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Brse Frankfurt-News: Corporates make up the music and Grenke ground (bonds) | message


FRANKFURT (DEUTSCHE-BOERSE AG) – Investors rely on government bonds from southern European countries. Grenke regains trust. A new issue by Behrens is intended to secure the repayment of a bond that has matured. Investors are also interested in bonds from UBM, SGL TransGroup and Biofrontera.

October 9, 2020. FRANKFURT (Frankfurt Stock Exchange). Rising numbers of corona infections on the one hand and an ECB door that remains wide open for additional monetary policy measures on the other hand are driving demand for shares, but also for government bonds from the euro area. “Investors are looking for positive returns,” says Arthur Brunner of ICF Bank, explaining the increased interest in bonds from peripheral countries. As a result, the spreads on bonds from countries with good credit ratings narrowed even further.

“At 0.856 percent, the yield on ten-year Greek government bonds is now roughly at the level of US Treasuries.” This would currently come to 0.765 percent with the same maturity, federal bonds yielded little change at minus 0.53 percent over the week.

How difficult it is for insurance companies to generate positive returns in the ongoing slump in interest rates is illustrated by the latest announcement by the German industry leader. “For newly concluded life insurance policies, Allianz will reduce the guarantee commitment from 100 to 90 percent of the premiums paid in from 2021,” says Brunner.

New Behrens offer with an exchange option

According to Brunner, a new five-year bond from Behrens (WKN A3H2SM) with a coupon of 7.25 percent is currently in subscription. With the inclusion of the planned 15 million euros, the company wants to settle the value due in November (WKN A161Y5) with a remaining volume of around 16 million euros. The manufacturer of fastening technology for wood is offering bond owners who decide to exchange them by November 2nd a special payment of 25 euros plus the accrued interest.

In the meantime, support for Behrens from the state of Schleswig Holstein in the amount of two million euros seems to be secured, provided that the requested silent participation is approved from the federal economic stabilization fund. There are positive signals about this.

Trust in Grenke is growing again

Gregor Daniel from Walter Ludwig Wertpapierhandelsbank sees purchases in Grenke bonds in trading existing corporate bonds. A value that runs until 2022 (WKN A189PU) with a coupon of 1.125 percent has recovered noticeably. “After 74.5 percent last Friday, the value is currently 85.5 percent.” At the same time, a loan from the leasing specialist (WKN A2R98B) due in 2025 is better off at a rate of 77 percent than a week ago.

As part of the fraud allegations by Fraser Perring against Grenke, the KPMG auditors confirmed the reported bank balance of the Baden-Baden company to over 98 percent a few days ago. Warth & Klein Grant Thornton, commissioned by company boss Wolfgang Grenke, is still examining the incidents, and the German financial supervisory authority BaFin is still investigating the allegations.

SGL TransGroup and Biofrontera stirs hearts

According to Brunner, a EUR 250 million bond from SGL TransGroup (WKN A2R9NL) due in November 2024 and a coupon of 6.75 percent is tending to be sold by private investors. Institutional investors, however, would have stocked up on the bonds. On a weekly basis, the paper is up slightly with an increase from 97 to 97.80 percent.

A Biofrontera bond (WKN A3E454) due in December 2021 with a nominal annual interest rate of 1 percent would also be brisk but balanced.

Convincing new UBM deal

Daniel sees mostly purchases in a UBM bond (WKN A2RS14) with a coupon of 3.125 percent that runs until 2023. This week, the Austrian real estate group sold its stake in 181 apartments in Vienna’s Nordbahnviertel for around 50 million euros to Vonovia. The entire project is expected to be completed in 2022. The bond currently costs around 96 percent.

by: Iris Merker

October 9, 2020, © Deutsche Börse AG

(Deutsche Börse AG is solely responsible for the content of the column. The contributions are not an invitation to buy or sell securities or other assets.)

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