EM CEEMEA CREDIT: PKO BANK POLSKI SA: EUR BM SNP 7NC6 Green - FV
(PKOBP:A3/-/-)
IPT: MS + 150-155bp
FV: MS + 125bp
- PKO bank Polski issuing a senior non-preferred green 7NC6 bond.
- PKO Bank issued a 3.625% JUN31 SNP (callable JUN30) bond in June earlier this year, which looks to be around z+120bp.
- PKOBP’s shorter dated SNP 4.5% JUN29 (callable JUN28) bonds look to be around z+80bp.
- From a peer comparison we look at Bank Polska Kasa Opeieke (PEOPW: A2/A-/BBB) which issued a 3.75 Jun31 (callable Jun30) bond in May and is currently around z+110bp.
- Adjusting for maturity we estimate FV on the new bonds at MS+125bp.
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MNI: GERMANY ZEW OCT ECONOMIC EXPECTATIONS 39.3
- MNI: GERMANY ZEW OCT ECONOMIC EXPECTATIONS 39.3
- GERMANY ZEW OCT CURRENT CONDITIONS -80
COMMODITIES: Strong Start to the Week for Gold Reinforces Bullish Conditions
A bearish theme in WTI futures remains intact. Last Friday’s move down confirmed a resumption of the bear leg - support at $60.40, the Oct 2 low, has been breached. This highlights an extension of the bearish price sequence of lower lows and lower highs and the move down opens $57.50 next, the May 30 low. On the upside, initial key resistance is at $66.42, the Sep 29 high. Clearance of this level would highlight a reversal. A bull cycle in Gold remains intact and this week’s very strong start to the week reinforces current conditions. The move higher maintains the price sequence of higher highs and higher lows. Sights are on the $4200.00 handle, and $4239.7, a Fibonacci projection point. Note that the trend is in overbought territory. A move down would be considered corrective and would allow the overbought set-up to unwind. Support lies at $3862.6, 20-day EMA.
- WTI Crude down $1.34 or -2.25% at $58.16
- Natural Gas down $0.06 or -1.86% at $3.06
- Gold spot up $32.46 or +0.79% at $4141.83
- Copper down $15.3 or -2.97% at $499.4
- Silver down $0.35 or -0.67% at $51.9834
- Platinum up $30.81 or +1.88% at $1665.95
