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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.
FINANCIALS
Monte Paschi (BMPS IM) issued senior preferred today: we see pricing able to tighten towards 4.70% area.
- MPS is a couple of notches lower-rated than mid-sized peers BPM and BPER which at least have curves that extend closer to this maturity. MPS trades at 80-90bp wide of those curves (see first graphic) which indicates around 4.7%.
- Working via spreads (second graphic), MPS trades around 70bp wide of its peers which, against 4Y EUR swaps at 2.637% and BPM’s short 4Y trading at MS+141bp, gets us to around 4.75% (2.637%+1.41% plus 70bp premium).
- MPS last tapped the sr pref market in Aug-23 which is now at 4.657% so this would be a floor, in our view.
- Last update: IPT: Monte Paschi EU500m WNG 5NC4 Sr Pref 5% Area (1) with books >EUR1bn.
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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