EU REAL ESTATE: Derwent (DLNLN: A- Fitch) New Issue FV
May-23 08:31
• IPT: £Bmk 7yr UKT +125a
• FV: we see UKT +105 to give z+139.
• Existing 31s UKT +95 are z+137. Gilt spread probably matters more here than Z spread. Curves for O, LONQUA and NBHA are close to flat on a Gilt basis but we would be reluctant to go tighter on Z spread than the 31s particularly given the very low cash price (81.25 area).
• Note: coupon is Semi-Annual unlike DLNLN 31s (Annual)
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MNI: UK FLASH APRIL MANUF PMI 44.0 (FCAST 44.0, MAR 44.9)
Apr-23 08:30
- MNI: UK FLASH APRIL MANUF PMI 44.0 (FCAST 44.0, MAR 44.9)
- UK FLASH APRIL SERVICES PMI 48.9 (FCAST 51.5, MAR 52.5)
EGBS: Eurex To Launch EU Bond Future In September
Apr-23 08:27
Eurex will launch a joint EU bond future on September 10 2025, with the exchange noting that the contract affirms its “strategic commitment to supporting European ambitions for greater autonomy at a time when the continent is relying on additional debt issuance”.
- The exchange had previously suggested that it would aim to launch the contract this year after delaying the launch from last year.
- Eurex had noted that it needed to see the right conditions before launching the contract, with confidence that the EU's bond programme would extend beyond 2026 acting as a key pre-requisite.
- Competitor ICE launched their EU bond futures contract back in December, although it has struggled to generate activity. The June ’25 futures currently has an OI of just 156 contracts, with front month OI peaking at 226 contracts during the first few months of trading.
EQUITIES: BNP Option Call trade
Apr-23 08:27
BNP (16th May) 74c, bought for 2.8 in 2.75k.
