But : Back to Neutral after the observed rebound

We raised our recommendation on the Moblux 4.25% 2028 notes to Buy from Neutral on 23 October, to take advantage of the upside opportunity created by the sharp six-point loss in its cash price over one month and its clear underperformance vs. the high yield market (spread widening of 150bp vs. +55bp for the JPM ‘B’ index). While the home furnishings sector is clearly under pressure, penalised by low consumer confidence and falling property transactions, the bond's yield was boost...