Ah yeah, the classic CoC shenanigans when you have big coupon differences in similar maturity bonds. Latest example: Rentokil

RNC DNC

--> Insure the operational risk --> Use the catastrophe bond market to spread the risk --> Job done

Big 6 ( $MS) doing fixed-for-life today. Here we go

Pre-Brexit, this was the kind of conversation Eastern and southern Europeans were having before moving (legally) to the UK

PBB AT1 pulled an Undertaker move after falling to around 20% of face value earlier this year. Who's brave enough to say Thames Water's Class B (now at around 27) will do the same?

This week in US bank preferred land

Just going to leave this (from Seeking Alpha) here and pick it up in mid-September

Still can't get over this recovery on Aareal AT1, going from the low 60s when CRE concerns flared up earlier this year to almost par now (total return of 67%+ over this period)

As term sheet mistakes go, this is rather benign

In a parallel universe, the gigantic Inverse Cramer ETF is currently setting up a monster short that will make 1987 look like a cakewalk

Meanwhile, Julius Baer behaved more like UBS and less like Glarner and exercised an uneconomic AT1 call

This note 👇 (From bloomberg.com/opinion/articl…)

That 18% ytc is now 7.4% (cash price of nearly 114) and Alpha is selling a new AT1 at ~8% IPT

The quoted tweet recounts how someone bought Credit Suisse AT1s at a discount amid reassurances and lost everything just three days later. Hard not to think of the South Park meme:

The first few paragraphs could be mistaken for a description of a fictional Randian hellhole ft.com/content/4e8e6c…