Free Trial
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
Swiss Re raising USD benchmark sub debt today. We see fair value around T+155-160bp area.
- IPT: Swiss Re $Bmark 11NC10 Sub T+175.
- Using US 10yr SOFR/GV swap spread of c.36bp, the IPT is MS+211bp. Plotting this A3-rated issue against some other USD insurance issuers, the closer curves are two Japanese majors which are both A3-rated.
- Nippon has underperformed Sumitomo quite meaningfully (c.20bp since Jan-24) so we feel fair value is likely to lie somewhere between the two curves. We also note there’s a Munich Re (one notch better rated) at MS+176bp on shorter workout so, even with an assumption of curve flattening, we’d struggle to see SREN fair value being under MS+190bp, which translates back to T+155-160bp area.
- The SRENVX 5% on the graphic is out of a different entity and one notch better-rated than this issue.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok