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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.
CONSUMER STAPLES
- BAT's front perp (the 3% NC 2.3Y) even on the offer side gives Z+193; spread +150bps over its senior for short-end - it's still IG risk and reminder BAT is targeting small deleveraging from here (no rating upside on that though). The reset in Dec '26 is at 5Y MS + 337bps vs. the current NC5Y perp trading at Z+250 (mids).
- Japan Tobacco's 2nd perp (the 3.75% NC 4Y) on the offer side gives Z+156, spread +80bps over senior for the high-grade, low levered and 1/3 govvie owned risk. It's facing a 5Y MS+318 reset in Jan 2029 - well north of implied levels for 5Y sub (high 100s).
Both were issued as dual tranches in 2020 (JAPTOB) and 2021 (BAT). They are well in from wides and BAT perps in particular have a tendency to decompress sharply during broader market weakness - despite non-cyclical exposure. Unclear if offer side can be found, but one to keep an eye on during market weakness (we will flag if/when it widens out).
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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