Following FY24 results and newly released FY25 guidance, we have revised and updated our single-name recommendations to better reflect evolving market & political conditions (including US tariffs and German fiscal policy changes), regulatory updates (including the roll-back in the EU’s CO2 emission compliance) and shifting consumer preferences. Overall, appetite for EUR IG Corporates has remained relatively unscathed despite the recent sell-off in rates and weakness in US IG Corporates - and if anything - these have been supportive for spreads YtD25 in EUR seniors and hybrids (SSS < 100bps).
Key sections of this publication are as follows:
- EUR Credit Strategy: slides (3-7)
- Seniors (Marketweight), Hybrids (Selective Overweight)
- Sector recommendations (see below for recap)
- Top Trade Ideas plus Top Picks & Pans (slides 8-20)
- Top Picks & Pans by sector
- Top Trade Ideas across Integrated Utilities, Regulated Utilities, Water & Waste,
- Oil & Gas, Telecoms & Towercos, Autos, Healthcare/Pharma, Infrastructure/Services
- Fundamentals single-name views by sector (slides 21-123)
- Integrated Utilities (slides 21-34),
- Regulated Utilities (slides 35-49),
- Renewables, Water & Waste (slides 50-58),
- Oil & Gas (slides 59-67),
- Telecoms & IT Services (slides 68-79),
- Towercos (slides 80-85),
- Autos (slides 86-100, + new coverage),
- Infrastructure/Services/Consumer (slides 101-111),
- Healthcare/Pharma (slides 112-118),
- Spanish REITs (slides 119-123)
- Corporate Hybrids (slides 124-136)
- Utilities, O&G, Telecoms & Infra, Cyclicals