Please see important disclosure on the last page of this study.
Topics Page
Market environment Market overview 2
Primary market 3
Focus topic Impact of Trump’s election on corporates 5
ECB tracker Monthly analysis of the CSPP 7
CDS performance New issues vs. ECB 11
Rating changes For the period from 1 January 2017 to 31 January 2017 12
New issues In the period from 1 January 2017 to 31 January 2017 14
Annex Charts & diagrams 16
NORD/LB Research portal PROFI Bloomberg code: NRDR <GO>
Fixed Income Research
Corporate Bond Strategy 10th February 2017 02/2017 No. 6
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 2 of 23
Market environment Market overview
Analysts:
Martin Strohmeier
Kai Witt
The performance of corporate bonds varied in January. No significant
increase in risk aversion was noticeable for corporate bonds, despite
Trump’s inauguration and the daily Twitter storm. However, the traditionally
strong month of January in the primary market slightly affected risk
premiums in the investment grade segment.
Trump and tapering concerns
influence the market
Fears that the ECB might start tapering earlier in 2017 (than already priced
in by the markets) were the key driver for the trend in investment grade
spreads in recent weeks (along with the Trump effect). Additional warning
signs of a dampening trend in key ratios at companies are visible as a result
of the CSPP. In particular, higher debt levels and increased M&A activities in
Europe have resulted in distorted perception and pricing of risks since mid-
2016. If the ECB leaves the corporate bond market and the CSPP is no
longer a support factor in the medium term, an adjustment in prices would be
the logical consequence. Although the forward guidance communicated by
Mario Draghi should reduce tapering fears, as has been the case in the past,
this would only soften the blow rather than preventing it. It is worth pointing
out that the introduction of the CSPP generated risks in the markets, which
will only become evident once the programme expires. Credit risks are not
currently priced in adequately.
Corporates are front-loading
to avoid tapering uncertainty
in HY2 2017
Although some of the risks are evident at companies (e.g. increase in debt
ratios), the corporate primary market started the new year with a record
volume of EUR 34bn. Following a record year in 2016, issuing activities have
continued at a high level. Overall, we expect strong issuance levels in 2017,
since companies will probably front-load in the first half of the year due to
concerns about an early reduction of CSPP bond buying and in view of an
anticipated minor increase in interest rates. In our opinion, the tapering
discussion will dominate the second half of this year, with spread widening
being the logical consequence. In view of the rising yields on European
government bonds since Trump’s election, market players are currently
pricing EUR IG corporate bonds as a less attractive investment relative to
sovereign bonds. The prevailing trend of yield investors investing in
investment grade corporate bonds may actually be broken in the course of
2017 if yields on government bonds continue to increase. Institutional
investors would then again be able to achieve their target yields in the less
risky government bond market as IG EUR corporate credits additionally
accrue a higher credit risk which is not currently being compensated for to a
sufficient extent.
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 3 of 23
Bank Lending Survey
indicates further growth in
borrowing by companies
The quarterly Bank Lending Survey published in January 2017 on lending in
the eurozone highlighted that lending growth has continued to be supported
by rising demand in all loan categories. At the same time, the terms for loans
to companies have stabilised on a broad basis. On balance, credit standards
were somewhat more stringent, which was mainly attributable to
developments in the Netherlands. While the net balance was 0% in the
previous quarter, it now is 3%. This is the first tightening of credit guidelines
since the fourth quarter of 2013. However, the trend already emerged in the
previous survey. No immediate impact of the more stringent credit standards
at companies is currently evident on the bond market. However in the future,
it cannot be ruled out that investors demand a higher compensation premium
for the credit risks they are exposed to. In view of rising inflation expectations
in the eurozone and increasing yields on government bonds, companies
continued to be busy raising funds in the capital market. To date, this has
been met with sufficient demand from investors. We expect placement
potential to diminish in the second half of the year, with the resultant
increases in spreads.
Market environment Primary market
Record year followed by
record month
The corporate market is chasing one record after another. Following the
previous year’s record issuance volume of EUR 387bn, the trend continued
seamlessly in January 2017. In the first month of the current financial year, a
total amount of EUR 34bn was issued.
Start of the year in the corporate bond market Monthly overview of maturities in 2017
0
5
10
15
20
25
30
35
Amount Issued
0
5
10
15
20
25
30
35
Amount Matured Amount Issued
Source: Bloomberg, NORD/LB Fixed Income Research Source: Bloomberg, NORD/LB Fixed Income Research
New issues The sectors Communications (around EUR 6.59bn) as well as Consumer,
cyclical (EUR 6.45bn) and Financial (EUR 6.40bn) accounted for more than
half of the issuance volume in January. The company with the highest
funding “requirement” was Deutsche Telekom, which raised a total of EUR
3.5bn divided across three tranches. At the same time, automotive
companies were very active. BMW placed two bond issues, raising EUR
2bn, while Daimler issued a EUR-denominated floating rate note totalling
EUR 0.2bn (and a further 0.45bn worth in GBP). Honda (EUR 0.5bn),
Volkswagen subsidiary Scania (EUR 0.5bn) and Jaguar (EUR 0.65bn) also
successfully raised money directly at the start of the year.
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 4 of 23
Fresenius bonds are very
popular
After a successful bond issue worth EUR 2.6bn (bid-to-cover ratio of more
than 4.5), Fresenius soon after successfully placed an equity neutral
convertible bond issue worth EUR 500m (maturity: 2024). The bonds carry
no interest and were issued at an issue price of 101.00%. The initial
conversion price was set with a 45% premium above the reference price of
the company’s shares. Following the successful borrower’s note issued in
12/2016 and the bond issue, the healthcare provider from Bad Homburg in
Germany has already financed its acquisition of hospital group Quirónsalud
in full.
