MNI BRIEF: Japan Q1 GDP To Fall 0.4% Q/Q; Annualised -1.6%

MNI BRIEF: Canada Opposition Leader Removed From Legislature

CANADA Q1 FLASH ANNUALIZED GDP +2.5%, +0.6% QOQ

MNI WATCH: CNB Seen Cutting 50Bps to 5.25%, Signal Slower Pace

MNI China Daily Summary: Tuesday, April 30

MNI BRIEF: China To Keep Tackling Risks In Real Estate, Debts

US MBA: REFIS -3% SA; PURCH INDEX -2% SA THRU APRIL 26 WK

MNI: US MBA: MARKET COMPOSITE -2.3% SA THRU APR 26 WK

Small upward revision to UK manufacturing PMI; little market impact

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

United Utilities New Issue: FV Analysis at MS+95a

UTILITIES
Credit BulletsUnited Utilities Group Plc (UU.) Market NewsHomepageBank Of England (BOE) Market NewsBulletCreditUK
  • IPT: United Utilities Exp. EU500m 10.25Y Sust. MS+140 Area.
  • UU has no EUR benchmark outstanding.
  • Eyeballing the GBP market, we note that UU (A3/BBB+) trades slightly inside SSELN (Baa1/BBB+), ~5bp around the 10-15 year area.
  • Looking then for EUR comps, we note that VGASDE trades ~5bp wide to SSELN, but has longer maturities outstanding (SSELN out to 7.5Y) and a sensible looking curve shape.
  • VGASDE 0.5 09/34 is quoted at Z+105 bid, but with a ~72 cash price. We conclude that FV for this issue is around MS+95, 10bp inside. We would apply a wide confidence interval to that given this is an imperfect exercise.
Keep reading...Show less
123 words

To read the full story

Close

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.
  • IPT: United Utilities Exp. EU500m 10.25Y Sust. MS+140 Area.
  • UU has no EUR benchmark outstanding.
  • Eyeballing the GBP market, we note that UU (A3/BBB+) trades slightly inside SSELN (Baa1/BBB+), ~5bp around the 10-15 year area.
  • Looking then for EUR comps, we note that VGASDE trades ~5bp wide to SSELN, but has longer maturities outstanding (SSELN out to 7.5Y) and a sensible looking curve shape.
  • VGASDE 0.5 09/34 is quoted at Z+105 bid, but with a ~72 cash price. We conclude that FV for this issue is around MS+95, 10bp inside. We would apply a wide confidence interval to that given this is an imperfect exercise.
Keep reading...Show less