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Volkswagen (VW : A3/BBB+): New FRN Looks Wide

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VW only has 2 frns

Toyota has a better curve:

TOYOTA Mar-26 DM+31

TOYOTA Apr-26 DM+33

TOYOTA Feb-27 DM+44

VW Mar-26 trades DM+41

The Toyota curve is 13 bps for 11 months = 1.2bps/month

  • VW curve is 15 months to the June-27 New Issue.
  • So that would be 18bps + a little because the curve is wider. Call it +22bps.
  • Mar-26 DM+41 + 22bps
  • Fair Value = DM+63 for Jun-27

The new issue is coming DM+78. That looks quite wide to where I see FV.

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