An overview of selected new issues
ISIN Ticker CPN Maturity AMT
ISSUED ISSUE_DT
Rating Issue
spread (ms)
Issue spread
(benchmark)
Current spread (ASW)
Moody’s
S&P Fitch
XS1548436473 BMW 0.75 12.07.2024 750 12.01.2017 A1 A+ A+e 42 93 32
DE000A19BM44 DAIGR 0.326 12.01.2019 200 12.01.2017 A3 A A-e 28
XS1548436556 BMW 0.125 12.01.2021 1250 12.01.2017 A1 A+ A+e 20 84 13
XS1548387593 BASGR 1.45 13.12.2032 300 13.01.2017 A1 A+u 36
XS1550149204 ENELIM 1 16.09.2024 1250 16.01.2017 Baa2 BBB BBB+ 118 75
XS1550951211 TELEFO 1.528 17.01.2025 1250 17.01.2017 Baa3 BBB BBB 105 157 100
XS1550951138 TELEFO 2.318 17.10.2028 500 17.01.2017 Baa3 BBB BBB 145 204 136
XS1551068676 ENIIM 1.5 17.01.2027 750 17.01.2017 Baa1 BBB+ 88 130 84
XS1549372420 HEIGR 0.5 18.01.2021 750 18.01.2017 Baa3 BBB- BBB- 55 115 39
FR0013231099 DGFP 1.25 18.01.2027 1000 18.01.2017 A3 A- 106 48
XS1518704900 LINGR 0.25 18.01.2022 1000 18.01.2017 A2 A+ 22 75 8
XS1551678409 TITIM 2.5 19.07.2023 1000 19.01.2017 Ba1 BB+ BBB- 237 290 218
DE000A19B8D4 ANNGR 0.75 25.01.2022 500 25.01.2017 BBB+ 122 54
DE000A19B8E2 ANNGR 1.75 25.01.2027 500 25.01.2017 BBB+ 156 95
As at: 6 February 2016, 18:00. Source: Bloomberg, NORD/LB Fixed Income Research
Mainly issuers from the
eurozone
In the previous years, an increase in bond issues by companies from abroad
(share of U.S. issuers of more than 20% in 2015 and 2016) was observed.
However, U.S. corporates accounted for only around 5% in January this
year. Reasons for this may include the hope of U.S. companies that tax
changes in the domestic market will be linked to the implementation of new
U.S. President Donald Trump’s tax reforms.
Maturities with the highest volume in February 2017
Company Ticker CPN Maturity AMT
ISSUED
Siemens AG SIEGR 5.125 20.02.2017 2000
Orange SA ORAFP 4.75 21.02.2017 1900
Telefonica SA TELEFO 4.75 07.02.2017 1420
thyssenkrupp AG TKAGR 4.375 28.02.2017 1250
Vinci SA DGFP 4.125 20.02.2017 1000
Repsol SA REPSM 4.75 16.02.2017 886
As at 6 February 2016, 18:00. Source: Bloomberg, NORD/LB Fixed Income Research
Outlook for February 2017 For February this year, we expect a lower issuance volume in comparison to
January 2017, which is partly connected with the lower volume of bonds
maturing. In addition, we know that Telefónica already successfully
refinanced its bonds maturing in February in the primary market (EUR
1.75bn).
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 5 of 23
Focus topic Impact of Trump’s election on corporates
Planned tax reforms to favour
U.S. companies
The tax system in the United States is based on income which is generated
in the USA (production-based). In the past, many large corporates
(particularly technology companies) benefited from this by transferring
intangible assets to low tax countries in order to avoid this taxation. The tax
reform, which the new administration aims to achieve, centres on
implementing a destination-based cash flow tax with border adjustment in
future. This would mean that cash flow is taxed depending on where sales
take place and as a result, export revenue would be exempt from taxation in
the USA. On the other hand, it would no longer be possible to offset imports
from suppliers for tax purposes, although sales of products within the USA
would be liable for tax.
Global trend in company taxation
15,00
20,00
25,00
30,00
35,00
40,00
45,00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
tax rate
in %
Germany Italy Japan Global average
OECD average EU average Canada United Kingdom
United States France
As at 6 February 2017 – 11:00 (CET). Source: KPMG, NORD/LB Fixed Income Research
U.S. tax rates in a global
comparison
The United States tax rate for corporates of 40% is one of the highest
worldwide. The EU average currently is around 22% whereas the tax rate in
the USA has remained unchanged for 10 years (40%). The global average of
approximately 24% is at the lower end of the range. Only the United
Kingdom applies even lower taxation for corporates at 20%.
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 6 of 23
Impact on corporate bonds As part of the corporate tax reform, the lower future taxation for companies
would release new funds for investments. In combination with the
repatriation of cash reserves currently parked abroad, it would result in a
sharp downward trend in debt capital required, as the cash reserves
temporarily deposited are considerable. The proposed non-deduction of
interest costs from the tax basis additionally reduces the incentive to use
borrowed funds for financing purposes. It is worth considering how corporate
bonds would fare in such an environment. Specifically in view of the
decrease in new bond issues that is to be anticipated, U.S. corporates
should remain attractive in relative terms based on the achievable yield pick-
up in an environment where yields on US government bonds are rising. The
reason for this is that they provide a yield advantage compared with their
risk-free counterpart, US Treasuries, when supply diminishes.
Which companies and
sectors benefit from Trump’s
policy?
Despite Twitter politics and the almost daily new “alternative facts” from the
White House, it can be assumed that the measures announced
(deregulation, infrastructure programme and corporate tax reform) will have
a positive impact on the following U.S. sectors and U.S. companies:
1. Sectors with a high level of regulation at present (financial
industry, oil and gas industry as well as the pharmaceutical
industry)
2. Sectors with a high share of exports (oil and gas industry,
logistics and aviation)
3. Sectors that profit from an infrastructure programme
(construction and logistics)
4. Corporates that hold high cash reserves abroad (10% – tax
holiday as part of repatriation of cash reserves)
5. Corporates with high value added in the USA
Which companies and
sectors are negatively
impacted by Trump’s policy?
Companies which depend heavily on imports would suffer as a result of
Trump’s tax plans, because imported products would not be tax deductible in
the future. In addition, any potential sales revenue would be taxable in full in
the USA. This would affect corporates with international activities in their
supply chain and major retail chains. Theoretically, the calculation is as
follows: the disadvantage arising is compensated in a national economy by a
FX revaluation because the export advantages would result in an increase in
exports. The foreign trade deficit would decrease and importing corporates
would be able to use the hard currency of their home market to buy offshore.
A “pleasant secondary effect” from the point of view of the U.S.
administration, is, for example, the fact that German corporates which
depend heavily on exports to the USA (mechanical engineering, chemicals,
pharma and automotive as well as their suppliers) would be affected by this,
since the new tax system would trigger clear competitive disadvantages.
