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SRLev 9%: Iemand rente ontvangen?

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  1. Henk 18 november 2016 14:56
    Hoi Sparhans, Ik heb dit bericht ook gelezen. Kan jij er misschien wat commentaar bijgeven? Waarom valt dit tegen? In het persbericht (per email) las ik:
    The interest rate on the bond resets to 5-year CHF mid-swap plus 5.625%.
    Dat is toch nog een redelijk rente? Ik heb zelf de 9%. Ik overzie op dit moment niet helemaal of dit ook iets betekent voor de 9%. Als jij er iets over te zeggen hebt (of iemand anders), graag.
    Bedankt, Henk.
  2. Lk-33 18 november 2016 15:43
    quote:

    Henk schreef op 18 november 2016 14:56:

    Hoi Sparhans, Ik heb dit bericht ook gelezen. Kan jij er misschien wat commentaar bijgeven? Waarom valt dit tegen? In het persbericht (per email) las ik:
    The interest rate on the bond resets to 5-year CHF mid-swap plus 5.625%.
    Dat is toch nog een redelijk rente? Ik heb zelf de 9%. Ik overzie op dit moment niet helemaal of dit ook iets betekent voor de 9%. Als jij er iets over te zeggen hebt (of iemand anders), graag.
    Bedankt, Henk.
    Uiteraard is het een teken van kracht als deze obligaties wel gecalled worden. Misschien zat de markt daarop te wachten. Van mij mogen ze nog een hele tijd doorlopen....
  3. Sparhans 18 november 2016 15:44
    Hi Henk,
    voor zover ik kan zien heeft Vivat er geen commentaar bij gegeven. De markt vat over het algemeen het niet-callen van achtergestelde bonds negatief op, want het geeft impliciet weer dat de onderneming zich minder gunstig of in het geheel niet (gunstiger) kan herfinancieren in de markt. Voor zover ik even snel kan zien in het prospectus van de CHF bond is deze perpetual en is de EUR bond dated met uiterlijke aflosdatum in 2041 (na eventueel niet callen in 2021). Dat maakt voor mij een groot verschil en je kunt het niet callen twee-ledig uitleggen. Aan de ene kant geeft het idd weer dat Vivat zich niet makkelijk kan herfinancieren in sub-debt markt, ergo ook de druk op de EUR bond die we vandaag zien.

    Aan de andere kant is een step van 5.625 bps ook wel aan de lage kant en loont het voor ze om deze bond door te laten lopen, zeker gezien de 5y CHF swap op -/- 34 bps die als basis dient. Met name ook voor de algehele kredietwaardigheid (ratios) en dus voor de EUR bonds is het best gunstig dat ze niet callen. Nou is het slechts CHF 105m notional, maar alle kleine beetjes helpen.

    Dus ik ben best positief voor de EUR bond, al heeft deze na de call in 2021 ook een step van 'slechts' 6.165% boven 12 maands euribor (momenteel -/- 7 bps maar mag hopen dat Draghi in 2021 de euribor weer n beetje onder controle heeft). Maar toch wel fijn dat hij dated is en we bij ons pensioen in 2041 'gegarandeerd' onze centjes terug krijgen : )

    Ter info, ik heb zelf positie. Mocht de EUR nog wat verder onder druk komen, dan pik ik nog wat op, want ik heb het idee dat de Chinese aandeelhouders na een turbulente start de boel wel enigszins onder controle cq de rust weer terug beginnen te krijgen. Nice weekend
  4. Henk 19 november 2016 10:55
    Nogmaals bedankt voor je commentaar.
    2041 moet ik ook kunnen halen. Maar het lijkt me wel dat een einddatum vooral belangrijk is bij bonds met een lage step-up. Als alles qua rente op een gegeven moment weer is genormaliseerd, dan levert 5.625% step-up toch een flinke rente op. Ik heb ook de Aegon 4.26 perpetual, en die heeft een step-up van maar 0.85%. Daarbij zou een einddatum m.i. een groter effect hebben.
    In het persbericht van Vivat staat overigens summier commentaar:

    Rationale
    Under the Solvency II transitional measures the Bond qualifies in full as Restricted Tier 1 own funds in the calculation of Solvency II own funds for ten years after 1 January 2016. At this specific time, it has been determined that it is currently in the interests of SRLEV and its policyholders not to exercise the call option to redeem the Bond.

    VIVAT NV, the parent company of SRLEV, has a strong Solvency II position well above its internal target.

