February 14, 2025 03:06 GMT
CREDIT SUPPLY: Mirae Asset Securities (DAESEC, Baa2/BBB/Unrated) - FV on Mandate
CREDIT SUPPLY
Mirae Asset Securities (DAESEC, Baa2/BBB/Unrated) - FV on Mandate
Mandate: $Bench 3yr
FV estimate: T+90 (zsprd +113bp)
- Mirae has mandated banks to bring a $3yr to the market in the near future, possibly next week. Mirae is the largest securities firm in Korea by assets, and while there is no explicit support, we would expect the State to be there if needed.
- The recently released 2024 numbers, which were in line with consensus, showed operating profits were up 77% YoY to KRW894bn on the back of higher brokerage volumes and a 54% rise in trading income.
- In terms of possible fair value, there is already a decent secondary curve, with the 5.5% 27s and 6% '29s issued last year. We also overlay peers, Korea Investment & Securities, China Cinda and NH Investments.
We think a theoretical fair value at the 3yr point would be around z+113bp (T+ 90bp)
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