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 7 of 23
ECB tracker Monthly analysis of the CSPP
CSPP data published As usual, the ECB yesterday (06 February) published information about the
bonds purchased by the six national central banks under the CSPP.
Ultimately, 14 new ISINs were determined for the previous week, meaning
that the number of bonds purchased rose to 828. In the previous week, the
bonds purchased included bonds from issuers Vonovia, Engie and Snam,
which are already firmly anchored in the CSPP. In total, the volume
purchased came to around EUR 61.0bn and was spread across 211 different
issuers. Assuming that national central banks maintain their current
purchase tempo, the extrapolated total volume will amount to EUR 146.1bn
by December 2017. Last week, for the first time, a bond issue in the CSPP
matured. The Telekom Austria bonds purchased by the Finnish central bank
(Suomen Pankki) matured on 27 January 2017. The amount of the bonds
issued which the central bank had bought was less than EUR 50m, which is
lower than the statistical (CSPP total volume/number of ISINs purchased)
average figure of EUR 73.6m.
Central banks very busy A high level of primary market activities and a backlog of demand after the
central banks had significantly reduced their purchasing activities in the
context of the “Christmas break” ensured energetic buying by the NCBs in
January this year. In each of the first few weeks of the year, a volume that
exceeded the previous weekly average figures was purchased. This resulted
in an increase of the weekly average to a current approximately EUR 1.7bn.
With a volume purchased of almost EUR 2.9bn, the third calendar week was
the week with the highest purchases since the start of the CSPP in June
2016.
Number of purchases in the
primary market slightly up
As forecast, the number of bonds directly purchased in the primary market
by central banks during January 2017 also increased. Approximately 14.1%
(+0.5%) of the volume bought by NCBs was immediately purchased upon
issue.
New ISINs included on the ECB purchase list for the CSPP
ISIN Issuer Remaining
term Outstanding volume [bn]
Yield remaining term
FR0011344076 AIR LIQUIDE FINANCE 4.7 0.50 0.175
FR0013230943 VALEO SA 5.9 0.50 0.692
XS0827999318 ORANGE SA 6.1 0.50 0.574
XS1134729794 NOVARTIS FINANCE SA 9.8 0.60 0.787
XS1550988569 NN GROUP NV 5.9 0.50 0.889
XS0458685913 HEIDELBERGCEMENT FIN LUX 2.7 0.50 0.089
XS1533928971 WPC EUROBOND BV 7.4 0.50 2.150
XS1549372420 HEIDELBERGCEMENT FIN LUX 3.9 0.75 0.366
XS1548436556 BMW FINANCE NV 3.9 1.25 0.104
DE000A1TNJ97 DAIMLER AG 4.4 0.75 0.229
XS1548436473 BMW FINANCE NV 7.4 0.75 0.762
XS1396285279 EUROGRID GMBH 11.2 0.75 1.487
XS1550951211 TELEFONICA EMISIONES SAU 7.9 1.25 1.528
XS1551726810 CELLNEX TELECOM SA 8.2 0.34 2.955
XS1550951138 TELEFONICA EMISIONES SAU 11.7 0.50 2.311
XS1551446880 GAS NATURAL FENOSA FINAN 9.9 1.00 1.600
XS1529684695 GAS NETWORKS IRELAND 9.8 0.50 1.333
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 8 of 23
FR0013231099 AUTOROUTES DU SUD DE LA 9.9 1.00 1.238
XS0994991411 TOTAL CAPITAL INTL SA 8.8 0.65 0.856
XS1551678409 TELECOM ITALIA SPA 6.4 1.00 2.507
XS1551068676 ENI SPA 9.9 0.75 1.624
XS1017828911 BASF SE 2.0 0.75 -0.002
XS1518704900 LINDE FINANCE BV 4.9 1.00 0.183
XS1554456613 LEG IMMOBILIEN AG 7.0 0.50 1.199
XS1555704078 TELEFONICA EMISIONES SAU 2.0 0.15 0.111
XS1554373164 FRESENIUS FIN IRELAND PL 5.0 0.70 0.744
XS1554373248 FRESENIUS FIN IRELAND PL 7.0 0.70 1.340
XS1554373677 FRESENIUS FIN IRELAND PL 10.0 0.70 2.040
XS1554373834 FRESENIUS FIN IRELAND PL 15.0 0.50 2.829
FR0011565555 RTE RESEAU DE TRANSPORT 6.6 0.50 0.609
FR0013073277 LEGRAND SA 10.9 0.30 1.137
FR0013142536 CARMILA 7.6 0.60 1.719
XS1550149204 ENEL FINANCE INTL NV 7.6 1.25 1.256
XS1551917245 ITALGAS SPA 5.0 0.75 0.607
XS1508588875 SNAM SPA 3.7 0.50 0.287
XS1558491855 ATLANTIA SPA 8.0 0.75 1.611
XS1002933072 HEIDELBERGCEMENT FIN LUX 4.7 0.50 0.574
XS1119021357 EXOR NV 7.7 0.65 1.812
XS1329671132 EXOR NV 5.8 0.75 1.229
XS1558083652 EDP FINANCE BV 6.6 0.60 1.923
DE000A0Z2A12 EWE AG 4.4 0.46 0.301
DE000A19B8D4 VONOVIA FINANCE BV 5.0 0.50 0.636
DE000A19B8E2 VONOVIA FINANCE BV 10.0 0.50 1.710
XS1451452954 REPSOL INTL FINANCE 2.4 0.10 0.095
FR0010678185 ENGIE SA 2.0 0.83 -0.179
FR0011509488 AEROPORTS DE PARIS 11.3 0.60 1.193
FR0012967461 CARMILA 6.6 0.60 1.424
XS1218363270 UNIBAIL-RODAMCO SE 13.2 0.50 1.625
XS1555402145 SNAM SPA 8.0 0.50 1.332
XS1205716720 AUTOSTRADA BRESCIA V 3.1 0.60 0.796
Source: ECB, NORD/LB Fixed Income Research – bonds from the issuers listed in italics were purchased for the first time in the previous month
CSPP diagrams One diagram – four statements [EURm]
Source: ECB, Bloomberg, NORD/LB Fixed Income Research; lhs` means the outer left Y-axis and rhs´ the outer right Y-axis
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 9 of 23
Yield overview CSPP portfolio
-0,50
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
0 2 4 6 8 10 12 14 16 18 20
Yie
ld i
n %
Years to maturity
