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FINANCIALS: New Issue - Commerzbank - €500m WNG 4NC3 - IPT MS+100 - FV

FINANCIALS
  • We see FV at MS+55 - This is just wide of the existing curve, leaving a few bps on the table for investors.
  • This IPT looks wide, but market sentiment does feel meaningfully weaker than it has until very recently.
  • To confirm our thinking we add the NWG curve. The ratings are close and the NWG 2.75%  2027 was issued very recently at the same seniority and maturity. CMZ generally trades inside the NWG curve, despite the marginally worse rating. The CMZB curve has moved relatively sharply wider from the market tights in late October.
  • Expected ratings A2/A

 

 

 

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  • We see FV at MS+55 - This is just wide of the existing curve, leaving a few bps on the table for investors.
  • This IPT looks wide, but market sentiment does feel meaningfully weaker than it has until very recently.
  • To confirm our thinking we add the NWG curve. The ratings are close and the NWG 2.75%  2027 was issued very recently at the same seniority and maturity. CMZ generally trades inside the NWG curve, despite the marginally worse rating. The CMZB curve has moved relatively sharply wider from the market tights in late October.
  • Expected ratings A2/A