lv EURUSD VOL: Low - but then again most most vols are
What I like about EURUSD is that central bank policy on each side is diverging
(Embedded image moved to file: pic10501.gif)
This Table shows mid-market premiums (in % of notional) as spot and time change.
(Embedded image moved to file: pic30955.gif)
19.5 is mid (offer is 21)
4) Scale into f4mm Nationwide (UK Building Society) 6.875% perpetual which yields 6.4% in GBP and is
likely to be called in 5years
European Bank AT1 HyBrid Bonds (aka coco's) have rallied significantly. we were unable to get the BBVA
issue at the right levels.
A very similar bond which has rallied 30bp less than the BBVA is the Nationwide (uK Building society)
6.875% perpetual which currently yields 6.4% and is likely to be called in 5years time. It has a tierl
capital trigger of 7% and current tierl capital ratio is 13% which is fair margin.
The Nationwide one I'm suggesting today is rated Fitch/S&P BB+, its parent is Fitch/S&P rated single-A
The BBVA bond we tried to buy earlier is rated Fitch BB-, its parent is S&P rated BBB-
I suggest scaling L2mm at 6.5% and L2mm at 6.75%. Transaction cost is 6bp from mid.
Yield to call of Nationwide 6.875% perpetual ISIN XS1043181269
(Embedded image moved to file: pic19022.gif)
Tazia for any execution, 0&A to me.
Best,
Nav
(Embedded image moved to file: pic30035.gif)
Nam Gupta
Managing Director
Deutsche Bank AG, Filiale London
Deutsche Asset & wealth Management
jnners Hall), EC2N lEN London, United Kingdom
Any proposed ideas are being delivered to you by the DeAWM Key Client Partners ("KCP") London desk for
discussion purposes only, and do not create any legally binding obligation on the part of Deutsche Bank
AG and / or its affiliates ("DB"). These ideas are for the consideration of the intended recipients of
this mail only. The KCP London desk does not provide investment advice. All intended recipients are
Professional investors (as defined by MiFID), who understand the strategy, characteristics and risks
associated with any ideas proposed herein and will be able to evaluate it independently. All trades on
proposed ideas shall be subject to the relevant internal approvals prior to execution.
(Embedded image moved to file: pic12137.gif)
CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 101722
CONFIDENTIAL SDNY_GM_00247906
EFTA01447174