< The 2014 All-Europe Fixed-Income Research Team
The BNP Paribas squad in London is directed by Hunter Martin and makes it debut on this roster in second place. “M&A activity will remain a key theme in 2014,” says Martin, “but we expect that only a handful of transactions will result in significant spread movements.” These researchers track 30 issuers, an increase of two over the past year. Among them is Netherlands-based telecommunications giant Royal KPN, whose five-year credit default swaps they bumped from add to hold in January 2013, with the spread at 180 basis points. They expected KPN management to introduce a credit-positive financial policy at its fourth-quarter earnings announcement the following month, and they were right. Executives at the former Dutch telephone monopoly advised that the company would raise significant funds on the capital markets via a €3 billion ($4.1 billion) rights issue and €1 billion worth of hybrid bonds, which pushed the CDS to 155 basis points that same day. Martin’s team continues to count KPN among its favorite telecom majors, which also include Germany’s Deutsche Telekom; Hellenic Telecommunications Organization, known by its Greek acronym, OTE; TDC of Denmark; and Spain Telefónica. |