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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
Deutsche Bank (DB: Baa1/BBB/A-) is issuing AT1 today, we see fair value around 7.8-8.0% yield range.
- DB is issuing EUR benchmark PerpNC5.9 Additional Tier 1 with IPT at 8.75% yield area with expected ratings at Ba2/BB/BB+. This translates to MS+583bp (using an interpolated EUR swap rate of 2.922%)
- The DB 6.75% resets to MS+569bp (year shorter workout) and the DB 10% resets to MS+694bp but there appear to be few current restrictions on DB calling these anyway.
- There are few comparators at this length of workout but, using the SANTAN 7% (one notch better-rated), which trades 70-80bp tight of DB 6.75%, add a small term premium, we can see fair value coming around 480-500bp area, a yield range of 7.8-8.0%.
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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