MNI BRIEF: China Rail Freight Up During First Two Months

MNI: PBOC Net Drains CNY4.3 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1738 Fri; -0.60% Y/Y

MNI China Press Digest March 14: PBOC, SSE, USD Products

MNI INTERVIEW2: Policy Lag Justifies Faster CNB Easing - Holub

MNI China Daily Summary: Thursday, March 13

EZ/UK Bond Supply Calendar: SlovGB Auction Monday

US EIA:NAT GAS STORAGE -62 BCF TO 1,698 BCF MAR 07 WK

MNI: US FEB FINAL DEMAND PPI +0.0%, EX FOOD, ENERGY -0.1%

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

HYBRIDS: Orsted Hybrids (Sub: Ba1/BBneg/BBB-): Index move

HYBRIDS
BulletCredit BulletsCEEMEADenmark
  • ORSTED hybrids will now leave the IG Aggregate indices (LBEATREU, LEGATRUU, LP06TREU etc) and enter HY (LG30TRUU)
  • The price action following this move depends on the relative selling from IG holders vs HY buyers.
  • Since ORSTED is Non-Corporate (>50% State owned) it is unlikely to go into LP01TREU where it would have a significant weight with 0.57% in total
  • In LG30TRUU, ORSTED Perps would only have 0.087% weight so there may not be much forced buying.
  • All that said, HY funds tend to be more actively managed rather than passive index followers.
  • ORSTED perps will be 4.40%-4.50% yield vs 5.95% for an Index average HY bond.
101 words

To read the full story

Close

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.
  • ORSTED hybrids will now leave the IG Aggregate indices (LBEATREU, LEGATRUU, LP06TREU etc) and enter HY (LG30TRUU)
  • The price action following this move depends on the relative selling from IG holders vs HY buyers.
  • Since ORSTED is Non-Corporate (>50% State owned) it is unlikely to go into LP01TREU where it would have a significant weight with 0.57% in total
  • In LG30TRUU, ORSTED Perps would only have 0.087% weight so there may not be much forced buying.
  • All that said, HY funds tend to be more actively managed rather than passive index followers.
  • ORSTED perps will be 4.40%-4.50% yield vs 5.95% for an Index average HY bond.