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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
BBVA (Baa2 dev/BBB+/BBB+) is raising AT1 today, we see fair value at 6.645% coupon area.
- BBVA is raising EUR benchmark PerpNC7 AT1 with IPT at 7.375% coupon area. Using swap rate of 2.845% this is MS+453bp area. Expected ratings Ba2/BB.
- BBVA and Caixabank are similarly-rated so that CABKSM 8.25 at 5.3yrs workout is something of a valuation floor for this issue, even assuming BBVA trades tight of Caixa generally. Intesa is one-notch weaker so fair value can similar to the lower-coupon ISPIM 5.875% at slightly longer workout, we feel.
- We see fair value at MS+380bp, which works back to 6.645% coupon area.
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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