EM CEEMEA CREDIT: Yapi Kredi Bank (YKBNK): New Issue $500m WNG 10.5NC5.5 T2
Dec-04 08:54
(YKBNK: Ba3/-/BB-)
IPT: 8%A
FV: 7.5%
Yapi Kredit issuing a $500mn WNG 10.5NC5.5 tier 2 subordinated bond. The bonds are expected to be rated B. For comp’s we look at the following:
- AKBank’s 7.875% Sep35 (NR/NR/B) call JUN30 bond is yielding 7.09% or z+375bp
- GARAN 8.125% Jan36 (B1/NR/B+) call Oct30 bond is yielding 7.20% or z+382bp.
- GARAN 8.125% Jan35 (B1/NR/B+) call Jan 30 bond is yielding 7.04% or z+370bp
- GARAN 7.625% APR36 (B1/NR/B+) call Jan31) bond yielding 7.38% or z+400bp
- Turkiye Is Bankasi 7.375% APR36 (INR/NR/B) call Jun30 bond is yielding of 7.36% or z+399bp
Adjusted for maturity and rating we estimate a FV of 7.5%
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UK FISCAL: Reeves repeating that national interest more important than politics
Nov-04 08:45
This repeated line from Chancellor Reeves about the national interest being more important than political gain is also important here. And talking about "honest choices" also seems to suggest large tax rises are coming. But again nothing specific on which taxes in here.
UK FISCAL: Reeves refusing to rule out working people tax increases
Nov-04 08:39
- Something that is possibly a little more fuzzy than expected is Reeves refusing to rule out tax increases on working people.
- There has been lots of coverage of the specific tax pledges (income tax, NIC, VAT) but refusing to rule out the increases on working people does seem to slightly further increase the prospect of income tax increases at basic rate (rather than just higher rate / threshold-based).
GILTS: Off Highs As Reeves Speaks
Nov-04 08:35
UK Chancellor Reeves touches on well-trodden subjects in her initial comments.
- She highlighted an awareness of potential fiscal moves that could spur inflation and indicated her intention to pave the way for further interest rate cuts by the BoE.
- There was no reiteration of the manifesto pledge to not hike the big 3 taxes or not to increase taxes on working people.
- Q&A has begun.
- Gilt futures traded as high as 93.98, piercing initial resistance at 93.96, before a retrace to 93.65 on the lack of fresh information.
- Next resistance at 94.00. Extension through there would deepen the bullish technical theme and switch focus to projection resistance at 94.24 & 94.60.
- Yields 2-3bp lower, 3-4bp off session lows, Curve flatter.
- October yield lows still intact across the curve.
