HYBRIDS: Hybrids: Movers - BPLN (A3/BBB/A-) Muted Response
BPLN 3.625 Call29 +11c SubSnr +113bps
BPLN 4.375 Call31 +13c SubSnr +122bps
ENIIM (Baa3/BBB neg/BBB) trades with SubSnr +106 in 29s and +135 in 31s
TTEFP (A2/A-) SubSnr +106 for 29s and +116 for 35s (recent deals)
Repsol (Baa3/BBB-) trades rich for the rating with REPSM 4.247 Call28 +86 SubSnr
- The company is explicitly saying that it will reduce net debt to $14 - $18bn
- and potentially retire up to 25% of its Hybrids (this is the S&P limit over 10yrs)
- The senior curve is also screening as unchanged on the day
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EGBS: SocGen Like Buying Belly Of Several 2-/3-/5-Year Flies
Societe Generale continue to like 5-/10-Year curve steepeners but look for carry and rolldown friendly positive iterations.
- They note that “as receiving 2-/3-/5-Year flies can serve as a proxy for 5-/10-Year steepeners in the EGB space (dependent on the issuing country), this view is consistent with buying the 3-Year area of RAGBs, RFGBs, OLOs, DSLs, SPGBs and PGBs on the 2-/3-/5-Year flies.”
CANADA: MNI BoC Preview, Jan'25: Easing Amidst Extreme Uncertainty
We have published and e-mailed to subscribers the MNI BoC Preview ahead of Wednesday's decision.
Please find the full report here: https://media.marketnews.com/BOC_Preview_Jan2025_f128d669a0.pdf
US: Trump To Deliver Keynote Address To House GOP Retreat Today
President Donald Trump will deliver the keynote address to the House Republican policy retreat in Florida today. Vice President JD Vance, a key conduit between the Senate and White House, will attend the retreat tomorrow.
- House Speaker Mike Johnson (R-LA) has a long list of priorities for the retreat, including crystalising a “blueprint” for a reconciliation bill to cover the bulk of Trump's agenda; finalising details of a government funding and debt limit package; and balancing competing demands from his conference for deficit reduction, spending cuts, and tax breaks.
- By week's end, Johnson likely intends to have a robust framework in place for a single reconciliation bill that can resolve a standoff with Senate Republican leaders, who prefer a multi-bill reconciliation process.
- Johnson has indicated he intends to pass a budget resolution by February 24. If this timeline is to hold, Johnson will likely have to release a budget plan within the next two weeks or so.
- Reminder: The Senate and House need to approve the same budget resolution to initiate the reconciliation process. That means broad agreement across a range of issues, including any cuts to entitlement programmes.
- On Tuesday, the House Policy Committee and House Budget Committee will meet to hold independent reconciliation discussions. They will provide reports to the retreat on Wednesday morning.
- Note: Johnson has invited Trump to address a joint session of Congress on March 4. This was erroneously flagged as March 14 in today's MNI US Daily Brief.
