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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
Unicredit (UCGIM: Baa3/BBB-/BBB-) is issuing AT1 today. Considering the strong demand and pricing of recent issues, we see fair value around 6.6% yield area.
- Unicredit is issuing EUR benchmark PerpNC 6/2032 fixed AT1 with IPT at 7% area. Expected rating is Ba3.
- This is a 7.7yr issue so, using an interpolated swap rate of 2.42% gives an IPT at MS+458bp area. UCG only has a couple of older, lower-coupon AT1s and a 7.5% Perp but at <2yrs workout, so tough to use. ISPIM has a better curve and ISPIM 7% Perp is at a very similar workout and MS+433bp. We would naturally see fair value at a similar level but recent AT1s have priced very keenly, so we feel that MS+420bp may be a better benchmark. This is 6.6% yield area.
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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