Today we continue the study of Consob on bank bonds in the placement, taking into consideration the variable rate, this study is based on the spread over Euribor, as you can see from the table, the spread offered to retail is negative ! At the institutional is positive, we present verbatim what scholars write Consob.
"In the retail bids for bonds with a credit equal to that of
Republic (Aa2) the average and median spread is negative for more than 10 basis points
, while for bonds rated A1 and A2, the spread is negative
median for more than 20 basis points those rated A3 to Baa1 and the median spread is
negative for about 10/15 basis points for the spread BCC median is zero (regardless of the presence
coverage of the guarantee fund Federcasse).
Again, there is clearly a very weak correlation between the returns
and issuer risk. The cost of raising a floating rate at retail is on average significantly below Euribor
with very high frequency even if the risk is higher issuer
to that of the Italian Republic, where it is possible to estimate that the same collection in
€ Italian Treasury
international institutional investors - through the so-called bond Republic of Italy - in the period in question is
occurred at rates higher than Euribor.
As shown for fixed-rate securities, the situation is radically different
for deals for institutional investors. The spreads on Euribor (the
simply spread) is on average about 50 basis points to
banks that have the same credit quality of the Italian Republic (this confirms the fact, already found in connection with the issuance
of fixed rate bonds, which, with the same rating
, institutional investors require a higher return than that required in the sovereign
that incorporates a liquidity premium) and approximately 120 basis points
for banks rated Aa3; for banks in the range of the spread rating A1
median rises to over 180 basis points, while those rated A2
spread the median drops to around 60 basis points for banks rated Baa2
the spread is close to 200 points base.
It is thus clear that for the floating rate notes, the same risk
broadcaster, the returns offered to retail investors is significantly lower than
those offered to institutional investors in international placements, as well as
be very weakly related to the issuer risk. "
As you can see also the variable-rate bonds in employment are to be avoided.
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