers who do not have responsibility for Investment Banking activities, including corporate finance activities, or other activities other than the sale of securities to clients.

ADDITIONAL REQUIRED DISCLOSURES UNDER THE LAWS AND REGULATIONS OF JURISDICTIONS INDICATED

You will find a list of further additional required disclosures under the laws and regulations of the jurisdictions indicated on our website www.cib-unicredit.com/research-disclaimer.

Notice to Austrian investors: This analysis is only for distribution to professional clients (Professionelle Kunden) as defined in article 58 of the Securities Supervision Act.

Notice to investors in Bosnia and Herzegovina: This report is intended only for clients of UniCredit in Bosnia and Herzegovina who are institutional investors (Institucionalni investitori) in accordance with Article 2 of the Law on Securities Market of the Federation of Bosnia and Herzegovina and Article 2 of the Law on Securities Markets of the Republic of Srpska, respectively, and may not be used by or distributed to any other person. This document does not constitute or form part of any offer for sale or subscription for or solicitation of any offer to buy or subscribe for any securities and neither this document nor any part of it shall form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever.

Notice to Brazilian investors: The individual analyst(s) responsible for issuing this report represent(s) that: (a) the recommendations herein reflect exclusively the personal views of the analysts and have been prepared in an independent manner, including in relation to UniCredit Group; and (b) except for the potential conflicts of interest listed under the heading “Potential Conflicts of Interest” above, the analysts are not in a position that may impact on the impartiality of this report or that may constitute a conflict of interest, including but not limited to the following: (i) the analysts do not have a relationship of any nature with any person who works for any of the companies that are the object of this report; (ii) the analysts and their respective spouses or partners do not hold, either directly or indirectly, on their behalf or for the account of third parties, securities issued by any of the companies that are the object of this report; (iii) the analysts and their respective spouses or partners are not involved, directly or indirectly, in the acquisition, sale and/or trading in the market of the securities issued by any of the companies that are the object of this report; (iv) the analysts and their respective spouses or partners do not have any financial interest in the companies that are the object of this report; and (v) the compensation of the analysts is not, directly or indirectly, affected by UniCredit’s revenues arising out of its businesses and financial transactions. UniCredit represents that: except for the potential conflicts of interest listed under the heading “Potential Conflicts of Interest” above, UniCredit, its controlled companies, controlling companies or companies under common control (the “UniCredit Group”) are not in a condition that may impact on the impartiality of this report or that may constitute a conflict of interest, including but not limited to the following: (i) the UniCredit Group does not hold material equity interests in the companies that are the object of this report; (ii) the companies that are the object of this report do not hold material equity interests in the UniCredit Group; (iii) the UniCredit Group does not have material financial or commercial interests in the companies or the securities that are the object of this report; (iv) the UniCredit Group is not involved in the acquisition, sale and/or trading of the securities that are the object of this report; and (v) the UniCredit Group does not receive compensation for services rendered to the companies that are the object of this report or to any related parties of such companies.

Notice to Canadian investors: This communication has been prepared by UniCredit Bank AG, which does not have a registered business presence in Canada. This communication is a general discussion of the merits and risks of a security or securities only, and is not in any way meant to be tailored to the needs and circumstances of any recipient. The contents of this communication are for information purposes only, therefore should not be construed as advice and do not constitute an offer to sell, nor a solicitation to buy any securities.




Notice to Cyprus investors: This document is directed only at clients of UniCredit Bank who are persons falling within the Second Appendix (Section 2, Professional Clients) of the law for the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and other Related Matters, Law 144(I)/2007 and persons to whom it may otherwise lawfully be communicated who possess the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that they incur (all such persons together being referred to as “relevant persons”). This document must not be acted on or relied on by persons who are not relevant persons or relevant persons who have requested to be treated as retail clients. Any investment or investment activity to which this communication related is available only to relevant persons and will be engaged in only with relevant persons. This document does not constitute an offer or solicitation to any person to whom it is unlawful to make such an offer or solicitation.

Notice to investors in Ivory Coast: The information contained in the present report have been obtained by Unicredit Bank AG from sources believed to be reliable, however, no express or implied representation or warranty is made by Unicredit Bank AG or any other person as to the completeness or accuracy of such information. All opinions and estimates contained in the present report constitute a judgement of Unicredit Bank AG as of the date of the present report and are subject to change without notice. They are provided in good faith but without assuming legal responsibility. This report is not an offer to sell or solicitation of an offer to buy or invest in securities. Past performance is not an indicator of future performance and future returns cannot be guaranteed, and there is a risk of loss of the initial capital invested. No matter contained in this document may be reproduced or copied by any means without the prior consent of Unicredit Bank AG.

Notice to New Zealand investors: This report is intended for distribution only to persons who are “wholesale clients” within the meaning of the Financial Advisers Act 2008 (“FAA”) and by receiving this report you represent and agree that (i) you are a “wholesale client” under the FAA (ii) you will not distribute this report to any other person, including (in particular) any person who is not a “wholesale client” under the FAA. This report does not constitute or form part of, in relation to any of the securities or products covered by this report, either (i) an offer of securities for subscription or sale under the Securities Act 1978 or (ii) an offer of financial products for issue or sale under the Financial Markets Conduct Act 2013.

