Mobico - comment

The drums are rolling. Mobico wanted to communicate its deal with the German PTAs in time for its March 15-month year-end. Being long the perps, we are shifting nervously in our seats today as we fear we might have been too optimistic, following the strong showing on the last conference call and the high confidence management expressed in its expectations for the year. We fear a disappointment could hurt badly. As the Perps are drifting down (along with everything else in European HY) below the 70c/€ mark again, we are de-risking a little and are selling 2% of our exposure at €68c/€ this morning, leaving us with ~ 2%.