Fitch Solutions: Auto Industry Uncertainty Drives Toyota CDS Liquidity

Fitch Solutions, a division of the Fitch Group, says the divergence between CDS spreads and liquidity for Toyota Motor Corporation illustrates opposing market views on the company's prospects as it continues to grapple with the global auto industry downturn. Similarly to Honda, which reported earnings last week, Toyota's credit spreads have tightened over the last 3 months with the 5 year point moving 65% from 170bp to 60bp. However, despite the tightening of spreads, CDS liquidity on Toyota has also increased significantly from trading in the 25th percentile to the 7th percentile. Thomas Aubrey, Managing Director, Fitch Solutions, London, said, "Greater CDS liquidity shows market disagreement over the future value of an entity and illustrates heightened market uncertainty for that entity in the run up to its earnings." "Toyota posted a $7.74 billion loss for the quarter ending March 31st and remains significantly exposed to the US market with its high fixed cost base. The US government's "cash-for-clunkers" programme is however expected to show a month on month improvement for July US auto sales," Aubrey added. Fitch Solutions' Global CDS Spreads/Liquidity Scores for companies with earnings this week are: North America: Ambac Financial Group, Inc. Credit spreads widened over the last 3 months with the 5 year point moving 46% from 2465bp to 3622bp. Despite this widening, CDS liquidity on the Ambac Financial Group decreased from trading in the 6th percentile to the 13th percentile. Its liquidity score decreased from 7.05 to 7.47 over the 3 month period. American International Group Inc. Credit spreads have tightened 58% over the last 3 months with the 5 year point moving from 3588bp to 1508bp. In conjunction with this tightening of spreads, CDS liquidity on American International Group decreased slightly from trading in the 8th percentile to the 9th percentile. Its liquidity score has decreased from 7.10 to 7.26 over the 3 month period. MBIA, Inc. Credit spreads have widened 3.4% over the last 3 months with the 5 year point moving from 1719bp to 1779bp. Despite this widening of spreads, CDS liquidity on MBIA, Inc decreased from trading in the 5th percentile to the 10th percentile. Its liquidity score decreased from 6.97 to 7.32 over the 3 month period. Berkshire Hathaway Inc. Credit spreads have tightened 48% over the last 3 months with the 5 year point moving from 344bp to 179bp. In conjunction with this tightening of spreads, liquidity on Berkshire Hathaway Inc. decreased from trading in the 12th percentile to the 17th percentile. Its liquidity score has decreased from 7.40 to 7.71 over the 3 month period. Georgia Gulf Corporation Credit spreads have widened 7.5% over the last 3 months with the 5 year point moving from 2236bp to 2405bp. Despite this widening of spreads, liquidity on Georgia Gulf Corporation decreased from trading in the 95th percentile to the 97th percentile. Its liquidity score decreased from 16.38 to 18.16 over the 3 month period. Tyson Foods, Inc. Credit spreads have tightened 23% over the last 3 months with the 5 year point moving from 239bp to 186bp. In conjunction with this tightening of spreads, liquidity on Tyson Foods, Inc decreased slightly from trading in the 8th percentile to the 9th percentile. Its liquidity score decreased from 7.14 to 7.28 over the 3 month period. UK: Aviva plc Credit spreads have tightened 47% over the last 3 months with the 5 year point moving from 308bp to 164bp. In conjunction with this tightening of spreads, liquidity on Aviva plc, decreased from trading in the 14th percentile to the 17th percentile. Its liquidity score increased slightly from 8.28 to 8.04 over the 3 month period. Royal Bank of Scotland Group plc Credit spreads have tightened 31% over the last 3 months with the 5 year point moving from 191bp to 130bp. In conjunction with this tightening of spreads, liquidity on Royal Bank of Scotland Group plc continued to trade in the 3rd percentile. Its liquidity score remained stable from 7.56 to 7.29 over the 3 month period. Taylor Wimpey plc Credit spreads have tightened 75% over the last 3 months with the 5 year point moving from 1800bp to 453bp. In conjunction with this tightening of spreads, liquidity on Taylor Wimpey plc increased from trading in the 94th percentile to the 92nd percentile. Its liquidity score increased from 13.99 to 12.81 over the 3 month period. Thomson Reuters Corporation Credit spreads have tightened 50% over the last 3 months with the 5 year point moving from 150 to 76bp. In conjunction with this tightening of spreads, liquidity on Thomson Reuters Corporation decreased from trading in the 68th percentile to the 84th percentile. Its liquidity score decreased from 10.06 to 11.87 over the 3 month period. Asia: Nikon Corporation. Credit spreads have tightened 55% over the last 3 months with the 5 year point moving from 134bp to 61bp. Despite this narrowing of spreads, liquidity on Nikon Corporation increased significantly from trading in the 49th percentile to the 33rd percentile, its liquidity score jumping from 11.79 to 10.38 over the 3 month period. Toyota Motor Corporation Credit spreads have tightened 65% over the last 3 months with the 5 year point moving from 170bp to 60bp. Despite this tightening of spreads, liquidity on Toyota Motor Corporation increased significantly from trading in the 25th percentile to the 7th percentile, its liquidity score jumping from 10.38 to 8.43 over the 3 month period. Author Contact: Thomas Aubrey, London, Tel: +44 (0) 207 682 7226; Jonathan Di Giambattista, New York, Tel: +1 212-908-0273. Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content. Fitch Solutions' product offerings include Fitch Ratings' research delivery, risk and performance analytics, surveillance tools, structured finance workflow solutions, and pricing and valuation services. The division's service offerings include Fitch Training, a specialist training firm for financial professionals, and Advisory Services, which provide customized consulting to help clients better, understand their risk. Media Relations: Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email: [email protected]; Sandro Scenga, New York, Tel: +1 212-908-0278, Email: [email protected]; Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email: [email protected].

• ข่าวToyota Motor Corporation
• ข่าวthe company
• ข่าวo:eco
• ข่าวo:fin
• ข่าวen