AMERICAS

摘要

At the 9% area, initial price thoughts on Brazilian investment bank BTG pactual's debut Tier 1 perp was deemed ambitious, but an anchor order from its partners made all the difference when the deal priced last week at an even tighter yield of 8.75%. Set against the 8.9% yield to call on state-controlled Banco do Brasil's own Basel Ⅲ-compliant 9% non-call 10 perp, BTG's inital talk looked bold. And while a call in year five for the BTG structure should have justified tighter pricing, the 75bp differential between fives and 10s would still have put a Banco do Brasil non-call five perp at around 8.25%-8.15%, or some 75bp-85bp inside BTG's initial talk, said a banker away from the deal.