HALISTER1: Credit Agricole Recommends Receiving Hungary, Poland 12x15 FRAs

Credit Agricole Recommends Receiving Hungary, Poland 12x15 FRAs

(Bloomberg) -- Credit Agricole CIB sees hawkish leaning of Hungary, Poland markets as “surprising” as both central banks remain on the dovish side, analysts including Sebastien Barbe writes in report.
  • Recommends receiving 12x15 FRAs in both markets:
    • In Poland, at 1.92% with 1.73% target, 2.00% stop-loss
    • In Hungary, at 0.70% with 0.40% target, stop-loss at 0.85%
  • Risk to this trade include any rise in concerns related to French presidential elections, pressure on euro zone
  • Hungary’s 12x15 FRAs currently trading at 0.80%, pricing in 57bps in higher borrowing costs
  • Poland’s 12x15 FRAs at 1.96%, showing bets for almost 25bps of rate increase
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sebastien Barbe (Credit Agricole SA)

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