< The 2014 All-Europe Fixed-Income Research Team
For a second year running, J.P. Morgan’s London-based trio shepherded by Nitin Dias and Stephanie Renegar captures second place. These leaders also direct J.P. Morgan teams that rank first in High-Yield Basic Materials, second in High-Yield Manufacturing/General Industrials and third in Investment-Grade Basic Materials. Among their top trades in this sector are recommendations on a pair of Swiss automaker Volvo’s instruments. Anticipating an increase in operating earnings and crediting management’s commitment to protect the company’s balance sheet and maintain or improve its credit rating, the squad in November upgraded Volvo’s 2.375 percent senior 2019 notes from neutral to overweight, at 100.6 percent of par value, while issuing a sell on the corresponding five-year credit default swaps, at 135 basis points. By the end of December, the bonds had tightened to 99.4 percent and the CDSs had narrowed to 106 basis points. Going forward, the researchers prefer “stable companies with decent yield-to-call premiums,” says Renegar, especially “smaller automotives credits.” |