Basic Materials Communications Consumer, Cyclical Consumer, Non-cyclical Diversified Energy Financial Government Industrial Technology Utilities
Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Yield overview CSPP portfolio (up to 10 years maturity)
-0,50
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
0 1 2 3 4 5 6 7 8 9 10
Yie
ld i
n %
Years to maturity
Basic Materials Communications Consumer, Cyclical Consumer, Non-cyclical Diversified Energy Financial Government Industrial Technology Utilities
Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Classification by outstanding volume Rating distribution according to the Bloomberg
Composite
0
50
100
150
200
250
300
350
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<250mn 250 to <500mn 500 to < 1bn >= 1bn
Amount Outstanding in EUR Distribution number weighted (rhs)
4% 4%
9%
6%
19%
24%
18%
12%
4%
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
Source: ECB, Bloomberg, NORD/LB Fixed Income Research Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 10 of 23
Distribution by central bank Distribution by central bank and sector
0
50
100
150
200
250
# p
urc
ha
sed
Bo
nd
s
0
50
100
150
200
250
# p
urc
ha
sed
Bo
nd
s
Diversified
Technology
Government
Basic Materials
Industrial
Energy
Financial
Consumer, Cyclical
Communications
Consumer, Non-cyclical
Source: ECB, Bloomberg, NORD/LB Fixed Income Research Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Top 15 purchased companies Distribution by sector and central bank
0
2
4
6
8
10
12
14
16
18
20
# p
urc
ha
sed
Bo
nd
s
0
10
20
30
40
50
60
# p
urc
ha
sed
Bo
nd
s
DeutscheBundesbank
Banque deFrance
NB van Belgie
Banca d'Italia
Banco deEspana
SuomenPankki
Source: ECB, Bloomberg, NORD/LB Fixed Income Research Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Distribution of ISINs purchased within the framework of the CSPP
Country Number of
bonds %
distribution Outstanding
volume %
distribution
Average remaining
term in years
Average remaining term of all
bonds
Difference in years
Germany 201 24.2% 146.3 25.1% 5.0 5.8 -0.8
France 216 26.1% 161.1 27.6% 6.3 5.8 0.5
Netherlands 71 8.6% 46.1 7.9% 6.5 5.8 0.8
Italy 91 11.0% 69.8 12.0% 5.6 5.8 -0.2
Spain 89 10.7% 63.3 10.8% 5.7 5.8 -0.1
Belgium 33 4.0% 26.8 4.6% 7.9 5.8 2.1
Austria 22 2.7% 10.4 1.8% 4.8 5.8 -1.0
Finland 15 1.8% 6.6 1.1% 4.9 5.8 -0.9
Other 91 11.0% 53.3 9.1% 5.7 5.8 -0.1
Total/
average 828 100.0% 583.7 100.0% 5.8 5.8 5.8
Source: ECB, Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 11 of 23
CDS performance Recovery at year-end
Phase of tightening
continues after Trump break
In the first week of the new year, spread levels in the iTraxx Europe
tightened as far as 67bp, before widening to up to 74bp following the high
volume of new issues in the course of January. Similar to the iTraxx Europe,
the iTraxx Crossover widened from 280bp on 3rd January to up to 302bp by
1st February. In view of the lower issuing volume anticipated for February,
we expect a minor sideways tightening trend. Cash bonds are less sensitive
to current developments than their synthetic counterparts. Further executive
orders signed by new U.S. President Trump may also impact on the
“performance”. In contrast, the current reporting season is not expected to
cause more than partial effects at most.
Movement in spreads: iTraxx Europe vs iTraxx Xover
0
50
100
150
200
250
300
350
400
450
500
0
50
100
150
200
250
bp
bp
iTraxx Europe (lhs) iTraxx Xover (rhs) iBoxx € IG Corporates (lhs) iBoxx € High Yield (rhs)
ECB-Session Brexit- Referendum US-Election 10.03.2016 23.06.2016 08.11.2016
As at 6 February 2017 – 11:00 (CET). Source: Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 12 of 23
Rating changes For the period 1 January 2017 – 31 January 2017
Date Country
Company Agency Type of rating Old rating New rating
31.01.17 US American International Group Inc S&P LT Local Issuer Credit A- BBB+
31.01.17 US American International Group Inc S&P LT Foreign Issuer Credit A- BBB+
31.01.17 US American International Group Inc S&P Outlook STABLE
31.01.17 CW Teva Pharmaceutical Finance IV BV Moody’s Outlook NEG
31.01.17 NL Teva Pharmaceutical Finance Netherlands II BV Moody’s Outlook NEG
30.01.17 US General Motors Financial Co Inc Moody’s Outlook STABLE
30.01.17 US General Motors Financial Co Inc Moody’s LT Corp Family Rating Ba1 Baa3
30.01.17 US General Motors Financial Co Inc Moody’s Senior Unsecured Debt Ba1 Baa3
30.01.17 US General Motors Financial Co Inc Moody’s Long Term Rating Baa3
30.01.17 NL General Motors Financial International BV Moody’s Outlook STABLE
30.01.17 NL General Motors Financial International BV Moody’s Senior Unsecured Debt (P)Ba1 (P)Baa3
30.01.17 NL General Motors Financial International BV Moody’s Long Term Rating Baa3
27.01.17 GB British Telecommunications PLC S&P Outlook NEG
27.01.17 GB EE Finance PLC S&P Outlook NEG
26.01.17 US American International Group Inc AMBest Long Term Issuer Credit bbb bbb *-
26.01.17 GB British Telecommunications PLC Moody’s Outlook NEG
26.01.17 GB EE Finance PLC Moody’s Outlook NEG
25.01.17 BM Bacardi Ltd S&P Outlook STABLE
