EU REAL ESTATE: Vonovia: RISK of Par Call
• ANNGR 4.75 May 27 is callable at +45 vs OBL 1.3 27
• Calculated to Maturity gives ~103.52 vs 103.39 currently
• The company will carry out a make-whole call if <80% accept
• Under Redemption: (6) can invoke a PAR CALL if >80% has been redeemed.
• Currently ONLY €314m are outstanding. If this goes below €150m then expect a Par call.
• DE000A30VQA4
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FOREX: FX OPTION EXPIRY
Of note:
EURUSD 3.37bn at 1.1650/1.1705.
AUDUSD 1.23bn at 0.6570.
EURUSD 1.8bn at 1.1650 (tue).
EURUSD 1.07bn at 1.1700 (wed).
EURUSD 5.26bn at 1.1600/1.1700 (fri).
- EURUSD: 1.1650 (350mln), 1.1660 (200mln), 1.1675 (621mln), 1.1680 (767mln), 1.1700 (1.22bn), 1.1705 (211mln).
- USDCAD: 1.3950 (454mln).
- AUDUSD: 0.6570 (1.23bn).
EURIBOR OPTIONS: 2yr vs 3yr Midcurve
2RZ5 97.75/98.00cs vs 3RZ5 97.62/97.87cs, bought the 2yr for 2.75 in 2.5k.
GILTS: Off Lows
Some stabilisation after the early sell off means that recent/cycle highs across benchmark yields remain untested/some distance away, depending on the maturity.
- Goldman Sachs continue to expect “lower Gilt yields in coming quarters and forecast 10-Year yields at 4.40% by year-end, with three requirements for relief”…”additional evidence that disinflation is progressing is the crucial element”…”a credible government response to the rising fiscal gap (adherence to fiscal rules, avoidance of inflationary tax rises, and a contractionary budget paving the way for BoE easing)”…”some stabilisation in the global duration backdrop”.
- Note that Goldman continues to recommend 2s5s steepeners.
