June 03, 2024 09:17 GMT
NDA Sr Pref Issue: We See FV At MS+55bp Area
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Nordea (NDAFH: A3 pos/A/AA-) is issuing benchmark senior preferred today – we see fair value at MS+55bp area.
- NDA is issuing benchmark 5yr senior preferred with IPT at MS+75bp and expected ratings at Aa3/AA-/AA.
- NDA only has three very low coupon senior preferred, so its curve isn’t a great starting point. Using the other Nordic banks with similar ratings, we see a cluster intercept at around MS+55bp. Handelsbanken is one notch better-rated and its longer-dated bonds are, again, older, low coupon issues.
- Therefore, we see fair value around MS+55bp area.
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