European Morning Credit: Today in European Credit

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European Morning Credit: Today in European Credit

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European Morning Credit

Today in European Credit

Strategy 21 May 2026

Taking Position: We have been highlighting the attractiveness of compression trades Credit

from a systematic, but also from a tactical point of view. XO is also cheap vs bonds, as Europe

bond spreads have been outperforming notably recently in euro-denominated HY European Credit Rsch Grp

markets. As the yield proposition remains strong in Euro HY cash, we see upside in BofASE (France)

synthetics. See: Taking Position: Still room to rally 20 May 2026. (IA) See Team Page for List of Analysts

Financials

Generali (GIM): 1Q26 looked solid to us. The operating result of €2.2bn (+8% yoy) was

9% ahead of estimates, with beats across divisions including property and casualty Exhibit 1: Just published

(P&C). Gross written premiums were 2% ahead of estimates, mitigating prior market Recent publications from European Credit

concerns on the top line. Solvency at 212% remains solid. See below. (LG) Research

Chemicals TakingStill roomPositionto rally

Syensqo (SYENS): Syensqo announced a strategic review of its Performance & Care Ioannis Angelakis

segment, evaluating strategic options for the business. This is part of its plan to focus

on technologies with the strongest long-term growth opportunities. The Performance & Stellantis NV

Updating credit views before CMDCare business was 35% of FY25 net sales (€2bn) but 26% of FY25 EBITDA (€358m). See Stephanie Vincent

below for more details. (WD)

Retail Source: BofA Global Research BofA GLOBAL RESEARCH

Tesco (TSCOLN): Yesterday, Moody’s released a credit opinion on Tesco, following its

upgrade to Baa2 stable. Based on the refreshed thresholds, we expect the company’s

ratings to remain stable near-term.