EU FINANCIALS: Cajamar €B'mark 12NC7 Tier 2 - FV
Oct-01 08:46
- IPT: MS+200a
- FV: MS+172
- We put our CAJAMA (NR/NR/BB+) FV slightly wide of the drawn ABANCA (Ba1/NR/BB+) curve - which due to the ABANCA 8.375% 2033 high cash price, should perhaps be marginally steeper between 3 - 5 years than shown, but then likely should be more flat post 5y, in line with the broader tier 2 market.
- CAJAMA and ABANCA trade very tight in Sr Pref space - they also trade virtually on top of BAMIIM at 4/5 years, which arguably just shows how compressed the sr pref market is.
- ABANCA is slightly larger and more diversified, and has historically enjoyed slightly tighter spreads, which we think persist despite the equal Fitch rating.
- CAJAMA drops their S&P rating for this Tier 2 issue, S&P rate their existing Tier 2 BB.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
STIR: Danske Recommend Paying June '26 Vs. Dec '25 & Dec '26 ECB On Fly
Sep-01 08:39
Danske Bank recommend tactically paying the June ‘26 ECB meeting vs. receiving the Dec ‘25 and Dec ‘26 meetings on an ECB-dated OIS fly structure.
- They note that their “baseline is for the pricing of additional rate cuts from the ECB to move closer to zero as the economy has proven surprisingly resilient and downside risks to the outlook have faded. However, the prospects of inflation moving below 2% and wage indicators remaining soft also dampen the likelihood of the ECB kicking off rate hikes in late ‘26”.
MNI: UK AUG MANUF PMI 47.0 (47.3 FLASH, 48.0 JUL)
Sep-01 08:30
- MNI: UK AUG MANUF PMI 47.0 (47.3 FLASH, 48.0 JUL)
MNI: UK JUL M4 MONEY SUPPLY +0.1% M/M, +2.9% Y/Y
Sep-01 08:30
- MNI: UK JUL M4 MONEY SUPPLY +0.1% M/M, +2.9% Y/Y