25.01.17 NL BMW Finance NV Moody’s Long Term Rating A1
25.01.17 NL BMW Finance NV Moody’s Senior Unsecured Debt A2 A1
25.01.17 NL BMW Finance NV Moody’s Outlook STABLE
25.01.17 US BMW US Capital LLC Moody’s Senior Unsecured Debt A2 A1
25.01.17 US BMW US Capital LLC Moody’s Long Term Rating A1
25.01.17 US BMW US Capital LLC Moody’s Outlook STABLE
24.01.17 US American International Group Inc Fitch LT Issuer Default Rating A- A- *-
24.01.17 US American International Group Inc Fitch Subordinated Debt NR NR
24.01.17 US American International Group Inc Fitch Senior Unsecured Debt BBB+ BBB+ *-
24.01.17 US American International Group Inc Fitch JR Subordinated Debt BBB- BBB- *-
24.01.17 DE BASF SE Creditref Outlook STABLE
24.01.17 DE BASF SE Creditref LT Issuer Rating A+u
23.01.17 US American Honda Finance Corp S&P Outlook NEG
23.01.17 US Prologis LP Fitch LT Issuer Default Rating BBB BBB+
23.01.17 US Prologis LP Fitch Outlook STABLE
23.01.17 US Prologis LP Fitch Senior Unsecured Debt BBB BBB+
23.01.17 GB Rolls-Royce PLC S&P Outlook STABLE
23.01.17 GB Rolls-Royce PLC S&P LT Foreign Issuer Credit A- BBB+
23.01.17 GB Rolls-Royce PLC S&P LT Local Issuer Credit A- BBB+
20.01.17 GB Pearson Funding Five PLC Moody’s Outlook NEG
19.01.17 BE Eandis System Operator SCRL Creditref. Outlook STABLE
19.01.17 BE Eandis System Operator SCRL Creditref LT Issuer Rating A+
18.01.17 IT Luxottica Group SpA S&P ST Local Issuer Credit A-2 A-2 *+
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 13 of 23
18.01.17 IT Luxottica Group SpA S&P LT Foreign Issuer Credit A- A- *+
18.01.17 IT Luxottica Group SpA S&P LT Local Issuer Credit A- A- *+
18.01.17 IT Luxottica Group SpA S&P ST Foreign Issuer Credit A-2 A-2 *+
18.01.17 CA Magna International Inc Moody’s Long Term Rating A3
18.01.17 CA Magna International Inc Moody’s Outlook STABLE
18.01.17 CA Magna International Inc Moody’s Issuer Rating Baa1 A3
18.01.17 CA Magna International Inc Moody’s Senior Unsecured Debt Baa1 A3
17.01.17 GB BAT International Finance PLC Moody’s Issuer Rating A3 *- Baa2
17.01.17 GB BAT International Finance PLC Moody’s Short Term P-2 *- P-2
17.01.17 GB BAT International Finance PLC Moody’s Senior Unsecured Debt A3 *- Baa2
17.01.17 GB BAT International Finance PLC Moody’s Outlook STABLE
17.01.17 GB BAT International Finance PLC Moody’s Long Term Rating Baa2
16.01.17 FR Essilor International SA Moody’s Outlook POS
16.01.17 DE LEG Immobilien AG Moody’s Senior Unsecured Debt Baa1
13.01.17 US Flowserve Corp S&P Outlook NEG
12.01.17 DE HeidelbergCement AG EJR FC Commercial Paper A2 A1
12.01.17 DE HeidelbergCement AG EJR LC Commercial Paper A2 A1
12.01.17 NL WPC Eurobond BV Moody’s Long Term Rating Baa2
11.01.17 US Mohawk Industries Inc Moody’s Outlook STABLE
11.01.17 US Mohawk Industries Inc Moody’s Long Term Rating Baa1
11.01.17 US Mohawk Industries Inc Moody’s Senior Unsecured Debt Baa2 Baa1
10.01.17 US General Motors Financial Co Inc S&P LT Foreign Issuer Credit BBB- BBB
10.01.17 US General Motors Financial Co Inc S&P Outlook STABLE
10.01.17 US General Motors Financial Co Inc S&P LT Local Issuer Credit BBB- BBB
10.01.17 US Southern Power Co S&P Outlook STABLE
09.01.17 FR Engie SA Creditref LT Issuer Rating A-u
09.01.17 FR Engie SA Creditref Outlook STABLE
06.01.17 LU Novartis Finance SA Moody’s Short Term P-1 WR
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 14 of 23
New issues In the period 1 January 2017 – 31 January 2017
ISIN TICKER CPN MATURITY AMT_ISSUED ISSUE_DT Rating Issue spread Issue spread Current spread
Moody’s S&P Fitch (ms) (to benchmark) (ASW)
FR0013230943 FRFP 0.625 11.01.2023 500 11.01.2017 Baa2 BBB 48 106 44
FR0013230737 RENAUL 0.75 12.01.2022 750 12.01.2017 Baa1 BBB 70 126 67
XS1548436473 BMW 0.75 12.07.2024 750 12.01.2017 A1 A+ A+e 42 93 32
XS1548776498 F 0.869 13.09.2021 750 12.01.2017 Baa2 BBB BBB 136 71
DE000A19BM44 DAIGR 0.326 12.01.2019 200 12.01.2017 A3 A A-e 28
XS1548436556 BMW 0.125 12.01.2021 1250 12.01.2017 A1 A+ A+e 20 84 13
XS1548387593 BASGR 1.45 13.12.2032 300 13.01.2017 A1 A+u 36
XS1550149204 ENELIM 1 16.09.2024 1250 16.01.2017 Baa2 BBB BBB+ 118 75
XS1551347393 TTMTIN 2.2 15.01.2024 650 17.01.2017 Ba1 BB+ 188 236 169
XS1551933010 PRYIM 0 17.01.2022 500 17.01.2017 98
XS1551347807 TTMTIN 2.2 15.01.2024 650 17.01.2017 Ba1 BB+ 188 235 171
XS1550951211 TELEFO 1.528 17.01.2025 1250 17.01.2017 Baa3 BBB BBB 105 157 100
FR0013231768 NK 1.5 15.01.2027 600 17.01.2017 Baa2 BBB 92 134 89
XS1550134602 HNDA 0.75 17.01.2024 500 17.01.2017 A1 A+ 42 89 35
XS1550951138 TELEFO 2.318 17.10.2028 500 17.01.2017 Baa3 BBB BBB 145 204 136
XS1551068676 ENIIM 1.5 17.01.2027 750 17.01.2017 Baa1 BBB+ 88 130 84
XS1549372420 HEIGR 0.5 18.01.2021 750 18.01.2017 Baa3 BBB- BBB- 55 115 39
FR0013231099 DGFP 1.25 18.01.2027 1000 18.01.2017 A3 A- 106 48
XS1551726810 CLNXSM 2.875 18.04.2025 335 18.01.2017 BB+ BBB- 255 303 233
XS1518704900 LINGR 0.25 18.01.2022 1000 18.01.2017 A2 A+ 22 75 8
XS1551678409 TITIM 2.5 19.07.2023 1000 19.01.2017 Ba1 BB+ BBB- 237 290 218
XS1551917245 IGIM 0.5 19.01.2022 750 19.01.2017 Baa1 BBB+ 60 113 47
