Jyske Bank - Corporate Bonds Research

Corporate Bonds Research

Recommendations and analyses on Corporate Bonds.

	Vestas: challenging 2012 ahead [09/02/12]
	Despite the downgrade on 3 January when Vestas presented the preliminary key figures for 2011, the results were at the low end given EBIT at EUR -60m against the previously announced EUR 1m. At the same time Vestas announced that it guides towards an EBIT margin of 0%-4% for 2012. We maintain our BUY recommendation for the company?s ?4.625% 2015 bond issue.

	CEDC - Russian Standard to the rescue [08/02/12]
	Russian Standard wants to convert debt into shares in CEDC and set up a financing facility for the refinancing of CEDC?s convertible bond issue. The bonds rise sharply on the news. We maintain our BUY recommendation.

	Strong demand for Ineos bonds [07/02/12]
	Late Friday, Ineos launched two major bond issues. Due to the strong demand for Ineos bonds, Ineos refinanced twice as much as initially planned. The refinancing is very favourable for Ineos? credit profile as it removes the refinancing risk in 2013 and replaces the company?s Term Loans with long-term and less restrictive debt. Therefore, we reiterate our BUY recommendation for Ineos.

	Europcar: while waiting for the refinancing? [01/02/12]
	In January, we saw a generally positive sentiment in the financial markets. A large number of companies issued new bonds ? but Europcar was not one of them. In our view, there is a major risk that the financial markets will face a more negative trend again in the short term and that the market for new issues will close again. We downgrade our recommendations from Buy to SELL for the short term.

	Vestas: downgrade to BUY after outperformance [01/02/12]
	Since we put Vestas ?4.625% 2015 on STRONG BUY on 9 January, the credit spread on the issue has narrowed significantly, prompted by a price increase of full 7 basis points. Hence, we assess that the issue has realised the majority of the price potential and we therefore change our recommendation from Strong Buy to BUY.