Fixed Income Analysis /

Weekly Credit Risk Monitor

    Stuart Culverhouse
    Stuart Culverhouse

    Chief Economist & Head of Fixed Income Research

    Tellimer Research
    9 November 2017
    Published byTellimer Research
    Credits in Focus: Mexican non-bank financials – Trade ideas on Crédito Real, Financiera Independencia and Unifin Financiera
    We initiate coverage of the three main “SOFOMs” (Sociedad Financiera de Objeto Múltiple, Financial Entity for Multiple Purposes, or “nonbank-financials”) in Mexico with some relative value trade ideas.
    We particularly like the trade to BUY Financiera Independencia’s (FINDEP) US$250mn, 8.0% bonds due 2024 and SELL Crédito Real’s (CREAL) US$625mn, 7.25% bonds due 2023; as well as the trade to BUY Unifin Financiera’s (UNIFIN) US$450mn, 7.0% bonds due 2025 and SELL the same Crédito Real bond.
    Oi Brazil: As we approach the deadline for the Creditors Meeting’s first call for Oi Brazil, there is plenty of noise in the news...
    PDVSA: It is still not clear if many or even any holders of the PDVSA 17s have received the final principal payment.
    Nigerian banks: On 7 November, Moody’s downgraded Nigeria’s issuer rating to B2 from B1.
    Bank Otkritie: On 7 November, Bank Otkritie disclosed that the write down of the NMOSRM Dec 2019 bond is to be postponed.
    Diamond Bank: On 3 November, Diamond Bank disclosed that it is in the 'final stages' of divesting its 97% stake in Diamond Bank S.A.