EU BASIC INDUSTRIES: Smurfit WestRock(SW): RV Pickup
Nov-20 15:52
- Final terms: EUR500m WNG 6Y Green MS+100.
- Books closed at EUR3.6bn up from EUR2.8bn (market sources).
- Priced ~15bp wide to its curve, with NICs generally higher today on risk aversion.
- That leaves it ~10bp wide to AVY implied levels; we estimate the SW secondary curve has traded 20bp through on average for the past year and ~7bp through currently.
- We have liked AVY credit and highlighted that in the past, but RV looks stretched here. SW should continue its deleveraging path post-merger which could enable an upgrade from Moody’s.
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EURIBOR OPTIONS: ERU6 Call Spread Seller
Oct-21 15:51
ERU6 98.25/50 call spread, paper sells at 5.25 in 5k (vs 98.125 spot, 18% delta)
CHINA-EU: EU Trade Com Says China Team To Visit Brussels 'In Coming Days'
Oct-21 15:49
(MNI) London - Reuters reporting comments from European Trade Commissioner Maros Sefcovic following his call earlier today with China's Ministry of Commerce Wang Wentao. Sefcovic: "The scale of China's export controls, scaled up since April, is unjustified and harmful." Sefcovic: "We agreed to intensify contacts at all levels...I invited the Chinese authorities to come to Brussels in the coming days, and they accepted the invitation."
- Sefcovic: "The prompt resolution of rare earth restrictions is essential...This dramatic expansion of the export controls, as it was proposed by the Chinese authorities last week, is highlighting how negatively this could impact European industries."
- Sefocvic: "The EU is in contact with both sides to support a quick solution for Nexperia...Both sides intend to reduce tensions...[We are] aiming for solutions to restore global supply chains, [there is a ] focus on preventing production halts worldwide."
EGB SYNDICATION: 3.25% Jan-34 ESTONI tap: Priced
Oct-21 15:45
- Reoffer price/yield: 100.484 / 3.181%
- Coupon: 3.25%, annual, act/act
- Spread set at MS + 72bps (guidance weas MS + 80bps area then revised to MS + 75bps area)
- Tap Size: E500bln (WNG)
- ISIN: XS2740429076
- Benchmark: 2.6% Aug-33 Bund + 78.5bps
- Books in excess of EU3.5b (including JLM interest)
- Settlement: 28 October 2025 (T+5)
- Joint Leads: Erste Group, J.P. Morgan (B&D) and Societe Generale
- Timing: FTT immediately, immediately fungible
From Bloomberg
