EQUITIES: Triple Witching Option Expiries

• German Chancellor Merz is scheduled hold a government declaration resembling an 'Agenda 2030' on Wednesday according to CDU General Secretary Linnemann. The declaration will focus on energy cost and tax cuts as well as skilled worker shortage and bureaucracy reduction. We assume the announcement will bolster plans lined out in the coalition agreement and earlier media reports which we reported on ('Coalition To Focus First on Energy, Rent Freezes, Pension Level, Labour' - MNI, May 08 ). The measures do appear reasonable in principle but the success of especially the bureaucracy reduction plans will also depend on their implementation.
• Key measures are likely to include a general 5ct/kWh energy price reduction, the introduction of an 'industrial electricity price', accelerated investment write-offs for enterprises, a E2000/month tax-free income allowance for pensioners, as well as an unemployment insurance reform intended to increase incentives to take on work. Additionally, CDU highlighted in their 'Agenda 2030' draft published in January here their plans to "at least halve the number of commissioners [there have been 66 such positions advising the last federal administration] and to manage the federal ministries with 10% fewer staff than before.
• Elsewhere, finance minister Klingbeil (SPD) is planning to reach government consensus on a 2025 budget draft proposal by 25 June according to media reports, and passing the bill in parliament by late-September. Deutsche Bank comments that "some of the measures agreed in the coalition agreement [...] could not come soon enough for the economy" - and would subsequently welcome a speedy adoption.

• Date $MM Issuer (Priced *, Launch #)
• 05/12 $1.1B Southern California Gas 10Y +135a, 30Y +150a
• 05/12 $1B Carnival Cruise Line 6NC
• 05/12 $500M EIDP WNG 7Y +120a
• 05/12 $500M Crown Americas 8NC3
• 05/12 $Benchmark Ally Financial 4NC3 +210a
• 05/12 $500M Blue Owl Capital WNG 5Y +265a
• 05/12 $Benchmark Caterpillar 10Y +110a, 30Y +120a
• 05/12 $Benchmark Commonwealth Edison 30Y +135a
• 05/12 $Benchmark UPS +5Y +85a, 10Y +110a, 30Y +135a, 40Y +150a
• 05/12 $Benchmark US Bank 3NC2 +100a, 3NC2 SOFR, 6NC5 +125a
• 05/12 $Benchmark Toyota Motor Cr 2Y +80a, 2Y SOFR, 5Y +100a
• 05/12 $Benchmark Pinnacle West Capital 3Y +120a, 5Y +135a
• 05/12 $Benchmark Woodside Finance TBA
• 05/12 $Benchmark Lennar 5Y +140a
• 05/12 $Benchmark ENI 10Y +175a
• 05/12 $Benchmark L'Oreal 10Y investor calls

SX7E (20th June) 200c, bought for 4.65 in 6k vs 2.52k at 196.40.