XS1551446880 GASSM 1.375 19.01.2027 1000 19.01.2017 Baa2 BBB BBB+ 127 81
XS1551917591 IGIM 1.625 19.01.2027 750 19.01.2017 Baa1 BBB+ 105 148 95
XS1554456613 LEGGR 1.25 23.01.2024 500 23.01.2017 Baa1 102 151 84
XS1554462421 SCANIA 0.022 24.10.2018 500 24.01.2017 BBB+ 24
XS1555147799 SKGID 2.375 01.02.2024 500 24.01.2017 Ba1 BB+ BB+ 257 184
XS1555147369 SKGID 2.375 01.02.2024 500 24.01.2017 Ba1 BB+ BB+ 257 184
XS1551932046 IIAAV 2 24.01.2024 300 24.01.2017 387
FR0013233426 BOLFP 2 25.01.2022 500 25.01.2017 195 249 182
FR0013233384 ACFP 1.25 25.01.2024 600 25.01.2017 BBB- BBB- 103 153 94
DE000A19B8D4 ANNGR 0.75 25.01.2022 500 25.01.2017 BBB+ 122 54
DE000A19B8E2 ANNGR 1.75 25.01.2027 500 25.01.2017 BBB+ #N/A N/A 156 95
AT0000A1REV0 ERSTPS 3.04 25.01.2022 200 25.01.2017
XS1555402145 SRGIM 1.25 25.01.2025 500 25.01.2017 Baa1 BBB BBB+ 85 138 78
XS1558013360 IMBLN 1.375 27.01.2025 500 27.01.2017 Baa3 BBB 144 82
XS1558013014 IMBLN 0.5 27.07.2021 500 27.01.2017 Baa3 BBB 113 41
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 15 of 23
XS1554373248 FREGR 1.5 30.01.2024 700 30.01.2017 Baa3 BB+ BBB-e 120 169 101
XS1557095616 DT 1.375 30.01.2027 1250 30.01.2017 Baa1 BBB+ BBB+e 117 61
XS1557096267 DT 0.875 30.01.2024 1250 30.01.2017 Baa1 BBB+ BBB+e 102 45
XS1557095459 DT 0.375 30.10.2021 1000 30.01.2017 Baa1 BBB+ BBB+e 87 19
XS1554373677 FREGR 2.125 01.02.2027 700 30.01.2017 Baa3 BB+ BBB-e 152 195 135
XS1554373164 FREGR 0.875 31.01.2022 700 30.01.2017 Baa3 BB+ BBB-e 85 140 69
XS1554373834 FREGR 3 30.01.2032 500 30.01.2017 Baa3 BB+ BBB-e 254 177
XS1558083652 EDPPL 1.875 29.09.2023 600 30.01.2017 Baa3 BB+ BBB- 158 211 149
DE000A2DAHU1 FREGR 0 31.01.2024 500 31.01.2017 Baa3 BB+ 31
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 16 of 23
Annex Charts & diagrams
Comparison of historical ASW spreads (10Y)
Min./max. comparison of current spread levels (10Y)
0
50
100
150
200
250
AS
W in
bp
Basic Materials CommunicationsConsumer, Cyclical Consumer, Non-cyclicalDiversified EnergyFinancial IndustrialTechnology Utilities
0,00
50,00
100,00
150,00
200,00
250,00
ac
t S
pre
ad
vs
Min
/Ma
x t
-24
M
MIN(24M) MAX (24M) ACT
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
Comparison of historical ASW spreads (7Y)
Min./max. comparison of current spread levels (7Y)
0
50
100
150
200
250
AS
W in
bp
Basic Materials CommunicationsConsumer, Cyclical Consumer, Non-cyclicalDiversified EnergyFinancial IndustrialTechnology Utilities
0,00
50,00
100,00
150,00
200,00
250,00
ac
t S
pre
ad
vs
Min
/Ma
x t
-24
M
MIN(24M) MAX (24M) ACT
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
Comparison of historical ASW spreads (5Y)
Min./max. comparison of current spread levels (5Y)
0
50
100
150
200
250
300
350
AS
W in
bp
Basic Materials CommunicationsConsumer, Cyclical Consumer, Non-cyclicalDiversified EnergyFinancial IndustrialTechnology Utilities
0,00
50,00
100,00
150,00
200,00
250,00
300,00
350,00
ac
t S
pre
ad
vs
Min
/Ma
x t
-24
M
MIN(24M) MAX (24M) ACT
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 17 of 23
Annex Charts & diagrams
iBoxx € Corporates – comparison of issues iBoxx € Corporates – classification
0
50
100
150
200
250
300
350
1Y-3Y 3Y-5Y 5Y-7Y 7Y-10Y >10Y
2015
2016
2017
Financials
Basic Materials
Consumer Goods
Consumer Services
Health Care
Industrials
Oil & Gas
Technology
Telecommunications
Utilities
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
iBoxx € Corporates – distribution country of risk iBoxx € Corporates – maturities per month
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
DE GB NL ES US FR CH IT SE Other
0
5
10
15
20
25
30
35
1 2 3 4 5 6 7 8 9 10 11 12
2017
2018
2019
2020
2021
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
iBoxx € Corporate – rating distribution iBoxx € Corporate – volume weighting (sector)
0,7% 0,3% 1,1%
7,5%
12,0%
13,4%
18,9%
20,0%
15,9%
9,1%
1,2%
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
0
100
200
300
400
500
600
700
Source: Markit, Bloomberg, NORD/LB Fixed Income Research Source: Markit, Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 18 of 23
iTraxx Europe – best performer (Δ 1M) iTraxx Europe – worst performer (Δ 1M)
-41
-24
-20
-12
-12
-12
-12
-11
-9
-8
-50 -40 -30 -20 -10 0
Safeway Ltd
Standard Chartered Bank
Banco Santander SA
Royal Bank of Scotland PLC/The
Danske Bank A/S
Volkswagen AG
Glencore International AG
Aegon NV
Telefonica SA
Mediobanca SpA
5
6
6
7
7
8
10
12
14
36
0 5 10 15 20 25 30 35 40
Koninklijke Ahold Delhaize NV
Veolia Environnement SA
Electricite de France SA
LafargeHolcim Ltd
Atlantia SpA
Engie SA
British Telecommunications PLC
Orange SA
Next PLC
Pearson PLC
Source: Bloomberg, NORD/LB Fixed Income Research Source: Bloomberg, NORD/LB Fixed Income Research
iTraxx Xover – best performer (Δ 1M) iTraxx Xover – worst performer (Δ 1M)
-223
-144
-129
-122
-75
-51
-42
-39
-38
-30
-250 -200 -150 -100 -50 0
Financiere Quick SAS (Sub)
CMA CGM SA
Galapagos Holding SA
Hema Bondco I BV
Care UK Health & Social Care PLC (Sub)
Novafives SAS
Stena AB
Jaguar Land Rover Automotive PLC
Anglo American PLC
Casino Guichard Perrachon SA
26
30
35
35
41
74
98
135
