EU REAL ESTATE: Public Property Invest (PUPRIN: BBB) New 7yr
Guidance: €300-400m 7.3yr ms+220a
• Books >1.25bn : leads
• 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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Historical bullets
EFSF ISSUANCE: New E3bln WNG 7-year syndication: Allocations out
- Spread set earlier at MS+34bps (guidance was MS+36bps area)
- Size: E3bln WNG
- Books closed in excess of E9.5bln (inc E700mln JLM interest)
- HR 102% vs 1.70% Aug-32 Bund
- Maturity: 27-Sep-2032
- Settlement: 26-May-2025 (T+5)
- Coupon: Short first to 27-Sep-2025
- Bookrunners: DB(B&D/DM)/DZ/GSBE SE
- ISIN: EU000A2SCAU4
- Timing: Hedge deadline 12:10BST / 13:10CET
From market source
OUTLOOK: Price Signal Summary - USDJPY Pierces The 20-Day EMA
- In FX, EURUSD has started the week on a bullish note. The pair remains above last week’s low and recent weakness appears corrective. A key support at the 50-day EMA, at 1.1096, is intact. A clean break of this average would undermine the uptrend. Key trend signals continue to highlight an uptrend and, a key resistance to watch is 1.1381, the May 2 - 6 high. Clearance of this level would signal the end of the correction and highlight a bullish break.
- Recent weakness in GBPUSD appears corrective. The May 13 bounce highlights a possible reversal pattern - a bullish engulfing candle. The pattern remains valid and if correct, signals the end of the recent corrective cycle and a resumption of the uptrend. Key support to watch is 1.3117, the 50-day EMA. Sights are on the key resistance and a bull trigger, at 1.3444, the Apr 28 / 29 high.
- USDJPY continues to trade below the May 12 high and the pair maintains a softer tone. The latest pullback underpins the view that gains since Apr 22 appear corrective. A stronger reversal lower would refocus attention on 142.36, the May 6 low. 145.21, the 20-day EMA. has been pierced, a clear break would strengthen a bearish theme. Key short-term resistance has been defined at 148.65, the May 12 high.
US TSY FUTURES: CFTC CoT Points To Sizable Fund & A Manager Cover In FV
The latest CFTC CoT report revealed a bias towards cover of existing positions for both asset managers and leveraged funds, with a particular focus on trimming exposure in FV futures.
- Note that leveraged funds did still manage to add a cumulative ~$6mn DV01 equivalent of net shorts across TY, US & WN.
- Asset managers remain net long across the curve, while leveraged funds are net short across all contracts.
- Wider non-commercial positioning saw a mix of net short setting and cover, with the cohort remaining net short across the curve (see table below).
