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Daily Archives: 24th January 2019

24th January 2019

Back with a vengeance

MARKET CLOSE:
iTraxx Main

76.8bp, -0.9bp

iTraxx X-Over

329.4bp, -1.8bp

🇩🇪 10 Yr Bund

0.18%, -5bp

iBoxx Corp IG

B+168.8bp, -0.5bp

iBoxx Corp HY

B+502bp, +2bp

🇺🇸 10 Yr US T-Bond

2.71%, -4bp

🇬🇧 FTSE 100

6382.41, (-0.64%)
🇩🇪 DAX

12487.36, (-0.45%)
🇺🇸 S&P 500

3122.87, (-0.28%)

Primary going some, and some more…

Thursday was deal day

The ECB meeting had absolutely no impact on the credit primary market in a surprising session which saw over €8bn of IG non-financial deals. Most likely taking the view that the central bank wasn’t going to change anything apart from being more dovish – which is what happened – borrowers flooded the IG vanilla corporate market with deals.

It was a stern effort and will take the month’s primary corporate bond deal flow to much more respectable levels. And there was juice in the deals, with another hybrid in there as well – the third this year. Overall, it was a stunning session in primary and pushed the ECB meeting/press conference into the background as far as corporate bond market investors were concerned.

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24th January 2019

Want a nice trade to play SANTAN AT1 call decision? | Trade Ideas

Will they or won’t they?  SANTAN due to make decision on EURO AT1 callable in March 2019

Banco Santander (SANTAN) is due to report Q4 2018 earnings on 30 Jan 2019.   More importantly, for the bank capital market, would be the likelihood of a call decision on their 6.25% EUR AT1 (which is callable on 12 March 19).

Currently it trades with a cash price of €97 and if called at par, it translates to 3 points upside for 6 weeks risk.  But, if they don’t call, these bonds may drop to €90 or a lower cash price area..

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