EU REAL ESTATE: Property: Week in Review
The property names in the IG index were just over 1.5bps tighter on the week. There were outsized moves tighter for BB rated names New Immo Holding (CEETRU) and Alstria Office (AOXGR). Primary was busy.
• Prologis priced €1bn total in 7yr and 12yr. The 12yr came 15bps inside what we considered fair. We looked at the recently issued 2034 & 2043 notes for comparison, which trade wide to low coupon bonds. The 43s now stand out vs the curve but finished the week unchanged.
• CBRE European Logistics Partners’ inaugural 7yr was well-received, pricing 12bps through the CBRE Pan-Europe Core curve. Logistics is a favoured sector within the property space.
• Another logistics company, CTP NV, was upgraded by S&P to BBB flat. Moody’s have also been on Pos Outlook since May.
• Inmobilaria Colonial came to market with an €800m 6yr. Priced in line and held its level.
• In’li, a French social housing provider, was cut by Fitch to A+ following the sovereign downgrade. The agency cut 27 government related enterprises on Friday.
• Sirius Real Estate tapped their 28s for a second time. €105m was issued in a sole-led transaction by HSBC.
• VIA Outlets reported steady improvements in leverage, portfolio valuation and tenant performance.
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SWEDEN: Finance Minister: Autumn Budget Likely To Be Expansive
"SWEDISH FINANCE MINISTER: AUTUMN BUDGET LIKELY TO BE EXPANSIVE, WORST THING IN CURRENT SITUATION WOULD BE TO BE RESTRAINED" RTRS
Not a surprise. SEB wrote this morning that " The National Institute of Economic Research has previously indicated a scope of SEK 34 billion [of fiscally expansionary measures], but 60-70 billion seems to be the opinion among analysts.
RUSSIA: Lavrov-Russia Ready To Discuss Political Aspects Of Settlement w/Ukraine
Russian state media is carrying comments from Foreign Minister Sergey Lavrov, who is speaking in Moscow after a meeting with his Jordanian counterpart Ayman al-Safadi. Regarding the war in Ukraine, Lavrov claims that Russia "is ready to work on Ukraine in any format, with the understanding that the work will be honest." Reuters reports Lavrov saying Russia is "ready to discuss the political aspects of the settlement with Ukraine".
- While Lavrov's comments may indicate an intention to begin talks, there has been no apparent movement on Putin-Zelenskyy talks, which have been pushed by US President Donald Trump. It remains to be seen whether Trump will look to turn up the pressure on Moscow if it is seen as dragging its heels on a potential bilat.
- Lavrov claims that Russia is "in favour of a security guarantee for Ukraine being reliable." Says the Istanbul Agreement of 2022 is a good example. This was a draft deal that, as the Institute for the Study of War noted "surrenders Ukraine's sovereignty and prohibits any efforts by Ukraine or any other state to maintain Ukrainian armed forces adequate to deter or defend against, a future Russian attack."
- Lavrov: "Questions of security cannot be resolved without Russia...We hope Washington understands that discussing security issues without Russia is a path to nowhere"
- Lavrov: "We didnt hear any constructive ideas from Europeans at their meetings with Trump...We only see the EU's clumsy attempts to change Trump's position on Ukraine and aggressively escalate the situation."
US TSY OPTIONS: Large Oct'25 10Y Call Interest - Ongoing
- Over 87,900 TYV5 113 calls, 20-23 ref 111-24.5 to -25.5
- 50k traded at 19 yesterday, total volume over 78k, saw open interest rise by 48,990 to 158,754.
