BNP Paribas 5.25% USD Perp
- Issuer rating : A / A+
- Bond rating : BBB-
- Issue size : US$750M
- Next call : 15 Nov 2027
- Reset : 5Y USD + 2.838%
- Newly issued on 15 Nov 2017
- CET1 Ratio of 5.126% triggers temporary write down ( Current CET1 ratio is 12.9%)
- Price at 100.55, YTC is 4.94%
- Funding $65k and financing the rest at 2.5%, net supercharged yield is 9.9%
What is a write down? If the country’s monetary authority agrees to write down, for example, bond price will stay at a certain level, say, 70. Essentially a haircut.
For temporary write down, the price will stay at a certain level, until the bank capital level moves back up above trigger level.
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