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Long-end Ahold's struggle in Primary

CREDIT MACRO
  • Accor coming in line with our FV at +125 while Ahold is already at FV on guidance for the €500m 7y - books look healthy as well.
  • The Ahold 12y is struggling at +125, still 25bps wide from our FV & looks like it will give a double digit NIC - books skewed away from it.
  • As a aside, long-end spreads (10+) continue underperforming - no signs of steepening in rates curve not helping (despite soft landing narrative/cuts being priced out).
  • Plenty of room for spread steepening to continue (against historical avg.'s) particularly if rates curve stays flat; long end vs. 5-7yr still trades -15bps inverted on spreads.

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