January 27, 2025 16:13 GMT
FINANCIALS: BFCM - New issue underperforms market
FINANCIALS
BFCM - New issue underperforms market
- BFCM issued a new callable Tier 2 bond - the BFCM 4% 2035 - on the 8th of January which came at MS+175, inside our FV at the time of MS+180.
- The new issue has struggled to keep up with both the BFCM Tier 2 curve and the market more broadly.
- This has made the new issue look more attractive vs its existing curve and bonds like the tier 2 ACAFP 4.375% 2036, which has performed more in line with the shorter BFCM callable tier 2.
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