Credit Highlight : Unicredit SPA SGD
Just a few headlines to while away time.
“UniCredit SpA Tuesday said second-quarter net profit more than doubled from the same period last year, mainly helped by lower loan-loss provisions and higher trading income.”
Aug. 6 (Bloomberg) — UniCredit SpA, Italy’s biggest bank,
said second-quarter profit more than doubled after it cut costs
and bought back debt. The shares jumped to the highest level in
*UNICREDIT RECEIVED 30,000 APPLICATIONS FOR 500 JOBS IN ITALY (Bloomberg)
Credit spreads tightened about 0.25% for the sub 5Y since last week and almost 1% from the highs in June.
The SGD UCGIM 5.5% 07/2023 callable 2018 is still unchanged at 88-90 level, still paying 6.5% for credit protection in Singapore when international levels are about 4.6%.
It is the converse for Indian Oil Corp.
SGD IOCLIN 4.1% 10/2022 is going at 95.50/97.40 (4.7/4.45%) paying about 2% for its credit spread when the USD IOCLIN 5.75% 08/2023 issued last month is paying 3.25%.
But not to worry, the powerful private banking customers are all rushing back along with higher COE prices today. Hearing market on a yield hunt again and on the lookout for Swiber 7.125% 04/2017, bidding at 100 (7.125%) and higher when Unicredit is still at 8%.
I am struggling to make sense of it all.
I’ve almost sold out all my OCC 5.1% at >108. Nice recovery in the last month from 105+ to current prices. Happily thought I could just add on UOB 4.9% (got initial 500K since placement) at good prices. ohhh noooo, asking price has hit 101.55 interbank rate.
Anyway still a winner to almost sold out OCC 5.1% as there is not much to lose from here.
Recovered tens of thousand in lost profits since 22nd May.
THere is latent demand for the pre Basel 3 non Coco debt.
People will soon realise whether they like it or not, the bail in applies to all.