Free Trial
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.
FINANCIALS
Commerzbank is issued EUR Tier 2 today with IPT at MS+260bp area, we see fair value around MS+215-220bp.
- Commerzbank (CMZB) is issuing benchmark EUR Tier 2 (10.5NC5.5) with IPT at MS+260bp and books already indicated above EUR1.6bn (ex-JLMs), rated Baa3.
- CMZB has a couple of good datapoints close by and we note only a 6bp uplift for a year’s extra duration between the 6.5% and 6.75% points, which could entice us towards MS+215bp for a fair value.
- However, the ISPIM 6.184% at MS+206bp (similarly-rated) indicates its contemporary curve should be much higher (there are plenty of low coupon & low price points dragging it down). Similarly, the BPM 5% at MS+240bp (one notch weaker-rated) does mean there’s an alternative with some optionality around takeover premium (BPM is seen as a target in Italy) at quite a big wide to this CMZB 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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok