Primary Markets
New issue scorecard - 3 portfolios - USD 4.85bn total AUM
New Issues Today
8
across IG, HY, bank capital
Eligible (any portfolio)
5
match at least 1 of 3 mandates
Require Urgent Attention
3
at IPT or guidance stage
Active Orders
1
sized or allocated
| Issuer | Rating | Tenor | Ccy / Size | Spread | NIP | Stage | Elig. | Portfolios | Conf. |
|---|---|---|---|---|---|---|---|---|---|
| Ford Motor CreditAnalysis | Ba2 / BB+ | 5Y | USD 1.5bn | T+215 | 18 bps ATTRACTIVE | IPT | GCACS |
||
| T-Mobile USAnalysis | Baa2 / BBB | 8Y | USD 2bn | T+145 | 12 bps | IPT | GCAEIG |
||
| NetflixAnalysis | Baa1 / BBB+ | 10Y | USD 1.25bn | T+128 | 9 bps | Guidance | EIG |
||
| CBAAnalysis | Aa3 / AA- | 5Y | EUR 1.25bn | MS+36 | 4 bps | IPT | EIGCS |
||
| Citgo Petroleum | B1 / B+ | 7Y | USD 800m | T+340 | 22 bps ATTRACTIVE | IPT | GCA |
||
| HCA Healthcare | Ba1 / BB+ | 10Y | USD 1.5bn | T+185 | 8 bps | Mandate | GCA |
||
| BPCE SFHAnalysis | Aaa | 8Y | EUR 1bn | MS+42 | 3 bps | Priced | EIG |
||
| Carnival Corp | Ba3 / BB- | 5Y | USD 1bn | T+275 | awaiting IPT | Mandate | - |
Commonwealth Bank of Australia (CBA)
Coverage: AUD Bank Sector Note - 10 Apr 2026 - J. Chen
Relative Value
View Details
Estimated FV Spread
MS+32
Current RV
+4 bps
Est. Hedged Spread
SONIA+65
Eligibility
View Details
| R205 | ✓ | Issuer: 3.4% / FX < 30% / Liquidity OK |
| R206 | ✓ | Issuer: 3.9% / Country 17.5% / Liquidity OK |
| C106 | ✗ | Covered/SSA Limit - Issuer Limit 5% |
| C108 | ✓ | Max 10% Covered Bonds |
Order Sizing
View Details
EUR 50m across 2 portfolios
Funding 90%
Compliance
EUR 20m minEUR 80m max
Constraint: 5% issuer
Split: R205: EUR 25m / R206: EUR 25m
Funding Trades
View Details
| Cash | 15m | - |
| CBA 4.2% '29 | 20m | -5 bps |
| NAB 3.1% '29 | 15m | -4 bps |
Relative Value
▾
We estimated fair value for CBA's new 5-year senior unsecured bond using a secondary curve interpolation approach.
The new issue was compared against CBA's existing EUR-denominated senior unsecured bonds maturing within +/-2 years of the 5Y tenor, sourced from Bloomberg NIA. Three same-issuer comparables were identified: CBA 4.2% 2029 (MS+30), CBA 3.8% 2030 (MS+33), and CBA 2.9% 2028 (MS+28).
Peer set expansion was not required - three active same-issuer points provide sufficient curve construction for an issuer of CBA's depth.
Liquidity was verified on Bloomberg ALLQ. CBA 4.2% 2029 is the most actively traded (3 dealer quotes, tight bid-ask) and was adjusted 1 bps tighter to reflect its superior liquidity relative to the interpolated point.
The new issue was compared against CBA's existing EUR-denominated senior unsecured bonds maturing within +/-2 years of the 5Y tenor, sourced from Bloomberg NIA. Three same-issuer comparables were identified: CBA 4.2% 2029 (MS+30), CBA 3.8% 2030 (MS+33), and CBA 2.9% 2028 (MS+28).
Peer set expansion was not required - three active same-issuer points provide sufficient curve construction for an issuer of CBA's depth.
Liquidity was verified on Bloomberg ALLQ. CBA 4.2% 2029 is the most actively traded (3 dealer quotes, tight bid-ask) and was adjusted 1 bps tighter to reflect its superior liquidity relative to the interpolated point.
Step 1: Calculate fair value from secondary curve
Interpolated 5Y FV from the three comparables: MS+31
Step 2: Adjust for liquidity differences
Liquidity adjustment on CBA 4.2% 2029: +1 bps. Adjusted FV: MS+32
Step 3: Apply hedging cost assumption
XCCY basis: 1.5 bps. Hedged spread estimate: SONIA+65 bps
Step 4: Compare to market spread
IPT spread MS+36 vs FV MS+32 = +4 bps new issue premium
This valuation supports proceeding with the trade, as the new issue premium provides adequate compensation for liquidity and execution risk. The 4 bps premium is in line with CBA's 12-month average NIP of 3-5 bps for 5Y senior paper.
Edit Logic
Eligibility
▾
CBA senior unsecured is eligible for 3 of 4 portfolios. C106 is blocked by the covered/SSA allocation limit - the issuer limit of 5% is already at capacity for non-senior instruments.
| Portfolio | Status | Issuer % | Country % | FX | Liquidity | Binding constraint |
|---|---|---|---|---|---|---|
| R205 | ✓ Eligible | 3.4% | 12.1% | < 30% | OK | None |
| R206 | ✓ Eligible | 3.9% | 17.5% | < 30% | OK | None |
| C106 | ✗ Blocked | 5.0% | 14.2% | < 30% | OK | Issuer limit 5% |
| C108 | ✓ Eligible | 2.1% | 8.7% | < 30% | OK | None |
Order Sizing
▾
Recommended total order of EUR 50m across 2 portfolios (R205 and R206). The binding constraint is the 5% issuer limit in R205, which is at 3.4% - an additional EUR 25m brings CBA exposure to 4.2%, leaving headroom.
| Portfolio | Current CBA | Post-trade | Issuer limit | Recommended |
|---|---|---|---|---|
| R205 | 3.4% | 4.2% | 5.0% | EUR 25m |
| R206 | 3.9% | 4.6% | 5.0% | EUR 25m |
Total recommended
EUR 50m
Prepare Order Message - generate a pre-drafted limit order for bank distribution
Funding Trades
▾
Funding sources identified to raise EUR 50m. Cash covers EUR 15m; the remaining EUR 35m comes from selling existing holdings where the new issue offers better relative value. All proposed sells show the new CBA 5Y as 3-5 bps richer than the bonds being replaced.
| Instrument | Proceeds | RV vs New | Portfolio |
|---|---|---|---|
| Cash | EUR 15m | - | R205 |
| CBA 4.2% 2029 | EUR 20m | -5 bps | R205 |
| NAB 3.1% 2029 | EUR 15m | -4 bps | R206 |
| WBC 4% 2030 | EUR 40m | -2 bps | R206 |
| NAB 4.2% 2031 | EUR 30m | -1 bps | R205 |
Total available proceeds
EUR 120m