Notice to Omani investors: This communication has been prepared by UniCredit Bank AG. UniCredit Bank AG does not have a registered business presence in Oman and does not undertake banking business or provide financial services in Oman and no advice in relation to, or subscription for, any securities, products or financial services may or will be consummated within Oman. The contents of this communication are for the information purposes of sophisticated clients, who are aware of the risks associated with investments in foreign securities and neither constitutes an offer of securities in Oman as contemplated by the Commercial Companies Law of Oman (Royal Decree 4/74) or the Capital Market Law of Oman (Royal Decree 80/98), nor does it constitute an offer to sell, or the solicitation of any offer to buy non-Omani securities in Oman as contemplated by Article 139 of the Executive Regulations to the Capital Market Law (issued vide CMA Decision 1/2009). This communication has not been approved by and UniCredit Bank AG is not regulated by either the Central Bank of Oman or Oman’s Capital Market Authority.

Notice to Pakistani investors: Investment information, comments and recommendations stated herein are not within the scope of investment advisory activities as defined in sub-section I, Section 2 of the Securities and Exchange Ordinance, 1969 of Pakistan. Investment advisory services are provided in accordance with a contract of engagement on investment advisory services concluded with brokerage houses, portfolio management companies, non-deposit banks and the clients. The distribution of this report is intended only for informational purposes for the use of professional investors and the information and opinions contained herein, or any part of it shall not form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever.

Notice to Polish Investors: This document is intended solely for professional clients as defined in Art. 3.39b of the Trading in Financial Instruments Act of 29 July 2005 (as amended). The publisher and distributor of the document certifies that it has acted with due care and diligence in preparing it, however, assumes no liability for its completeness and accuracy. This document is not an advertisement. It should not be used in substitution for the exercise of independent judgment.

Notice to Serbian investors: This analysis is only for distribution to professional clients (profesionalni klijenti) as defined in article 172 of the Law on Capital Markets.

Notice to UK investors: This communication is directed only at clients of UniCredit Bank who (i) have professional experience in matters relating to investments or (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations, etc.”) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

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UniCredit Research* Erik F. Nielsen Group Chief Economist Global Head of CIB Research +44 207 826-1765 [email protected]

Dr. Ingo Heimig Head of Research Operations +49 89 378-13952 [email protected]

Credit Research

Luis Maglanoc, CFA, Head +49 89 378-12708 [email protected]

Credit Strategy & Structured Credit Research

Dr. Philip Gisdakis, Head Credit Strategy +49 89 378-13228 [email protected]

Dr. Christian Weber, CFA, Deputy Head Credit Strategy +49 89 378-12250 [email protected]

Dr. Tim Brunne Quantitative Credit Strategy +49 89 378-13521 [email protected]

Holger Kapitza Credit Strategy & Structured Credit +49 89 378-28745 [email protected]

Dr. Stefan Kolek EEMEA Corporate Credits & Strategy +49 89 378-12495 [email protected]

Manuel Trojovsky Credit Strategy & Structured Credit +49 89 378-14145 [email protected]

Financials Credit Research

Franz Rudolf, CEFA, Head Covered Bonds +49 89 378-12449 [email protected]

Dr. Tilo Höpker Banks +49 89 378-12960 [email protected]

Luis Maglanoc, CFA Regulatory & Accounting Service +49 89 378-12708 [email protected]

Natalie Tehrani Monfared Regulatory & Accounting Service +49 89 378-12242 [email protected]

Emanuel Teuber Covered Bonds +49 89 378-12961 [email protected]

Robert Vielhaber Sub-Sovereigns & Agencies, Green Bonds +49 89 378-12004 [email protected]

Dr. Martina von Terzi Banks, Financial Services, Insurance +49 89 378-14245 [email protected]

Corporate Credit Research

Stephan Haber, CFA, Co-Head Telecoms, Technology +49 89 378-15192 [email protected]

Dr. Sven Kreitmair, CFA, Co-Head Automotive & Mobility +49 89 378-13246 [email protected]

Christian Aust, CFA Industrials +49 89 378-12806 [email protected]

David Bertholdt Capital Goods & Services +49 89 378-13211 [email protected]

Mehmet Dere Retail, Travel & Leisure, Oil & Gas +49 89 378-11294 [email protected]

Michael Gerstner Utilities, Hybrids +49 89 378-15449 [email protected]

Alexander Rozhetskin EEMEA (Banks, Oil & Gas, Basic Resources, Telecoms) +44 207 826-7953 [email protected]

Jonathan Schroer, CFA Media/Cable, Logistics, Business Services +49 89 378-13212 [email protected]

Dr. Silke Stegemann, CEFA Health Care & Pharma, Food & Beverage, Personal & Household Goods +49 89 378-18202 [email protected]

Publication Address

UniCredit Research Corporate & Investment Banking UniCredit Bank AG Arabellastrasse 12 D-81925 Munich [email protected]

BloombergUCCR Internet www.research.unicredit.eu

*UniCredit Research is the joint research department of UniCredit Bank AG (UniCredit Bank), UniCredit Bank AG London Branch (UniCredit Bank London), UniCredit Bank AG Milan Branch (UniCredit Bank Milan), UniCredit Bank New York (UniCredit Bank NY), UniCredit Bulbank, Zagrebačka banka d.d., UniCredit Bank Czech Republic and Slovakia, Bank Pekao, ZAO UniCredit Bank Russia (UniCredit Russia), UniCredit Bank Romania. CR 21

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High Yield Pacenotes - UniCredit