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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.
CREDIT SUPPLY
Barclays (Baa1/BBB+/A) two-tranche EUR issue today – we see FV on the benchmark 11NC10 at MS+155-160bp.
- Barclays is issuing a benchmark EUR senior unsecured 11NC10 today (alongside an EUR500m FRN). Results last week were ahead of expectations with solid credit metrics, mostly importantly showing some improvements in US card delinquencies.
- The senior unsecured curve for peers (see graphic) at that maturity is shallow but, using HSBC and Citi as vague comparables, the curve flattens reasonably as we tend towards 10Y. The direct intercept is at MS+148bp. Citi’s (A3/BBB+/A, so only marginally better-rated) curve sits around 40bp tight of BACR but the C 2 at a similar maturity is a low cash price issue so we’re happy to see fair value within 40bp of its MS+124bp point.
- We see fair value around MS+155-160bp area for a small NIP above the intercept point.
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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