Free Trial

CREDIT SUPPLY: RAI-Radiotelevisione Italiana (RATEIT: Baa3): Comps

CREDIT SUPPLY

This will look aggressive but FV is +150

  • Exp. EU300m 5Y Fixed (July 10, 2029) MS+215 Area
  • Govt owned (99.6%)
Italians:
  • BTPS ms+60
  • ENELIM ms+78
  • ATOSTR ms+120
  • RATEIT 24s typically traded about +60 vs ENEL so ms+138 clearly well inside of IPT
  • RATEIT 24s +67 to BTPs when it was a 5-6yr so ms+127

Media

  • DECFP ms +116
  • RATEIT 24s typically were about +30 to JCDecaux which implies ms+146 for new issue
  • ITVLN 8yr is ms+147 ; a 5yr would be ms+118 ITV does have +125 steps for Junk which it needs
In summary
  • vs BTP we get ms+127
  • vs ENEL we get ms+138
  • vs DECFP we get ms+146

RATEIT is a stable and vital part of Italian society and FV is +150. It will probably price +180 area which makes FV look wrong but this is a safe name.

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.