SaxoTV

#SaxoStrats - Europcar bond shows drive and direction

352 views
August 17, 2015 aud, auterity, auto, auto company, auto group, auto industry, auto production, auto sales, auto stocks, autodesk, automaker, automakers, automation, automobile, automobiles, automotive, automóviles, autoplay, autos, autralian, autumn, bond, bond buy, bond buying, bond buying programme, bond buying us, bond inspiration, bond investing, bond investment, bond investor, bond investors, bond market, bond markets, bond portfolio, bond portfolios, bond purchase, bond purchases, bond strategy, bond yield, bond yield rate, bond yields, bond-buying programme, bondbuying, bondmarket, bonds, bonds 2014, bonds 2015, bonds and equties, bonds hedge, bonds hedging, bonds market, bonds or shares, bonds to equities, bonds update, bonds v equities, bonds v stocks, car industry, cars, carscars, eur, eur usd, eurgbp, eurjpy, euro, euro area, euro crisis, euro dollar, euro rates, euro strength, euro yen, euro zone, eurocrisis, eurodebt, eurodollar, europa, europcar, europe, europe growth, european, european banks, european central bank, european economy, european growth, european recovery, european union, eurozona, eurozone, eurozone crisis, eurozone economy, eurozone inflation, eurozone recovery, eurusd, france, hire, saxo tv, saxostrats, strategy, tradingfloor.com
Michael Boye, Fixed Income Trader at Saxo Bank, outlines his latest #SaxoStrat trade: a new Europcar bond. 

This a medium risk play based on the firm's successful IPO earlier this year. The company is moving into the car sharing business, squaring up to Uber and Car2go.    

Europcar is among the largest vehicle rental companies in Europe with operations in more than 140 countries.

The company went public in June 2015 on the Paris Stock Exchange and used the proceeds to reduce debt and fund a strategic move into car-sharing.

Debt reduction included early redemption of more expensive bonds and the introduction of this new bond.

The new bond was upgraded by S&P to B- rating from a previous CCC+.

Management and risk description
Key risks include fierce competition, disruptive new technologies (Google, Uber etc.) and an antitrust claim recently filed by the French Competition Authority.
Parameters
Entry: current market price (€103.25/104.00).