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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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exp. €500m 5Y IPT +230 vs. FV +170 (-60 in)
- Airport retailer Dufry/Avolta (Ba2,BB+) new 31s/7Y that are working out to par call in April 2029 (~5yr) trade at Z+173. The new AFFP's 5Y has only a 3m par-call - we see FV tad inside it at +170 noting it would still leave it above the Avolta curve.
- The 28s give a accurate trading history between the two without early call impact given 1) Avolta 28s have been well below par since issuance in '21 (i.e. pricing to maturity) & 2) the AFFP28s have similar 3m call only. As below AFFP has come in and trades to only a slight discount now.
- Re. if AFFP should be steeper than Avolta - we don't have a firm view on that needing to be the case but do not short-term Avolta has much better prospects (we have a screen cheap on the DUFNSW 28s).
- Our cross check is IAG 29s (Ba2 CW P/BBB-) at Z+137, 33bps inside FV & Lufty 29s (Baa3/BBB-) at Z+118, 52bps inside FV - despite seeming outsized for rating differences, we think both fairly represent the poorer outlook (particularly on cash generation) for AFFP.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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