From buy French bonds and the EUR, to sell French bonds and the EUR, every possible opinion is included in the list below.
Commerzbank
- Wider OAT/bund spreads may attract investors after the rating downgrade, head fixed income strategist Christoph Rieger says
- Cites January move in spreads
- Sees risk of downgrades in other core countries
Citigroup
- France downgrade is an omen for Germany’s rating
- Netherlands and Austria may also face rating action
Credit Agricole
- Strong buying of French debt to continue, strategist Peter Chatwell says
- Model shows 7-year non-German core debt expensive vs shorter maturities
RBC Capital
- Keep buying 5-year French debt after rating cut; move was priced in, note to clients says
- French spreads were already wider to other top-rated countries
- Expect EFSF’s Aaa rating to be downgraded by Moody’s in coming days
BNP Paribas
- EFSF may be downgraded by Moody’s in a few days, BNP says
- Cites French downgrade, says ESM is different
Nomura
- French downgrade highlights rating risks posed by Spain, which Nomura thinks will lose its investment-grade rating
Investec
- “Massive selling pressure” unlikely in event of EFSF downgrade
Societe Generale
- Luckily for France, global sentiment is “risk on”
- Prudence is a good strategy going into year-end
- OLOs will re-converge with OATs, note to clients says
Morgan Stanley (in note before latest rating downgrade)
- French downgrades may not lead to forced selling
- No Index-driven selling seen
Source: Bloomberg