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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.
TRANSPORTATION
- Same lines bookending both ends of €IG consumer & transport this morning; WBA 26s +4 and Mobico 31s -5bps.
- As we said yesterday, latter is coming in from wides, earnings in late August is the key risk event, and beware the unprotected (no curve or CDS) vol on this line when eyeing the carry.
- Moody's in May saw the single £500m 4.25% Perps (Ba2 On review for DG/NR/BB) getting refi'd "well ahead of the first call date" in Nov 2025...yet it trades at £90.8/11.4%/UKT+670 to workout then. We would add it its the front maturity and £28s trade at UKT+183.
- Risks on the perp's is centred on the the Mobico fundamentals but also on the NA School Bus businesses sale potentially failing to materialise. Though not refi'ing would force the co to face a ~doubling in coupons (into 5Y UKT+413.5bps/~8% in Nov '26) and potentially lose the current 50% equity treatment.
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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