Interesting move as EUR line tightens from similar entity to that issuing inaugural a new type of T2 line in USD today. We suspect some believe it could be tendered for, similarly to the offer last year, if this new structure proves popular.

• Swiss Re Subordinated Finance plc is issuing a USD benchmark 11NC10 subordinated bond today, taking advantage of a change in ratings methodology from S&P. Previously, Tier 2 debt such as this, was typically a 30yr issue, callable after 10yrs. This issue today will be an interesting test of appetite for this more attractive structure.
• At the same time, the best performing Euro IG sub financial bond is SRENVX 2.714% ’52, issued out of Swiss Re Finance (UK) plc, which is streaming 5bp tighter on a flat day for sub financials. This isn’t callable until Jun-32.
• We assume that there is at least some expectation of this being tendered for early, as Swiss Re did with a range of bonds out of the Luxembourg entity in Oct-23.