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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.
FINANCIALS
Santander two-tranche senior non-preferred issue: we see fair value for the 5Y at MS+95-100bp and FV for the 10Y at MS+130bp area (see graphic).
- Santander is issuing a 5Y SNP with IPT at MS+130bp area and 10Y with IPT at MS+160bp area, rated Baa1/A-/A-.
- The most populated curves in SNP banking at similar ratings are CredAg and Rabobank which are marginally better-rated (both A3/A-/A+). BBVA is a notch weaker rated and only a small SNP curve.
- The ACAFP 4.25 ’29 sits at MS+84bp and, for nearly an extra year and a rating notch, we’d look for at least a 10bp premium so see the SANTAN issue at MS+95-100bp, which also puts it tight to the line between the SANTAN issues either side (labelled).
- For the 10Y, we note the curves flatten substantially for both ACAFP and RABOBK so don’t see a huge term premium over the SANTAN 4.875% ’31, so can see the fair value as tight as MS+130bp.
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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