EU FINANCIALS: Financials - Week in Review 20/06/2025
Jun-20 12:30
Headlines
- Sabadell is open to selling TSB as part of its defence against BBVA's 'hostile' acquisition. Santander, Barclays, and Yorkshire Building Society are said to have shown interest.
- Deutsche Pfandbriefbank announced it will exit its US portfolio, which may result in a loss this year. CET1 is guided to remain above 14%. https://mni.marketnews.com/4nc7UVS
- The EU approved UniCredit's plan to acquire Banco BPM, but the Italy golden power conditions remain https://mni.marketnews.com/4n6gDsJ
New Issues
AT1
- Bankinter issued a PerpNC5.5 AT1 at 6%, 0.125% tighter than our FV. The bond is trading c99.7px. https://mni.marketnews.com/4ef0htG
Tier 2
- UniCredit issued at 12NC7 Tier 2 at MS+180, 10bps wide of our FV. The bonds are trading I+182.
- Kommunalkredit issued a 10.25nc5.25 Tier 2 at MS+335, 15 bps wide of our FV. The bond is trading 8bps though our FV now. https://mni.marketnews.com/40f1WcT
- Optima issued at 10.25NC5.25 Tier 2 at 5.5%, inside out 5.625% FV. Trading at c.100.225 px. https://mni.marketnews.com/43Zll2s
Sr
- Landsbankinn issued a 5Y Senior Pref at MS+135, in line with our FV.
- Banco Comercial Portugeus issued a 6NC5 Senior Pref at MS+95, in line with our FV.
- Banco Montepio issued a 4NC3 Senior Pref at MS+148, 3bps wide of our FV.
- Caixa Bank issued a 4NC3 FRN and 10Y, both Senior Pref. The FRN priced 15bps inside our FV, the 10Y was in line.
Ratings
- S&P cut Hypo Voralberg to A with a negative outlook due to rising NPL's. https://mni.marketnews.com/4ef3cTd
- S&P upgraded Nova Ljubljanska to BBB+ on consistently improved earnings and asset quality https://mni.marketnews.com/443TKgF
- Fitch upgraded QBE Insurance to AA-, moving the Tier 2 bonds (on Fitch's rating & composite) to BBB+. The GBP tier 2 trades wide of core GBP tier 2 names like Aviva and Legal & General. https://mni.marketnews.com/44i0Tua
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GILT TECHS: (M5) Bear Cycle Extends
May-21 12:28
- RES 4: 93.00 Round number resistance
- RES 3: 92.53 High May 9
- RES 2: 92.26 50-day EMA
- RES 1: 90.88 Intraday high
- PRICE: 90.46 @ 13:17 BST May 21
- SUP 1: 90.39 Intraday low
- SUP 2: 89.99 Low Apr 9 and a key support
- SUP 3: 89.42 1.00 proj of the Apr 7 - 9 - May 2 price swing
- SUP 4: 89.00 Round number resistance
A bear cycle in Gilt futures remains in play and recent weakness strengthens a bearish theme. Support at 90.92, the 76.4% retracement of the Apr 9 - May 2 rally, has been cleared. This break paves the way for an extension towards 89.99, the Apr 9 low and the next key support. Resistance to watch is 92.26, the 50-day EMA. Clearance of this level would be bullish and signal a potential reversal.
US: MNI POLITICAL RISK - Johnson Eyes Vote On GOP Megabill Today
May-21 12:24
Download Full Report Here
- President Donald Trump will hold a bilateral meeting with South African President Cyril Ramaphosa today amid a diplomatic spat with the largest economy in Africa.
- House Speaker Mike Johnson (R-LA) appears to have reached compromise agreements with House GOP conservatives and SALT Republicans that could unlock a vote on the ‘One Big Beautiful’ reconciliation bill as soon as today.
- The potential vote comes amid warnings from markets and analysts that the fiscal package will balloon US debt. We have a full rundown of how voting is likely to play out inside.
- The G7 Finance Ministers and Central Bank Governors' meeting gets underway in Canada today, with Treasury Secretary Scott Bessent expected to hold sideline meetings with his counterparts from the UK and Japan.
- Secretary of State Marco Rubio is on Capitol Hill again for a second day of testimony on Trump’s fiscal year 2026 budget request. Rubio told a Senate panel yesterday that Russia has pledged to send the US their terms for a ceasefire with Ukraine.
- President Trump yesterday unveiled more details plans for his so-called “Golden Dome” missile defense shield, saying it will be completed by the end of his term.
- Oil prices jumped following a report from CNN that Israel is preparing for a potential strike on Iranian nuclear facilities.
- Poll of the Day: Trump’s approval is lagging on issues considered the most important by US voters.
Full Article: US DAILY BRIEF
BONDS: Monday's Highs In 30-Year Tsy Yields Holds
May-21 12:08
The earlier cross-market moves (USD, bond and equity weakness) have moderated from extremes seen in early NY trade, with Monday’s high in 30-Year Tsy yields (3.0353%) holding and seemingly providing the key to broader stabilisation in USD assets.
