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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
Nova KBM (NOVAKR), OTP’s Solvenian bank, is issuing senior preferred today – we see fair value around MS+215bp.
- OTP (OTP HB Equity) owns Nova KBM so we use its senior preferred curve as our main pricing comparator, at least in part due to the lack of anything more directly relatable at this rating.
- NOVAKR only has one meaningful senior preferred outstanding, which trades c.20bp wide of OTP’s curve, which is logical with one rating notch difference. As the curve terms out, we feel that premium would close a little so we can see this pricing as tight as MS+215bp area.
- There is an OTP bond (OTPHB 6.125) at a slightly shorter maturity and this FV puts the difference at 23bp, which seems fair for the ratings differential alongside the small maturity mismatch, in our view.
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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