BlackRock Global Long/Short Credit Absolute Return Credit
Case Study: Idiosyncratic Long Event Trade
Background
Unity Media is a German cable operator owned by
Liberty Global with solid fundamentals
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We believe M&A activity in the German cable space will
increase this year and that the company could benefit
from a potential acquisition
Additionally, we believe an IG buyer could potentially
acquire the company
Prospect for M&A led to opportunity
Bond Price (EUR)
105
100
95
90
85
80
www.yo
Jan-16
مرا
Apr-16
Jul-16
mun
Oct-16
human
The Opportunity
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Long Unity Media debt
Jan-17
Unity Media Debt
Apr-17
We believe there is the potential for a credit
upgrade to high single B or low BB as a result of
an acquisition
We identified bonds with attractive coupons and
upside in price and took a long position
Jul-17
لسا
Oct-17
mur
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC.
Jan-18
Source: Bloomberg, as of 3/31/18. Trade is represented by a 3.75%, 2027 maturity bond for Unity Media. For illustrative purposes only. As of 3/31/18, the fund had a 0.41% position in
Unity Media.
BLACKROCK*
USR0418U-470515-1498457View entire presentation