Free Trial

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.

89 words

To read the full story

Close

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.

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.