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Caterpillar Fin Services (CAT: A2 pos/A/A+): FV ms+37bps

CREDIT SUPPLY
  • FV: ms+37bps
  • IPT: 3yr ms+80/85
  • Secondary curve only has EUR 800m CAT 3.742 Sep 26 z+27 bid-side
  • Fair curve is +8bps for 1 year extension. USD equivalent is more liquid and has +15bps for extending 2->3yr
  • Moody's placed CAT on Pos on 26th July emphasising their growing services revenue to help weather any cyclicality
  • CNHI Mar 27 trades z+54 and it's Baa2/BBB+

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