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Junior Member
Crédit Agricole S.A. - CASHA
Hi
Anybody concerned about the Credit Agricole bonds - CASHA now selling at 87% of par. The market seems to be discounting them for fear over their Greek exposure
Any comments or views on how the Greek/Euro situation could/will impact them. CA look to have significant Greek exposure through their investment in Emporiki Bank
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I think the market has been discounting them for a while because they're perpetual and the interest rate reset doesn't look great.
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Junior Member
CA v ANZ
Thanks for your reply Snapper, but look at these two bonds
ANBHA – ANZ Bank
Perpetual, unsecured, deeply subordinated bonds
Credit Rating A+
Current Coupon Rate 9.66%
Reset Date 18 April 2013
On the 18th of April 2013, if not called, the coupon rate will be reset for a further 5 years at the then 5yr swap rate plus the issue margin of 2.00%
Current reset if done today – 4.35+2.00 = 6.35%
Current price: 107
CASHA – Credit Agricole
Perpetual, unsecured, deeply subordinated notes
Credit Rating A
Current Coupon Rate 10.035%
Reset Date 19 December 2012
On the 19 December 2012, the coupon rate will be reset for a further 5 years, until 19 December 2017, at the then 5 year swap rate plus the Issue Margin of 1.90%
Current reset if done today – 4.35+1.90 = 6.25%
Current price: 86
Both Perpetual, unsecured, deeply subordinated notes, one with A rating and 10.04%, the other with A+ and 9.66%, resets within 4 months of each other and reset 0.10% different
People are much more trusting of ANZ than CA – I would say one is overvalued and the other undervalued
Comments?
DISC – I hold both
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Member
![Quote](images/misc/quote_icon.png) Originally Posted by D B Cooper
Thanks for your reply Snapper, but look at these two bonds
ANBHA – ANZ Bank
Perpetual, unsecured, deeply subordinated bonds
Credit Rating A+
Current Coupon Rate 9.66%
Reset Date 18 April 2013
On the 18th of April 2013, if not called, the coupon rate will be reset for a further 5 years at the then 5yr swap rate plus the issue margin of 2.00%
Current reset if done today – 4.35+2.00 = 6.35%
Current price: 107
CASHA – Credit Agricole
Perpetual, unsecured, deeply subordinated notes
Credit Rating A
Current Coupon Rate 10.035%
Reset Date 19 December 2012
On the 19 December 2012, the coupon rate will be reset for a further 5 years, until 19 December 2017, at the then 5 year swap rate plus the Issue Margin of 1.90%
Current reset if done today – 4.35+1.90 = 6.25%
Current price: 86
Both Perpetual, unsecured, deeply subordinated notes, one with A rating and 10.04%, the other with A+ and 9.66%, resets within 4 months of each other and reset 0.10% different
People are much more trusting of ANZ than CA – I would say one is overvalued and the other undervalued
Comments?
DISC – I hold both
A few days ago Moodys downgraded Credit Agricole's credit rating because it has a lot of loans in Greece. Market is usually right! CASHA is not as safe as before.
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Member
Greece vote:
"Numbers now out. Papandreou wins the confidence of the government. 155 MPs voted yes, four more than the 151 the prime minister needed - a majority in the 300-seat parliament."
CASHA price should have reached the bottom. I would be surprise if the price recovers a few cents this week.
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Member
HY Results announced
Net income of Credit Agricole S.A. in Q2 was 339 m Euro, much better than analysts forecasted (187 m Euro). Share price increased by 5%.
At 10% interest rate, CASHA looks cheap at 60 cents (comparing with 60 cents of IFTHA paying 5% interest). It's hard to believe Infratil would be more reliable than Credit Agricole S.A. (a major bank in France) in terms of revenue and profit.
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I'd rather have IFTHA myself..also upside of probable swap rate increase in future . The Euro looks like its in difficulties....so Infratil may be more reliable.
QUOTE=Newman;355436]HY Results announced
Net income of Credit Agricole S.A. in Q2 was 339 m Euro, much better than analysts forecasted (187 m Euro). Share price increased by 5%.
At 10% interest rate, CASHA looks cheap at 60 cents (comparing with 60 cents of IFTHA paying 5% interest). It's hard to believe Infratil would be more reliable than Credit Agricole S.A. (a major bank in France) in terms of revenue and profit.[/QUOTE]
Last edited by BIRMANBOY; 26-08-2011 at 06:03 PM.
Reason: correction
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![Quote](images/misc/quote_icon.png) Originally Posted by Newman
HY Results announced
It's hard to believe Infratil would be more reliable than Credit Agricole S.A. (a major bank in France) in terms of revenue and profit.
I understand that Credit Agricole S A is one of the European institutions that lent large to Greece. I do not know if CASHA's are ring fenced from this turmoil.
Boop boop de do
Marilyn
Last edited by Marilyn Munroe; 29-08-2011 at 11:45 AM.
Reason: spelling
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Member
![Quote](images/misc/quote_icon.png) Originally Posted by Marilyn Munroe
I understand that Credit Agricole S A is one of the European institutions that lent large to Greece. I do not know if CASHA's are ring fenced from this turmoil.
Boop boop de do
Marilyn
Loss in Greece was written off. Core Tier 1 ratio increased to 8.9%. In comparison ANZ is going to sell another hybrid notes, convertable to ordinary shares when Tier 1 ratio drops to below 6%.
CASHA is traded 68 cents today.
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Member
What are the eqivalents of CASHA worthing?
If you go to Luxembourg Stock Exchange: http://www.bourse.lu/Accueil.jsp#
and type "credit agricole" in the Name box to search bonds and notes issued by Credit Agricole you would find a list of 3 pages. I checked 8 of the bonds/notes that Credit Agricole partially bought back on February 2012 and found that their trading price in the past year varied from 37-52 (cents per dollar) for FR0010161026 to 65-83 for FR0010814418. Also of interest is that CAD notes (FR0010359794) are due for interest payment on 11 August 2012.
If Credit Agricole pays interest to CAD Notes it would have to pay CASHA note-holders interest in mid-September. Am I right?
What stops Credit Agricole buying back CASHA notes?
Any interest in analysing CASHA?
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