Depfa ACS to outperform peers as rating fears recede

By Bill Thornhill
08 May 2014

Depfa ACS's bonds could go on to trade tighter than any other Irish covered paper as the names of the failed bank’s preferred bidders emerged. The prospective buyers' strong rating suggests Depfa ACS's rating is safe, and even if a sale is not agreed, the German government’s continued ownership means the rating is protected.

Depfa ACS's bonds due 2016 tightened two weeks ago by around 35bp to 100bp over mid-swaps on speculation that Depfa Bank Plc would remain in the hands of the German government and not be sold to an unrated entity. If the bonds were sold to an unrated hedge ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial