MNI BRIEF: Japan Oct Sentiment, Outlook Indexes Both Fall

MNI: PBOC Net Injects CNY116.4 Bln via OMO Monday

MNI: China CFETS Yuan Index Down 0.21% In Week of Nov 8

MNI BRIEF: PBOC Has Room For More Easing : Research Head

MNI: PBOC Sets Yuan Parity Higher At 7.1786 Mon; +1.55% Y/Y

CHINA PBOC CONDUCTS CNY133.7 BLN VIA 7-DAY REVERSE REPOS MON

MNI: NORWAY OCT CORE CPI +0.2% M/M, +2.7% Y/Y

MNI: NORWAY OCT CPI +0.6% M/M, +2.6% Y/Y

MNI BRIEF: China Oct CPI Slows For 2nd Month To 0.3% Y/Y

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CREDIT SUPPLY: Lloyds Bank GmbH Covered Issue: We See FV Around MS+33bp Area

CREDIT SUPPLY
BulletCredit Bullets

Lloyds Bank’s (LLOYDS: A3/BBB+/A) German entity is issuing covered bonds today; we see fair value around MS+33bp area.

  • Lloyds is issuing EUR500m WNG 5Y covered fixed with guidance at MS+37bp area. Expected rating is Aaa.
  • Lloyds Bank plc has some old, low coupon covereds outstanding but Lloyds Bank GmbH is a new issuer with the majority of its mortgage lending actually in Netherlands. We’ve plotted a couple of German lenders’ covered bonds, alongside ING, which is perhaps the best comparator. There’s an INGB 3.2003% ’29 at MS+32bp, which appears a fair value floor to us. Therefore, we see fair value around MS+33bp area.
101 words

To read the full story

Close

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.

Lloyds Bank’s (LLOYDS: A3/BBB+/A) German entity is issuing covered bonds today; we see fair value around MS+33bp area.

  • Lloyds is issuing EUR500m WNG 5Y covered fixed with guidance at MS+37bp area. Expected rating is Aaa.
  • Lloyds Bank plc has some old, low coupon covereds outstanding but Lloyds Bank GmbH is a new issuer with the majority of its mortgage lending actually in Netherlands. We’ve plotted a couple of German lenders’ covered bonds, alongside ING, which is perhaps the best comparator. There’s an INGB 3.2003% ’29 at MS+32bp, which appears a fair value floor to us. Therefore, we see fair value around MS+33bp area.