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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.
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Bank of Nova Scotia Green 5Y EUR benchmark senior unsecured issue; IPT is MS+105bp area, we see fair value around MS+85bp area (BNS CN).
- BNS’s existing EUR curve (A2-rated) is all old issues with low coupons/cash prices so is a poor comparator and, in fact, shows well inside (better rated) RBC and TD Bank (both at A1).
- The first graphic shows BNS’s USD senior unsecured curve looking much more logical and trading slightly wide of the two better-rated peers.
- Looking back to the EUR curves (second graphic), we struggle to see this having fair value inside MS+85bp, due to the two (better-rated) bonds from RY and TD (RY 4.375% and TD 3.563%, at slightly longer maturities). We assume the syndicate is looking for a greenium to move this inside those better-rated comparators but we feel this might be a little aggressive.
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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