    The interest rate on the bond resets to 5-year CHF mid-swap plus 5.625%.
  5. Hoover 19 november 2016 12:05
    Dit is op zich niet goed nieuws voor de prijs van de bond .. ik kan niet zien wat koers reactie is n.a.v. dit nieuws maar zal wel niet positief zijn. Verder van belang of de call eenmalig is , of bij iedere coupon betaling. (laatste lijkt me). Mochten rentes verder stijgen dat kan je alsnog gecalled worden.
    Je ziet overigens in Hek''s post dat de bonds tot 2026 worden ge-grandfathered. Dus die call kan nog lang opzicht laten wachten. Bij banken is de grandfathering veel korter, en hebben de banken "buckets" gekregen die ze met grandfathered T1 kunnen vullen. Die buckets lopen er langzaam uit. Dus er wordt gecalled als er geen ruimte meer is in de bucket. Volgens mij is het in 2019 gedaan.
    Dit overigens verklaart de positieve koersreactie op de Achmea 6%. Als die nog tot 2026 doorloopt is een koers van 103.50 goedkoop. (kijk maar naar de nieuwere 6% Achmea: XS0911388675 @ 108)
  6. Sparhans 23 november 2016 16:45
    Deze had ik even gemist vorige week:

    Rating Action: Moody's upgrades to Baa2 the financial strength rating on Vivat NV's operating subsidiaries with a stable outlook

    Global Credit Research - 11 Nov 2016

    London, 11 November 2016 -- Moody's Investors Service has today upgraded the insurance financial strength rating (IFSR) to Baa2 from Baa3 of SRLEV NV ("SRLEV") and REAAL Schadeverzekeringen NV ("Reaal Schade"), the two main operating subsidiaries of VIVAT N.V. ("Vivat", unrated). Moody's has also upgraded the backed subordinated and backed junior subordinate debt ratings of SRLEV to Ba1(hyb) from Ba2(hyb), reflecting standard notching for hybrid debt issued by operating companies. The outlook on all entities changed to stable from positive.

    Moody's considers the combined operations of VIVAT (primarily SRLEV and Reaal Schade) as one analytical unit.

    RATINGS RATIONALE

    The upgrade reflects Moody's view that the balance sheet profile of the group has significantly improved following the EUR1.35bn capital injection from its parent, Anbang Life Insurance Co., Ltd. ("Anbang", unrated). In addition the new management has addressed some of the key balance issues of Vivat and has embarked on a cost reduction program aimed at reducing the high cost level of the group.

    More specifically, following the capital injection in 2015 and the retained earnings in the first half of 2016, Solvency II coverage ratio stood at a good 182% (on a standard formula basis as at HY2016), which is broadly in line with most of the Dutch peers. The coverage ratio rose from c.160% as at YE2015, mainly driven by a decrease of credit spreads on German and Dutch government bonds. However, these market movements might reverse in the future, and Moody's believes the coverage ratio reported at YE2015 to be more consistent with Vivat's economic capitalisation. Like other Dutch insurers, Vivat also benefits from the tight regulatory oversight from the Dutch Central Bank on capitalisation.

    In addition financial leverage decreased substantially to c.27% as at YE2015 from 44% as at YE2014 as a result of the recapitalisation from the parent. The group has also focused on reducing a historically large duration mismatch to more moderate levels and on hedging Vivat's Solvency II position with respect to rate volatility. These hedges are likely to lower sensitivity to interest rate movements, which in the recent past has been a significant credit weakness for the issuer.

    The new management has also taken actions aimed at simplifying the business and reducing operational expenses in order to improve profitability and efficiency. Workforce will be reduced by c.1,200 units by year-end 2016, about one-third of the entire workforce, which will reduce significantly Vivat's cost base.

    As concerns investments, the group has increased its risk exposure on a selective basis albeit it was starting from a relatively conservative investment portfolio. Moody's continues to see asset quality as a relative credits strength for the group.

    Nevertheless, Vivat's improving credit profile remains challenged in light of the high guarantees on its life back-book and weak operating profitability, notwithstanding HY2016 net income of EUR578 million which largely reflected exceptional market developments. The above mentioned reduction in cost base and selective re-risking of the investment portfolio will likely increase Vivat's net income potential, however we expect technical profitability to remain subdued in 2017 reflecting the execution risks inherent in the new strategic course, the material organisational changes and the time required to fully re-establish the relationships with distributors, especially with intermediaries. Additionally the market position of the group has been weakened by the many years of strategic uncertainty and one of the group's main future challenge is to re-establish the company position in the Netherlands, which remains an extremely competitive market.

