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FINANCIALS: Rabobank - New Issue  - £ B'Mark 6NC5 Sr Non-Pref Green - FV

FINANCIALS
Credit BulletsCEEMEANetherlandsEurozoneBullet
  • IPT: UKT+100 (UKT 0.875% 10/22/29 )  - Z+111
  • FV: UKT+80 - Z+91.
  • We think this bond will come at UKT +70-75 today - but this makes the Netherlands banks look very expensive.
  • Running off the distance to the INTNED curve, when corrected for price would give us a FV of UKT+73. This does result in a steeper implied RABOBK curve and higher fair value than the chart might make appear.
  • Our FV is higher than that because at this level the new issue and from the Netherlands would screen expensive against similarly/better rated peers from elsewhere. Our FV is still flat to RY - while not directly comparable - RY does have at least 1 notch better ratings at the three main agencies than RABOBK. This is also c.20bps inside ACAFP - in EUR RABOBK trades wide of RY and only slightly inside ACAFP - which would be more fair if pricing went off ratings. Inconsistent green premiums lead us to not make any adjustment for this aspect.
  • Exp. Ratings: A3/A-/A+

 

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  • IPT: UKT+100 (UKT 0.875% 10/22/29 )  - Z+111
  • FV: UKT+80 - Z+91.
  • We think this bond will come at UKT +70-75 today - but this makes the Netherlands banks look very expensive.
  • Running off the distance to the INTNED curve, when corrected for price would give us a FV of UKT+73. This does result in a steeper implied RABOBK curve and higher fair value than the chart might make appear.
  • Our FV is higher than that because at this level the new issue and from the Netherlands would screen expensive against similarly/better rated peers from elsewhere. Our FV is still flat to RY - while not directly comparable - RY does have at least 1 notch better ratings at the three main agencies than RABOBK. This is also c.20bps inside ACAFP - in EUR RABOBK trades wide of RY and only slightly inside ACAFP - which would be more fair if pricing went off ratings. Inconsistent green premiums lead us to not make any adjustment for this aspect.
  • Exp. Ratings: A3/A-/A+