Category Archives for "Trade Idea Samples"
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..
In the land of the high yielding USD AT1s, a number of issues appear very attractive to own given cash prices and recent sell off. Out of that lot, a couple of issuers stand out given their strong balance sheet, low risk business model and are shielded from most tail risks. One such name is UBS which reduced the reliance from the volatile FICC units to more stable wealth and asset management businesses. The UBS 5 Perp 23 AT1 in USD…..