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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.
CREDIT SUPPLY
Caixabank (CABKSM: Baa2/BBB pos/BBB+ pos) is issuing Tier 2 debt this morning – we see fair value around MS+190bp area.
- Caixabank is issuing EUR benchmark 12NC7 Tier 2 sub debt with IPT at MS+225bp area. Expected ratings are: Baa3/BBB-/BBB-/BBBH (… last being DBRS).
- Results were out yesterday, beat consensus and credit metrics looked supportive to spreads, in our view. The equity was up 2% against a flat sector.
- This issue is beyond CABKSM’s current curve – BPCE and ING’s curves both imply something around 5-10bp per year of extension. Using CABKSM 6.125% ’34, at 2yrs shorter workout and MS+180bp, this leads us to a fair value around MS+190bp.
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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