May 21, 2024 14:29 GMT
Alstom Perps: Pricing Guide
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Alstom is bringing a PerpNC6 rated Ba2
The Median Sen-Sub spread for Ba2-Baa3 Perps is +128bps
The Mean Sen-Sub spread for Ba2-Baa3 is +136bps (Bayer skews the mean)
If we take +145 as a starting point then Sub Yield is:
- EUSA6 = 2.82%
- Sen Z +108
- Sen-Sub +145
- Yield = 5,35%
The final yield may come inside this given how well the seniors are performing today.
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