EU REAL ESTATE: Public Property Invest (PUPRIN: BBB) New 7yr
• IPT: Exp. €300m long 7yr (1st Oct 2032) ms+250a
• FV: MS+210
• PUPRIN 4.625 30s screening ms+182 on bid-side. Curve for is worth 25-30bps comparing HEIBOS and BALDER.
• Worth noting that whilst Public Property is small (GAV €1bn) its tenant base is very safe with 92% Norwegian state entities. WAULT is 5.6yrs and average tenancy is 18 years as leases get rolled over. The entry of Aker to both PUPRIN and SBB shareholder register gives added stability to the structure. For a BBB borrower this name still looks wide.
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MNI EXCLUSIVE: MNI discusses the BOJ's JGB holdings with a former official
MNI discusses the BOJ's JGB holdings with a former official. On MNI Policy MainWire now, for more details please contact sales@marketnews.com
EU-UK: Deal Reached Ahead Of Leaders' Summit
The UK's Minister for EU Relations, Nick Thomas-Symonds, confirms that a deal has been reached with the EU ahead of the EU-UK Summit taking place later today. Reports in the past hour suggested the EU and UK have reached a deal on fisheries that will allow a broader agreement to be signed at today's UK-EU summit. Chris Mason at the BBC writes "A 12-year deal has been done on fishing access for EU boats into UK waters, which will no doubt prompt a big row. The government will argue it has secured improved trading rights for food and agricultural products into the European Union. A defence and security pact will be central to the deal set out in a few hours. Both sides will emphasise the shared desire for deepening cooperation."
- Joe Barnes at The Telegraph posts on X regarding detail of the deal: "Brexit reset deal - Fishing access until 2038. SPS, no time limits on dynamic alignment
[carbon border adjustment mechanism] and [emissions trading scheme] is dynamic alignment. No youth mobility deal, but a promise to revisit at a later under agreed parameters, including rejoining Erasmus." - In terms of today's schedule, UK PM Sir Keir Starmer and other gov't ministers meet with European Commission President Ursula von der Leyen, Council President Antonio Costa and others at Lancaster House in London at 1015BST (0515ET, 1115CET). At 1230BST (0730ET, 1330CET), Starmer, VdL and Costa will hold a press conference, while a ministerial statement on the agreement will be delivered in the House of Commons after 1530BST.
EGBS: J.P.Morgan Recommends 3s/10s BTP Steepener Boxed Vs. Germany
J.P.Morgan have recommended entering 3s/10s BTP steepeners boxed vs. Germany as a “low beta proxy for an underweight BTP position”.
- They note that after the recent 10-Year BTP tightening vs. Germany the spread “is now trading at levels last seen late 2021 when Mario Draghi was the Prime Minister of Italy, and ECB APP and PEPP net purchases were still ongoing. We find Italian spreads expensive on our fundamental fair value framework and also cross-market vs. Euro credit markets.”
