makes this bet inexpensive to put on.
v) Because FX vol is so low betting now or soon with a one year time horizon
costs very little. id rather be early than late here
vi) i prefer ly expiry because this trade could take 6-12mths to play out
lY 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
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This Table shows mid-market premiums (in % of notional) as spot and time
change.
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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 5&P
rated 888-
I suggest scaling E2mm at 6.5% and f2mm at 6.75%. Transaction cost is 6bp from
mid.
Yield to call of Nationwide 6.875% perpetual ISIN XS1043181269
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Tazia for any execution, Q&A to me.
Best,
Nay
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Nav Gupta
Managing Director
Deutsche Bank AG, Filiale London
Deutsche Asset & wealth Management
105/108 old Broad St (Pinners Hall), EC2N lEN London, united Kingdom
Tel. +44 (20) 754-13613
Mobile
Email
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