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Source – LCAM 7 November 2017
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Source – LCAM
IG HY
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7 November 2017
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4Source – Morgan Stanley, MARKIT iBoxx, Bloomberg, LCAM Suisse 7 November 2017
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Source – LCAM
7 November 2017
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Source – Citigroup
7 November 2017
EUR
bill
ion
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Source – Credit Suisse
7 November 2017
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Source – Credit Suisse
7 November 2017
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Source – Credit Suisse, Dealogic, Bloomberg
7 November 2017
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Source – JPM
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7 November 2017
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Source – Credit Suisse
7 November 2017
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Source – LCAM, Bloomberg
Issuer Rating Parentrating
YTC Spread vs senior
Equity dividendyield
RWE€ 3.5% Apr 25C
BB+ BBB- 2.6% n/a Suspended
SSE£ 3 7/8% Sep 20C
BBB A- 2.3% 1.3% 6.6%
VW€ 2.7% Dec 22C
BBB- A- 1.9% 1.6% 1.2%
CK Hutchison$ 4.6% May 22C
BBB A- 3.5% 0.8% 2.8%
EDF$ 5 5/8% Jan 24C
BB+ A- 4.5% 1.3% 7.3%
7 November 2017
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Source – LCAM
7 November 2017
7 November 201714 Source – LCAM/BIS
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Core Equity T1
Common sharesRetained earnings
AT1 capital
T2 capital
Senior bonds
Deposits
- Pref shares (US)- High trigger CoCo’s
- Non-CoCo sub debt- Low trigger CoCo’s
Senior debt, unencumberedSenior debt, TLAC
Source – LCAM 7 November 2017
Tech
Valuation
Credit Framework
Regulation Framework
Macro Conditions
16 Source – LCAM 7 November 2017
17 7 November 2017
18 Source – FSB 7 November 2017
19 Source – Morgan Stanley 7 November 2017
20 7 November 2017
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%W
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CIT
IGR
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P IN
C
BA
NK
OF
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ERIC
A
BB
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JPM
OR
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N
BA
NK
OF
IREL
AN
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LDM
AN
SA
CH
S
MO
RG
AN
STA
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ND
AR
D C
HA
RT
ERED
CR
EDIT
AG
RIC
OLE
BA
NK
OF
NEW
YO
RK
HS
BC
RB
S
SKA
ND
INA
VIS
KA
EN
SKIL
DA
CR
EDIT
SU
ISSE
SAN
TA
ND
ER
NO
RD
EA
LLO
YD
S
SVE
NS
KA
HA
ND
ELSB
AN
KEN
BA
RC
LAY
S
UB
S
RA
BO
BA
NK
BN
P P
AR
IBA
S
SAN
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ND
ER
UK
DA
NS
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BA
NK
SOC
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E G
EN
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ALE
NA
TIO
NW
IDE
BLD
G S
OC
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DE
UTS
CH
E B
AN
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UN
ICR
EDIT
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CET1 / Total Assets
Source Bank Reports & Bloomberg 7 November 2017
22 Source: Barclays 7 November 2017
23 7 November 2017Source: Barclays
24 Source – Morgan Stanley 7 November 2017
25 7 November 2017Source – SocGen
26 7 November 2017
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n.b. the “Capital Cushion” is the latest reported CET1 less the CoCo bond’s trigger
7 November 2017Source - Barclays
28 7 November 2017Source - SocGen
29 7 November 2017Source - SocGen
7 November 201730 Source - Barclays
31 7 November 2017Source - Barclays
32 Source – LCAM + Bloomberg 7 November 2017
33 Source –Bloomberg 7 November 2017
34 Source – LCAM + Bloomberg 7 November 2017
BANK CALL DATE YTC RATING CET1 TRIGGER
BANCO SANTANDER SA 19/05/2019c 3.9c Ba1 10.8% 5.125%
NORDEA BANK AB 23/09/2019c 3.3c BBB+ 19.2% 5.125%
HSBC HOLDINGS PLC 17/01/2020c 3.6c BBB- 14.6% 7.000%
STANDARD CHARTERED PLC 02/04/2020c 4.9c BB 13.6% 7.000%
SVENSKA HANDELSBANKEN AB 01/03/2021c 4.1c BBB 23.6% 5.125%
BNP PARIBAS 30/03/2021c 3.9c BB+ 11.8% 5.125%
ROYAL BK SCOTLND GRP PLC 15/08/2021c 4.6c B+ 15.5% 7.000%
UBS GROUP AG 10/08/2021c 4.2c BB+ 13.7% 7.000%
SOCIETE GENERALE 13/09/2021c 4.5c BB 11.7% 5.125%
BARCLAYS PLC 15/03/2022c 4.9c BB- 13.1% 7.000%
SWEDBANK AB 17/03/2022c 4.0c BBB- 23.9% 5.125%
BARCLAYS BANK PLC 21/11/2022 4.2c BB+ 13.1% 7.000%
STANDARD CHARTERED PLC 02/04/2023c 5.4c BB+ 13.6% 7.000%
CREDIT SUISSE GROUP AG 11/12/2023c 4.4c BB 13.2% 5.125%
SOCIETE GENERALE 18/12/2023c 5.2c BB+ 11.7% 5.125%
UBS AG 15/05/2024 3.9 BBB+ 13.5% 5.000%
LLOYDS BANKING GROUP PLC 27/06/2024c 4.9c BB 13.6% 7.000%
DEUTSCHE BANK AG 30/04/2025c 6.3c B+ 13.8% 5.125%
BANK CALL DATE YTC RATING CET1
GOLDMAN SACHS GROUP INC 10/05/2019c 3.3c BB+ 11.7%
AMERICAN EXPRESS CO 15/11/2019c 3.0c BBB- 11.5%
STATE STREET CORP 15/09/2020c 3.0c BBB 12.3%
CITIGROUP INC 15/02/2023c 4.0c BB+ 13.1%
JPMORGAN CHASE & CO 01/08/2023c 3.9c BBB- 12.9%
BANK OF NEW YORK MELLON 20/06/2023c 4.2c BBB 10.7%
WELLS FARGO & COMPANY 15/06/2024c 4.2c BBB- 12.3%
BANK OF AMERICA CORP 23/10/2024c 4.0c BB+ 11.9%
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7 November 2017
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Best Private Client Investment Team – UK & Best Global Equity Fund -2016
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