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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.
FINANCIALS
BNP issuing USD benchmark AT1, IPT at 8.625%a (BNP FP), see tightening ~50bp to final.
- The last USD AT1 out of a Eurobank was Swedbank (SWEDA SS) on 6-Feb. IPT was 8.25% which tightened to 7.75% for a NC6.5. At Sep-30 coupon refixes to 5Y CMT+365.7bp.
- BNP’s issue today is NC7.5 and similar coupon. SWEDA’s USD curve has a 4% and a 7.25% (at similar years-to-call) which trade with the 7.5% a little over 50bp tighter. (albeit with a 79bp greater reset margin at call).
- BNP has a 4.625% trading around this IPT level already, so we can see this pricing below the interpolation, perhaps in the region of the low 800bps.
- We also note that the 6.625% at the short end is the likely call candidate in the wake of this issue.
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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