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Santander; Iran Denial Issued But Failing To Improve Equity Performance

FINANCIALS

Santander (SAN SM) issued a boilerplate denial of Iran sanctions busting (post-FT story from earlier), indicating it will engage with investigators.


  • Can’t expect much more at this stage but equity failing to recover any form since the announcement and SAN’s cash curve is mixed. There is one UK T2 instrument (SANUK 7.95 10/26/29) trading 14bp wider but there’s a USD line out of the Mexican issuer trading 18bp tighter.
  • Lloyds Banking (LLOY LN), the other bank mentioned in the report, appears less affected today on either side of the capital stack, presumably reflecting its less international and more retail nature.

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