April 23, 2024 08:34 GMT
GACM (BFCM Insurance) T2 Issue: We See FV At MS+200-210bp
FINANCIALS
GACM, the insurance arm of Credit Mutuel (BFCM), is issuing a benchmark Tier 2; we see fair value around at MS+200-210bp for the T2.
- GACM is issuing a 20.5NC10.5 Tier 2 issuance in benchmark size, rated Baa1 (Moody’s) with IPT at MS+250bp area. The three bonds out at longer (7-10Y) workouts on BFCM’s T2 curve are all bullets, whereas this clearly has some extension risk. This issue is similarly rated to those bonds.
- We would have viewed this issue as coming on BFCM’s extrapolated T2 line (or even implying some flattening) but that extension risk means we see fair value coming slightly wider at MS+200-210bp (see graphic).
Keep reading...Show less
107 words