- In a follow-up to the “Euro IG Credits We Like” report published last week, in this piece we cut across sectors in the high yield space to look for HY credits we like.
- Despite underperforming since the start of the Russia-Ukraine war, we highlight credits in which our analysts not only continue to see significant value, and where the fundamental momentum is a positive, but where we view wider spreads as providing an attractive entry-point/opportunity to increase exposure.
- Of particular interest are the positive fundamentals at Titan Cement and ZF, and Altice France given their insulation from direct and secondary effects.
- Cemex and Sappi benefit from pricing power, while OI Glass, Progroup, Loxam and Modulaire remain well positioned against higher energy prices and cost inflation. We also remain comfortable in our Buy recommendation on Kloeckner Pentaplast.
- However, as a counterpoint to this cross-section of HY credits, we have taken the opportunity to remove our Outperform recommendation on INEOS Quattro.