February 10, 2025 08:56 GMT
FINANCIALS: SOCGEN - New Issue - € B'mark 10.25NC5.25 Tier 2 - FV
FINANCIALS
IPT: MS+205
FV: MS+163 - or 24bps inside the SOCGEN 5.625%
- The SOCGEN 5.625% 2033 bullet bond trades at Z+186bps, from BFCM and others, we see that about 30bps is the current premium for callable/bullet tier 2's. interpolating between the SOCGEN 1.125% 2031 and this bond gets you to just below Z+165bps
- Alternatively, SOCGEN trades 8bps wide of NBP in Snr Non-Pref space, so we can should expect it to trade at least 12bps back from the BNP 4.1986% 2035, which would be +160bps
- However, this SOCGEN bullet trades 26bps wide of the BFCM 4.375% 2034 and at MS+163 this would be <10bps wide of the BFCM 4% 2035 - we have argued that this BFCM bond screens wide compared to the BFCM 3.875% and the BFCM bullet Tier 2 curve - and we think this remains the case - https://mni.marketnews.com/4hjyWra
Exp. Ratings: Baa3/BBB-/BBB
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