May 21, 2024 07:20 GMT
Santander 5Y Covered: We See FV At MS+40bp Area
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Santander (SANTAN: Baa1/A-/A-) 5Y covered bond issue; guidance is MS+45bp, we see fair value at MS+40bp.
- Santander is issuing at EUR500m (WNG) 5Y covered fixed with guidance at MS+45bp. Expected rating: Aa1.
- Looking at SANTAN’s curve, the two closest to this workout are low coupon/price issues so we prefer to interpolate from the 3.375% at 5.7yrs and 3.25% at 3.75yrs, which gives a fair value of around MS+40bp.
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