135
256
0 50 100 150 200 250 300
Ladbrokes Coral Group PLC
Hellenic Telecommunications…
Garfunkelux Holdco 2 SA
Unilabs Subholding AB
Pizzaexpress Financing 1 PLC
Loxam SAS (Sub)
Premier Foods Finance PLC
Selecta Group BV
Astaldi SpA
New Look Senior Issuer PLC
Source: Bloomberg, NORD/LB Fixed Income Research Source: Bloomberg, NORD/LB Fixed Income Research
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 19 of 23
Appendix Contacts
Fixed Income Research
Michael Schulz Head +49 511 361-5309 [email protected]
Kai Ebeling Covered Bonds +49 511 361-9713 [email protected]
Mario Gruppe Public Issuers +49 511 361-9787 [email protected]
Michaela Hessmert Banks +49 511 361-6915 [email protected]
Melanie Kiene Banks +49 511 361-4108 [email protected]
Jörg Kuypers Corporates / Retail Products +49 511 361-9552 [email protected]
Matthias Melms Covered Bonds +49 511 361-5427 [email protected]
Sascha Remus Corporates / Retail Products +49 511 361-2722 [email protected]
Norman Rudschuck Public Issuers +49 511 361-6627 [email protected]
Thomas Scholz Corporates / Retail Products +49 511 361-4710 [email protected]
Martin Strohmeier Corporates / Retail Products +49 511 361-4712 [email protected]
Kai Witt Corporates / Retail Products +49 511 361-4639 [email protected]
Markets Sales
Carsten Demmler Head +49 511 361-5587 [email protected]
Institutional Sales (+49 511 9818-9440)
Thorsten Bock [email protected] Gabriele Schneider [email protected]
Uwe Kollster [email protected] Dirk Scholden [email protected]
Rainer Nabel [email protected] Uwe Tacke [email protected]
Daniel Novotny-Farkas [email protected]
Sales Savings Banks / Regional Banks (+49 511 9818-9400)
Christian Schneider (Head) [email protected] Martin Koch [email protected]
Thorsten Aberle [email protected] Stefan Krilcic [email protected]
Oliver Bickel [email protected] Bernd Lehmann [email protected]
Tobias Bohr [email protected] Jörn Meißner [email protected]
Kai-Ulrich Dörries [email protected] Lutz Schimanski [email protected]
Jan Dröge [email protected] Ralf Schirrling [email protected]
Sascha Goetz [email protected] Brian Zander [email protected]
Sales Asia (+65 64 203136)
Jefferson Ko [email protected] Muhammad Peter Shepherd
Fixed Income / Structured Products Sales Europe (+352 452211-515)
René Rindert (Head) [email protected] Toni Martikainen [email protected]
Morgan Kermel [email protected] Laurence Payet [email protected]
Patricia Lamas [email protected]
Corporate Sales
Shipping / Aircraft +49 511 9818-8150 Corporate Clients +49 511 9818-4003
Real Estate / Structured Finance
+49 511 9818-8150 FX/MM
+49 511 9818-4006
Corporate Finance – Origination Corporates
Tobias Müssig (Leitung) [email protected] Sandro Pittalis [email protected]
Roland Arndt [email protected] Stefan Sigrist [email protected]
Sebastian Dahlhaus [email protected] Sabine Stenschke [email protected]
Birgit Determann [email protected] Karsten Wernecke [email protected]
Christian Müller [email protected]
Financial Markets Trading
Corporates +49 511 9818-9690 Collat. Mgmt / Repos +49 511 9818-9200
Covereds / SSAs +49 511 9818-8040 Cust. Exec. & Trading +49 511 9818-9480
Financials +49 511 9818-9490 Frequent Issuers +49 511 9818-9640
Governments +49 511 9818-9660 Structured Products +49 511 9818-9670
Länder & Regions +49 511 9818-9550
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 20 of 23
Disclaimer
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Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 21 of 23
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Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 22 of 23
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distributed to any other kind of investor, in particular not to retail clients. This Investment Recommendation does not constitute or form
part of an offer to buy or sell any of the securities covered by the report nor can be understood as a request to buy or sell securities
where that practise may be deemed unlawful. This Investment Recommendation is based on information obtained from sources which
we believe to be reliable, but is not guaranteed as to accuracy or completeness. Unless otherwise stated, all views herein contained are
solely expression of our research and analysis and subject to change without notice.
Additional information for recipients in Sweden
This Investment Recommendation does not constitute or form part of, and should not be construed as a prospectus or offering
memorandum or an offer or invitation to acquire, sell, subscribe for or otherwise trade in shares, subscription rights or other securities
nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This Investment
Recommendation has not been approved by any regulatory authority. Any offer of securities will only be made pursuant to an applicable
prospectus exemption under EC Prospectus Directive, and no offer of securities is being directed to any person or investor in any
jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional
prospectuses, other offer documentation, registrations or other actions.
