Trade of the Week BAWAG

This report recommends the BAWAG EUR 3.125% 2029 senior bond as a 'Preferred' investment idea, citing operational momentum and potential rating upgrades. It views the bank's valuation as attractive relative to its European financial peers.

Key Takeaways

• 1.BAWAG demonstrates strong operational momentum and asset quality, with a strategic acquisition of Irish Permanent TSB Group.
• 2.The issuer credit outlook for BAWAG is upgraded to Improving, with potential for Moody's rating upside.
• 3.The EUR 3.125% 2029 senior bond is highlighted as an attractive, liquid carry opportunity.

Table of Contents

• Trade of the week: BAWAG
• Bond markets
• Credit development: What happened?
• Investment idea: Which bonds to consider?
• Issuer description: Who is BAWAG?
• Bonds: Attractive CIO valuation view
• UBS CIO risk views
• UBS CIO valuation views
• Appendix
• Required disclosures

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