HALISTER1: Credit Suisse Recommends Cutting Duration in Russian OFZ Bonds

Credit Suisse Recommends Cutting Duration in Russian OFZ Bonds

(Bloomberg) -- Crdit Suisse recommends switching into 2021-2022 bonds from 2027-2031 bonds, strategist Nimrod Mevorach writes in report.
  • Target yield differential of +20bps between Jan. 2028 bonds and Aug. 2021 vs. -13bps currently; stop-loss at -30bps
  • Long-end of OFZ curve seems fairly priced, more sensitive to potential reduction of foreign positioning
  • 19s-22s sector stands out as cheap while 27s-31s sector stands out as rich

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
4458Z RU (Russian Federation)

People
Nimrod Mevorach (Credit Suisse Group AG)

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UUID: 7947283

HALISTER: Barclays Increases Size of Africa Placing Citing Strong Demand

Barclays Increases Size of Africa Placing Citing Strong Demand

(Bloomberg) -- Barclays increases size of placing in Barclays Africa Group Limited to 285.69m shares, or 33.7% of co., at a price of ZAR132/share, raising aggregate gross sale proceeds of approximately ZAR37.7b (or GBP2.2b).
  • The placing is expected to result in a pro forma increase of approximately 27bps to the Group’s 31 March 2017 CET1 ratio, from 12.5%
  • Placing is expected to result in a pro forma increase of ~27bps to March 31 2017 CET 1 ratio, from 12.5%
  •  Following completion, Barclays will hold 139m shares in BAGL (or 16.4%), of which 12.7m shares will be contributed to a black economic empowerment scheme in due course, leaving a residual holding of ~15%
  • Completion of placing, associated accounting deconsolidation would result in an estimated loss of GBP1.2b, calculated pro forma on March 31 2017 financial statements
    • Actual loss will be recognised in income statement in Barclays 2Q 2017 financial statements, presented within discontinued operations
  • Statement:Link
  • May 31: Barclays to Sell 22% of Barclays Africa via Placing Link

Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
BARC LN (Barclays PLC)
BGA SJ (Barclays Africa Group Ltd)

Topics
BFW Equity Capital Mkts Europe
Emerging Mkts News, Analysis

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UUID: 7947283