EU UTILITIES: TenneT (TENN A3/A-/NR): Consent Solicitation
Apr-17 16:01
- Early instruction fees range from 0.5pts to 2pts.
- Guarantee alternative fee ranges from 0 – 7.5pts. This would be payable if the motion to guarantee TenneT Netherlands fails to pass in the Dutch parliament.
- In the guaranteed scenario bonds should trade close to NETHER, with some SSA style liquidity discount. Low coupons are already slightly through that in some cases; those bonds receive the higher early instruction fees. The EoD angle is now off the table; this gives holders a way out with limited downside. They are incentivised to consent to receive the guarantee.
- For example, TENN 0.5 40 is effectively covered down to Z+110 by a total of 9.5pts in fees should the guarantee not materialise.
- Above par bonds should be the big winner here, with significant upside on convergence to NETHER should the state guarantee be confirmed.
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STIR: SOFR Options Update
Mar-18 15:51
Additional trade since midmorning leaning towards put structures. Projected rate cuts through mid-2025 steady to softer vs. morning levels (*) as follows: Mar'25 steady at -.2bp, May'25 at -5.4bp ( -6bp), Jun'25 at -18.8bp (-19.7bp), Jul'25 at -26.7bp (-28.7bp).
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- -5,000 SFRM5 95.68/95.81 put spds, 5.75 ref 95.87
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- -5,000 0QJ5/2QJ5 9625 put spds, 1.5 Green Apr over
- -3,000 SFRH6 95.75/96.00/96.50/96.75 Iron Condor 16.25 ref 96.325
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- +10,000 SFRJ5 95.68 puts, 0.5 ref 95.855/0.04%
FED: US TSY 52W BILL AUCTION: HIGH 3.945%(ALLOT 28.92%)
Mar-18 15:32
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GILT AUCTION PREVIEW: On offer next week
Mar-18 15:31
The DMO has announced it will be looking to sell GBP2bln of the 4.75% Oct-43 Gilt (ISIN: GB00BPJJKP77) at its auction next Tuesday, March 25.
