IFR International - 03.11.2018

making the funds attractive in a rising
interest rate environment. The Fed has hiked
RATESûEIGHTûTIMESûINûTHEûLASTûTHREEûYEARS
h3OMEûINVESTORSûAREûREQUESTINGûMODIlERSû
BEûADDEDûTOûTHEûNEWûBENCHMARKûINûTHEû,IBORû
REPLACEMENTûLANGUAGEûOFû#,/ûDOCUMENTSûTHATû
take into account the historical performance
ANDûMOVEMENTûOFû,IBOR vûSAIDû,AWRENCEû
"ERKOVICH ûAûPARTNERûINûTHEûSTRUCTUREDûlNANCEû
PRACTICEûATûLAWûlRMû!LLENûû/VERY
Investors are also asking that the rate
EVENTUALLYûREVERTûTOû0RIMEûIFûNOûBENCHMARKû
ISûACKNOWLEDGEDûASûTHEûINDUSTRYûSTANDARD ûORû
a vote on a proposed alternative from the
#,/ûMANAGERûDOESûNOTûPASS ûSOURCESûSAID
4HEûTHREATûOFûAûMOVEûTOûPRICIERû0RIMEûMAYû
FORCEûINVESTORSûINûTHEûMOSTûJUNIORûPORTIONûOFû
the fund and managers to call or rework a
#,/ûTOûSETûTERMSûATûMARKETûRATES ûTHOSEû
sources said.

3INCEûTHEû&#!SûANNOUNCEMENTûLASTûYEARû

hWEûHAVEûBEENûFOCUSEDûONû,IBORû

replacement language across structured

PRODUCTSvûSAIDû*OHNû6IBERTûHEADûOFû

structured products at PGIM Fixed Income.

“It is important in securitisations where

THEûEXPECTEDûMATURITYûISûWELLûBEYONDûTHEû

DATEûTHEû&#!ûSPECIlEDûITûWILLûNOûLONGERûBEû

compelling submissions ... and there is not

AûNATURALûMECHANISMûTOûPUTûAûlXûINûPLACEvû

he said.

!û7ELLSû&ARGOûSPOKESPERSONûDECLINEDûTOû

comment.

!22#ûISûEXPECTEDûTOûSEEKûAûSIMILARû

consultation for securitisations as with loans

ANDû&2.SûTHEûGROUPûSAIDûINûAû3EPTEMBERû

news release.

h,IBORûISûHIGHLYûLIKELYûTOûBEûUNAVAILABLEû

after December 31 2021 and these are

LONGER

TERMûASSETSûSOûINVESTORSûSHOULDûBEû

CONCERNEDûANDûLOOKINGûFORûSTRAIGHT

FORWARDû

PROCESSESûOTHERWISEûITûWILLûBEûAûNEGOTIATIONû

ATûTHEûTIMEûWHICHûWILLûBEûHARDERvûSAIDû

!DAMû3CHNEIDERûAûPARTNERûATûCONSULTINGû

lRMû/LIVERû7YMAN

h&ROMûTHEûSTANDPOINTûOFûBUYINGûINTOûAû

#,/ûWHEREûYOUûKNOWûTHEû,IBORûPROBLEMûISû

COMINGûHAVINGûAûSTRAIGHTFORWARDûPROCESSû

WOULDûBEûGREATv

ASIA-PACIFIC MBS

PEPPER PLANS TRIPLE CURRENCY RMBS

.ON

BANKûLENDERûPEPPER GROUP has mandated

CitigroupûCBAûNABûNatixisûStandard

Chartered and Westpac to arrange RMBS

INVESTORûMEETINGSûINû!USTRALIAûANDû%UROPEû

FROMû.OVEMBERûûFORûAûPOTENTIALûNON

SSAR

US DOLLARS

Oct 30 2018 EAA US$1bn Nov 5 2021 3.125 99.892 MS+9 / T+28 3.163

Oct 30 2018 OeKB US$1bn Nov 7 2023 3.125 99.793 MS+8 / T+53.55 3.17

Oct 31 2018 BNG (Sustainability) US$500m Nov 8 2021 3.125 99.886 MS+5 / T+24 3.165

Oct 31 2018 SEK US$1bn Nov 8 2021 3.125 99.861 MS+6 / T+24.4 3.174

EUROS

Oct 30 2018 Hamburg €1.25bn Nov 5 2038 1.45 99.347 MS+3 / B+72 1.488

Oct 30 2018 KfW €5bn Nov 7 2023 0.125 99.895 MS-20 / B+35.1 0.146

Oct 31 2018 Finnvera €500m Aug 7 2028 0.75 99.292 MS-11 / B+43.6 0.826

Oct 31 2018 IsDB Sukuk €650m Nov 7 2023 0.544 100 MS+20 0.544

STERLING

Oct 31 2018 IFC £150m incr

(£500m)

Dec 15 2023 1.25 99.65 G+30 1.317

Oct 31 2018 NRW.BANK £275m Dec 15 2023 1.375 99.521 G+45 1.468

Nov 1 2018 KfW £200m incr

(£2.65bn)

Dec 15 2020 0.375 98.603 G+29 1.048

SWISS FRANCS

Oct 29 2018 Glarner KB SFr100m Nov 30 2026 0.4 100.157 MS+8 / Eidg+56 0.38

Oct 31 2018 Kanton Neuchâtel SFr100m Nov 28 2033 0.75 100.567 MS-9 0.71

Nov 1 2018 Aargau KB SFr75m incr

(SFr185m)

Nov 15 2024 0.15 100.104 MS+5 / Eidg+43.5 0.133

Nov 1 2018 Aargau KB SFr75m incr

(SFr215m)

Nov 15 2027 0.5 100.088 MS+7 / Eidg+54.4 0.49

Nov 1 2018 Thurgauer KB SFr200m Nov 30 2026 0.5 100.707 MS+9 / Eidg+55 0.41

NON CORE

Oct 30 2018 NWB A$15m incr

(A$275m)

May 2 2029 3.3 100.886 ASW+52 /

ACGB+61.5

3.2

GLOBAL BOND SUMMARY DETAILS: WEEK ENDING 2/11/2018

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