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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.
UTILITIES
- 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.
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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