IFR International - 20.10.2018

SSAR

US DOLLARS

Oct 16 2018 ESM US$3bn Oct 23 2020 3 99.871 MS flat / T+20.1 3.067

Oct 16 2018 IADB US$500m Oct 25 2021 3mL-2 100 3mL-2 -

Oct 17 2018 NRW.BANK US$1bn Oct 26 2020 3mL+1 100 3mL+1 -

Oct 18 2018 Muni Fin US$500m Oct 26 2020 3mL+1 100 3mL+1 -

EUROS

Oct 16 2018 Hessen €750m Oct 10 2033 1.3 99.582 MS-4 / B+74.8 1.331

Oct 17 2018 Andalucia €600m Oct 31 2028 1.875 99.656 BONOs+29 1.913

Oct 17 2018 BNG €750m Jul 15 2039 1.5 98.912 MS+5 / B+68 1.562

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 19/10/2018

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)

"UTû30û!"3ûANALYSTû!MYû-ARTINûALSOûHASû
WARNEDûTHATûISSUER
FRIENDLYûTERMSûONûRECENTû
BONDSûCOULDûSPELLûDOWNGRADESûONûLOWER
RATEDûTRANCHESûANDûMAGNIFYûLOSSESûONûNOTESû
WITHûTHINûCREDITûBUFFERSûIFûPERFORMANCEû
DETERIORATES
&ITCHûWARNEDûINû!UGUSTûTHATûCREDITûRATINGû
OPINIONSûONûNEWûTYPESûOFûRESIDENTIALû
MORTGAGEûBONDSûHAVEûBECOMEûINCREASINGLYû
DIVIDEDûMAKINGûITûHARDERûFORûINVESTORSûTOû
GAUGEûTHEIRûRISKS
)TSûOWNûRATINGûASSESSMENTSûOFTENûCAMEûOUTû
LOWERûTHANûRIVALSû&ITCHûSAID
!MONGûINDIVIDUALûDEALSûTHATû&ITCHûHASû
CRITICISEDûWASûANûAIRCRAFTûTRADEûFROMûGLOBAL
JET CAPITAL (BJETS ûINûLATEû
&ITCHûSAIDûTHEûDEALûDIDûNOTûWARRANTû
INVESTMENT
GRADEûRATINGSûBUTû+ROLLûSTOODûBYû
ITSû3INGLEû!ûRATINGûONûTHEû#LASSû!ûNOTESûANDû
4RIPLEû"ûONûTHEû#LASSû"ûTRANCHES
4HEûDEALûWASûEVENTUALLYûPULLEDûFROMûTHEû
MARKETûRESTRUCTUREDûANDûSOLDûMONTHSûLATER
h7EûREALISEûTHISûISûAûSOURCEûOFû
CONSTERNATIONûFORûSOMEûISSUERSûBUTû