Additional information for recipients in Switzerland
This Investment Recommendation has not been approved by the Federal Banking Commission (merged into the Swiss Financial Market
Supervisory Authority “FINMA” on 1 January 2009).
NORD/LB will comply with the Directives of the Swiss Bankers Association on the Independence of Financial Research, as amended.
This Investment Recommendation does not constitute an issuing prospectus pursuant to article 652a or article 1156 of the Swiss Code
of Obligations. This Investment Recommendation is published solely for the purpose of information on the products mentioned in this
advertisement. The products do not qualify as units of a collective investment scheme pursuant to the Federal Act on Collective
Investment Schemes (CISA) and are therefore not subject to the supervision by the Swiss Financial Market Supervisory Authority
(FINMA).
Additional information for recipients in Canada
This Investment Recommendation has been prepared for informational purposes only in relation to the products contained in this
material and is not, under any circumstances to be construed as an offering memorandum or as an offering of any securities for sale
directly or indirectly in any province or territory of Canada.
No securities commission or similar regulatory authority in Canada has passed on the merits of these securities nor has it reviewed this
material and any representation to the contrary is an offence.
Relevant selling restrictions, if any, are contained in the prospectus or other documentation for the respective product.
Additional information for recipients in Estonia
It is advisable to examine all the terms and conditions of the services provided by NORD/LB. If necessary, Recipient of this Investment
Recommendation should consult with an expert.
Additional information for recipients in Finland
The financial products described in this Investment Recommendation may not be offered or sold, directly or indirectly, to any resident of
the Republic of Finland or in the Republic of Finland, except pursuant to applicable Finnish laws and regulations. Specifically, in the case
of shares, those shares may not be offered or sold, directly or indirectly, to the public in the Republic of Finland as defined in the Finnish
Securities Market Act (746/2012, as amended). The value of investments may go up or down. There is no guarantee to get back the
invested amount. Past performance is no guarantee of future results.
Additional information for recipients in Czech Republic
There is no guarantee to get back the invested amount. Past performance is no guarantee of future results. The value of investments
could go up and down
The information contained in this Investment Recommendation is provided on a non-reliance basis and its author does not accept any
responsibility for its content in terms of correctness, accuracy or otherwise.
Corporate Bond Strategy 10th February 2017 No. 6
NORD/LB Fixed Income Research page 23 of 23
Arrangements for the confidential treatment of sensitive customer and business data as well as for avoiding and handling conflicts of
interest
NORD/LB has separated its business divisions that may have access to sensitive customer and business data (confidential areas) from
its other divisions (e.g. NORD/LB Research) in terms of functions and locations and/or via relevant data processing arrangements.
The disclosure of confidential information that may have an impact on the prices of securities is monitored by NORD/LB’s Compliance
Unit which is independent of its trading, operational and settlement divisions. This independent unit controls the transactions undertaken
by NORD/LB and its employees on a daily basis to ensure that they are in line with market conditions. The Compliance Unit may impose
such trading bans and restrictions as may be necessary to ensure that information, which may affect the prices of securities, is not
misused and to prevent confidential information from being disclosed to divisions that are only allowed to use information available to the
general public. To avoid conflicts of interest in connection with the preparation of financial analyses, the analysts of NORD/LB are
obliged to inform the Compliance Unit of any studies being drawn up and must not invest in the financial instruments handled by them.
They are obliged to notify the Compliance Unit of all transactions (including external transactions) undertaken by them for their own
account or for the account or on behalf of third parties. Thus the Compliance Unit is in a position to identify all unauthorized transactions
undertaken by the analysts, such as insider trading and front and parallel running. When a Investment Recommendation involving
conflicts of interest to be disclosed within the NORD/LB Group is drawn up, any information on such conflicts of interest will only be
made available by the Compliance Unit upon completion of the Investment Recommendation. Any subsequent amendment of the
relevant Investment Recommendation may only be made upon consultation with the Compliance Unit and when it has been ensured that
the results of the study are not affected by the knowledge of such conflicts of interest. Further information on these matters is set forth in
our Investment Recommendation or Conflict of Interest Policy which is available from the Compliance Unit of NORD/LB upon request.
Time of going to press
07.02.2017 17:00h
Disclosure of NORD/LB’s potential conflicts of interest according to § 34b Abs. 1 WpHG and
Article 5 and 6 according to the Commission Delegated Regulation (EU) 2016/958 of 9 March 2016
None.
Additional disclosures
Sources and price indications
Depending on the issuer, we use information from financial data suppliers, our own estimates, company data and the public media for the
preparation of our Investment Recommendations. Unless otherwise stated in the report, prices indicated relate to the closing price on the
previous day. Fees and commissions apply to securities (buy, sell, hold) and these may reduce the yield on investments.
Analytical methods and updates
In the preparation of Investment Recommendations, we take company-specific methods used for fundamental securities’ analysis and
quantitative/statistical methods, as well as technical analytical methods as the basis for valuations and for the regular updates. All
assumptions and analytical derivations related to our recommendation may be extracted from the underlying research analysis. It should
be noted that the results of analyses provide a snapshot overview and that past developments do not constitute a reliable indicator for
future profits. The basis of the valuations is subject to unforeseen change at any time, potentially leading to different conclusions. The
present report is prepared monthly basis. Recipients are not automatically entitled to receive report update publications. Detailed
information with respect to our rating methodology is available at the webpage www.nordlb-pib.de/Bewertungsverfahren.
Recommendation system Share of recommendation (12 months)
Positive: Positive expectations for the issuer, a security type or a
specific security of an issuer.
Neutral: Neutral expectations for the issuer, a security type or a
specific security of an issuer.
Negative: Negative expectations for the issuer, a security type or a
specific security of an issuer.
Relative value (RV): Relative value recommendation in comparison to
a market segment, an issuer or a maturity.
Positive: 52%
Neutral: 44%
Negative: 5%
Recommendation history (12 months)
An overview of all our bond recommendations during the last 12 months is available at the webpage www.nordlb-pib.de/empfehlungsuebersicht_renten. Corresponding password: "renten/Liste3".
Issuer / security Date Recommendation Bond type Cause