Trade Idea

Heineken Pair Opportunity Update

BUY

HEIANA 2.875% 08/04/25

XS0811555183
SELL

HEIANA 1.625% 03/30/25

XS2147977479

Update

Reversion

Post From August 9th 2021

HEIANA 1.625% 25 trading at 18bps

Why are the HEIANA 2.875% 25's trading 15bps wider than the HEIANA 1.625% 25's?


We have been monitoring this pair since the begining of August 2021 and can't figure out why an issue with a higher coupon, higher amount issued, same maturity year (even using 2/28/25 call option for 1.625%) and on same credit curve is trading 15bps points wider.

The trailing 12 month average spread difference between the two issues is at 1.25bps. A 15bps difference is almost 4 standard deviations away from the mean!

Holders of the 1.625% 25's should lock in their profits on the and swap into the 2.875% 25's before spread compression happens between the two issues.

If you know why these two Heineken issues are trading so far apart, then leave a comment on the LinkedIn post.

Bloomberg Terminal users can copy and paste the following links into IB for detailed analysis:

Buy Bond
{XS0811555183 Corp YAS<GO>}
Sell Bond
{XS2147977479 Corp YAS<GO>}
Pair Evaluation

{XS0811555183 Corp XS2147977479 Corp SW<GO>}
Pair Spread Graph

{XS0811555183 Corp XS2147977479 Corp HS<GO>} 

Pair Return Calculator

{XS0811555183 Corp XS2147977479 Corp FIHZ<GO>}

Pair Summary

{XS0811555183 Corp XS2147977479 Corp SS<GO>}
Pair Scenario Analysis

{XS0811555183 Corp XS2147977479 Corp FISA<GO>}


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