INVESTORSûCLEARLYûBELIEVEûTHATûTHEûVALUEûOFûTHEû

UNSOLICITEDûCOMMENTARYûISûMAXIMISEDû

BEFOREûAûTRANSACTIONûPRICESvûVANûDERû

7EIJDENûSAID

BROADER SCOPE

2EGULATORSûHAVEûENCOURAGEDûUNSOLICITEDû

OPINIONSûTOûSPURûGREATERûSCRUTINYû

TRANSPARENCYûANDûCOMPETITIONûAMONGûRATINGû

AGENCIESûSINCEûTHEûGLOBALûlNANCIALûCRISIS

4HEû53û3ECURITIESûû%XCHANGEû

#OMMISSIONûSAIDûLASTûYEARûTHATûSUCHû

OPINIONSûCANûHIGHLIGHTûDIVERGENTû

VIEWPOINTS

&ITCHSûREPORTûLASTû-ONDAYûFOCUSEDûONLYûONû

AREASûOFûSTRUCTUREDûlNANCEûTHATûCOULDû

WARRANTûMOREûUNSOLICITEDûOPINIONSû"UTû

&ITCHûHASûALSOûHASûBEENûANûOUTLIERûONûSOMEû

LARGEûCORPORATEûDEBTûlNANCINGS

7HENûANHEUSER-BUSCH INBEVûACQUIREDû

SABMILLERûINûû&ITCHûSAIDûINûANûUNSOLICITEDû

OPINIONûTHATû!"û)N"EVSûHIGHûLEVERAGEûONLYû

WARRANTEDû"""ûGRADESû)TûAFlRMEDûTHATûINû

-ARCHûONûEXPECTATIONSûTHATûDELEVERAGINGû

WILLûBEûSLOW

-OODYSûANDû30ûWEREûMOREûLENIENTûONû

THATûDEALûBUTûHAVEûTURNEDûUPûTHEûHEATûONû

COMPANIESûSLOWûTOûMEETûLEVERAGEûREDUCTIONû

TARGETS

-OODYSûRECENTLYûTHREATENEDûTOûLOWERû!"û

)N"EVSû!ûRATINGûBYûUPûTOûTWOûNOTCHESû

UNLESSûITûCANûPROVIDEûAûCREDIBLEûPLANûTOû

REDUCEûLEVERAGEûMOREûQUICKLY

,ASTû-ONDAYû-OODYSûDOWNGRADEDûFOODû

GIANTûCONAGRA BRANDSûONEûNOTCHûTOû"AAûONû

THEûBACKûOFûITSûPLANNEDûACQUISITIONûOFû

PINNACLE FOODSûINûAû53BNûTAKEOVER

4HATûISûINûLINEûWITHû&ITCHûWHICHûALREADYû

RATESûTHEûCOMPANYûATû"""nû30ûSTILLûHASûTHEû

COMPANYûAûNOTCHûHIGHERûATû"""ûBUTûWITHûAû

NEGATIVEûOUTLOOK

#ONAGRAûSOLDûAû53BNûBONDûDEALûLASTû

-ONDAYûTOûHELPûlNANCEûTHEûACQUISITION

h6IGILANCEûONûLATE

CYCLEûMARKETûBEHAVIOURû

ISûCERTAINLYûMERITEDûFORûSECURITISEDûASSETû

TYPESûTHOUGHûITûISûSOMETHINGû&ITCHûISûALSOû

ESPOUSINGûINûOTHERûMARKETSûBROADLYvûSAIDû

"RETTû(EMSLEYûGLOBALûANALYTICALûHEADûATû

&ITCH

ONLINE LENDER UPGRADE PREPS

DEBUT ABS

UPGRADEûANûONLINEûLENDINGûCOMPANYûSTARTEDû

BYûFORMERûLENDINGCLUBûFOUNDERû2ENAUDû

,APLANCHEûISûLOOKINGûTOûSELLûAûDEBUTûASSET

BACKEDûBONDûFOURûPEOPLEûWITHûKNOWLEDGEûOFû

THEûDEALûTOLDû)&2

4HEûCOMPANYûISûEYEINGûAûFOUR

TRANCHEû

53MûISSUEûWITHûRATINGSûOFû3INGLEû!ûTOû

3INGLEû"ûFROMû+"2!ûWHICHûCOULDûHITûTHEû

MARKETûEARLYûTHISûWEEKûACCORDINGûTOûDEALû

DOCUMENTS

5PGRADEûHASûHIREDûCredit SuisseûTOûSTRUCTUREû

THEûDEALûANDûACTûASûAûJOINTûBOOKRUNNERûWITHû

Jefferies

,APLANCHEûCO

FOUNDEDû5PGRADEûINûTHEû

MONTHSûAFTERûHISûRESIGNATIONûINûûASû#%/û

OFû,ENDING#LUBû4HATûRESIGNATIONûFOLLOWEDû

ANûINTERNALûPROBEûTHATûFOUNDûSOMEûLOANSû

EARMARKEDûFORûAûSECURITISATIONûHADûBEENû

ALTEREDûUNDERûHISûWATCH

4HEûREVIEWûALSOûFOUNDûLAXûCONTROLSûATûANû

INVESTMENTûMANAGEMENTûARMûOFû

,ENDING#LUBûTHATûPURCHASEDû,ENDING#LUBû

LOANS

3OMEûOFûTHOSEûlNDINGSûSPARKEDûINQUIRIESû

ATû,ENDING#LUBûBYûTHEû$EPARTMENTûOFû

*USTICEûTHEû&EDERALû4RADEû#OMMISSIONûTHEû

53û3ECURITIESûû%XCHANGEû#OMMISSIONûANDû

THEû.EWû9ORKû3TATEû$EPARTMENTûOFû&INANCIALû

3ERVICESûACCORDINGûTOûTHEûBONDûDEALSû

DOCUMENTS

4HEû3%#ûALSOûCONTACTEDû5PGRADEûABOUTû

,ENDING#LUBSûINTERNALûPROBEûTHEûDEALû

DOCUMENTSûSHOW

GLOBAL STRUCTURED FINANCE IN US$
BOOKRUNNERS: 1/1/2018 TO DATE

Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 246 89,450.52 15.0
2 Credit Suisse 174 66,778.61 11.2
3 JP Morgan 208 66,087.75 11.1
4 Wells Fargo 183 62,202.94 10.4
5 BAML 167 54,983.95 9.2
6 Goldman Sachs 104 34,985.71 5.9
7 Morgan Stanley 96 32,848.81 5.5
8 Barclays 111 31,372.03 5.3
9 Deutsche Bank 108 25,958.56 4.3
10 RBC 69 20,001.80 3.3
Total 1,086 597,383.63
Including securitisations (Euro, foreign, global and domestics, excluding
CDOs) and PFI bonds.

Source: Refinitiv SDC code: B16b