EU BASIC INDUSTRIES: Celanese (CE Ba1[N]/BB+/BBB-): New Issue FV Updated
Mar-06 14:41
- Price talk: EUR 6NC2.5 Fixed 5%-5.25% (BBG).
- We update our FV for rates and spread moves. Our chart yesterday contained an error on the maturity of the new notes which we have corrected here.
- Adjusting CE 28s for the low cash price, we see that 30bp through the FRFP / SHAEFF curves. We put our FV 35bp through at the longer end, a 45bp extension for 2.5 years. We add a further 12bp to adjust for the issuer’s call option.
- Note the CE 29s have stepped up a total of 50bp out of a possible of 200bp on rating downgrades. The structure makes it a less useful comparator.
We see FV at Z+207 / 4.625%a.
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BONDS: Europe Pi: Long-Setting, Short Cover Across Futures In Past Week
Feb-04 14:40
Structural positioning is largely flat across European bond futures as of Monday's close, per MNI Europe Pi.
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- This is a subtle shift in the longer direction - Bobl and Buxl had been short as of our Jan 28 update, while OAT has shifted from "very short", and BTP has moved from "flat".
- The week to Monday saw longs set across all contracts overall, with the exception of short cover in Schatz. Monday's trade was similar, with short cover in Schatz and Bobl, and longs set across the other contracts.
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