    OUTLOOK

    The outlook on SRLEV and Reaal Schade is stable, reflecting the expectation that their business and financial profiles will not change materially over the next 12 months.

    WHAT COULD MOVE THE RATING UP/DOWN

    The following factors could exert upward pressure on Vivat operating subsidiaries' IFSR: (1) Strengthening the market positions of the group in life and non-life by re-establishing its position with its clients and distributors; and/or (2) growing operating profitability to levels comparable with Vivat's Dutch peers (i.e. avg. 5Yr ROC in excess of 2%); and/or (3) further strengthening economic capitalisation to levels consistently in excess of 180% (standard formula basis) in combination with a reduction on the risk arising from the high guarantees on its life back-book.

    Conversely, the following factors could exert downward pressure on Vivat operating subsidiaries' IFSR: (1) Reduction in the economic capital position resulting in a Solvency II coverage ratio below 130%; and/or (2) financial leverage rising above 40%; and/or (3) prolonged pressures on its domestic market position; and/or (4) further weak profitability with 5Yr ROC consistently negative; and/or (5) significant deterioration on the financial profile of parent company, Anbang.

    LIST OF AFFECTED RATINGS

    The following ratings have been upgraded:

    - SRLEV NV's insurance financial strength rating Baa2 from Baa3; the outlook on SRLEV changed to stable from positive

    - Reaal Schadeverzekeringen NV's insurance financial strength rating Baa2 from Baa3; the outlook on Reaal Schade changed to stable from positive

    - SRLEV NV's backed subordinated debt rating upgraded to Ba1(hyb) from Ba2(hyb)

    - SRLEV NV's backed junior subordinated debt rating upgraded to Ba1(hyb) from Ba2(hyb)

    The principal methodology used in rating SRLEV NV was Global Life Insurers published in April 2016. The principal methodology used in rating REAAL Schadeverzekeringen NV was Global Property and Casualty Insurers published in June 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.
  7. triple a 23 november 2016 19:36
    quote:

    Sparhans schreef op 23 november 2016 16:45:

    Deze had ik even gemist vorige week:

    Rating Action: Moody's upgrades to Baa2 the financial strength rating on Vivat NV's operating subsidiaries with a stable outlook

    Global Credit Research - 11 Nov 2016

    London, 11 November 2016 -- Moody's Investors Service has today upgraded the insurance financial strength rating (IFSR) to Baa2 from Baa3 of SRLEV NV ("SRLEV") and REAAL Schadeverzekeringen NV ("Reaal Schade"), the two main operating subsidiaries of VIVAT N.V. ("Vivat", unrated). Moody's has also upgraded the backed subordinated and backed junior subordinate debt ratings of SRLEV to Ba1(hyb) from Ba2(hyb), reflecting standard notching for hybrid debt issued by operating companies. The outlook on all entities changed to stable from positive.

    Moody's considers the combined operations of VIVAT (primarily SRLEV and Reaal Schade) as one analytical unit.

    RATINGS RATIONALE

    The upgrade reflects Moody's view that the balance sheet profile of the group has significantly improved following the EUR1.35bn capital injection from its parent, Anbang Life Insurance Co., Ltd. ("Anbang", unrated). In addition the new management has addressed some of the key balance issues of Vivat and has embarked on a cost reduction program aimed at reducing the high cost level of the group.

    More specifically, following the capital injection in 2015 and the retained earnings in the first half of 2016, Solvency II coverage ratio stood at a good 182% (on a standard formula basis as at HY2016), which is broadly in line with most of the Dutch peers. The coverage ratio rose from c.160% as at YE2015, mainly driven by a decrease of credit spreads on German and Dutch government bonds. However, these market movements might reverse in the future, and Moody's believes the coverage ratio reported at YE2015 to be more consistent with Vivat's economic capitalisation. Like other Dutch insurers, Vivat also benefits from the tight regulatory oversight from the Dutch Central Bank on capitalisation.

    In addition financial leverage decreased substantially to c.27% as at YE2015 from 44% as at YE2014 as a result of the recapitalisation from the parent. The group has also focused on reducing a historically large duration mismatch to more moderate levels and on hedging Vivat's Solvency II position with respect to rate volatility. These hedges are likely to lower sensitivity to interest rate movements, which in the recent past has been a significant credit weakness for the issuer.

