4) Scale into E4mm 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 SW rated BBB-
I suggest scaling £2mm at 6.5% and £2mm at 6.75%. Transaction cost is 6bp from mid.
Yield to call of Nationwide 6.875% • er tual ISIN X81043181269
7.000
6.900
6.800
6.700
6.600
6.484
6.400
Mar 7 Mar 14 Mar 21 Mar 31 Apr 8
2014
EK100011 Corp (NATIONWIDE BLDG SOCIETY) Copyrigh0 2014 Bloomberg Finance L.P. 14-Apr-2014 17:08:59
Tazia for any execution, Q&A to me.
Best,
Nav
Nav Gupta
Managing Director
Deutsche Bank AG. Fatale London
Deutsche Asset & Wealth Management
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