    The new management has also taken actions aimed at simplifying the business and reducing operational expenses in order to improve profitability and efficiency. Workforce will be reduced by c.1,200 units by year-end 2016, about one-third of the entire workforce, which will reduce significantly Vivat's cost base.

    As concerns investments, the group has increased its risk exposure on a selective basis albeit it was starting from a relatively conservative investment portfolio. Moody's continues to see asset quality as a relative credits strength for the group.

    Nevertheless, Vivat's improving credit profile remains challenged in light of the high guarantees on its life back-book and weak operating profitability, notwithstanding HY2016 net income of EUR578 million which largely reflected exceptional market developments. The above mentioned reduction in cost base and selective re-risking of the investment portfolio will likely increase Vivat's net income potential, however we expect technical profitability to remain subdued in 2017 reflecting the execution risks inherent in the new strategic course, the material organisational changes and the time required to fully re-establish the relationships with distributors, especially with intermediaries. Additionally the market position of the group has been weakened by the many years of strategic uncertainty and one of the group's main future challenge is to re-establish the company position in the Netherlands, which remains an extremely competitive market.

    OUTLOOK

    The outlook on SRLEV and Reaal Schade is stable, reflecting the expectation that their business and financial profiles will not change materially over the next 12 months.

    WHAT COULD MOVE THE RATING UP/DOWN

    The following factors could exert upward pressure on Vivat operating subsidiaries' IFSR: (1) Strengthening the market positions of the group in life and non-life by re-establishing its position with its clients and distributors; and/or (2) growing operating profitability to levels comparable with Vivat's Dutch peers (i.e. avg. 5Yr ROC in excess of 2%); and/or (3) further strengthening economic capitalisation to levels consistently in excess of 180% (standard formula basis) in combination with a reduction on the risk arising from the high guarantees on its life back-book.

    Conversely, the following factors could exert downward pressure on Vivat operating subsidiaries' IFSR: (1) Reduction in the economic capital position resulting in a Solvency II coverage ratio below 130%; and/or (2) financial leverage rising above 40%; and/or (3) prolonged pressures on its domestic market position; and/or (4) further weak profitability with 5Yr ROC consistently negative; and/or (5) significant deterioration on the financial profile of parent company, Anbang.

    LIST OF AFFECTED RATINGS

    The following ratings have been upgraded:

    - SRLEV NV's insurance financial strength rating Baa2 from Baa3; the outlook on SRLEV changed to stable from positive

    - Reaal Schadeverzekeringen NV's insurance financial strength rating Baa2 from Baa3; the outlook on Reaal Schade changed to stable from positive

    - SRLEV NV's backed subordinated debt rating upgraded to Ba1(hyb) from Ba2(hyb)

    - SRLEV NV's backed junior subordinated debt rating upgraded to Ba1(hyb) from Ba2(hyb)

    The principal methodology used in rating SRLEV NV was Global Life Insurers published in April 2016. The principal methodology used in rating REAAL Schadeverzekeringen NV was Global Property and Casualty Insurers published in June 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.
    @ Sparhans

    Hartelijk dank; Mooie opsteker voor Vivat; Ik heb de 9 % op mijn lijstje staan. Wordt nu toch interessanter; Is het een tier 1 of tier 2 lening?
  8. triple a 24 november 2016 09:24
    quote:

    Maat1956 schreef op 24 november 2016 01:22:

    @triple A, via Binck geen minimum. Ik zit er vol in.
    @Maat

    Hartelijk dank. Dat stelt me gerust. Ik heb al een bedrag naar Binck overgeboekt. Ga vandaag (bij) kopen. Gisteren €
    1000 gedaan om te kijken of het werkt. Ik begrijp, uit het feit dat je er vol in zit, dat de rente ook al lang weer wordt uitgekeerd.

    Vr Gr

    Triple A
  9. fwb 25 november 2016 14:04
    Vorige week was er een interessant bericht over de VIVAT CHF obligatie: CH0130249581

    vivat.nl/Media/Default/PDF%20persberi...

    Vivat heeft besloten om deze obligatie niet te callen, geheel tegen de verwachting in. Dit komt als een verrassing voor de markt, die een call had ingeprijsd.
    De prijs zakte dan ook meteen van 100 naar 95.
    De coupon op de obligatie was 7% en wordt nu 5yr CHF swap ( -0.38%) + 5.625%.
    Kennelijk is dat voor Vivat een gunstig niveau om zich te financieren.
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