Was in hindsight wel erg vroege voorkennis ;-)
"Erste: Announced a call of its legacy Tier 1 securities yesterday at par: i) €109m 5.25% Fixed-to-Fixed T1s (XS0215338152 - quoted at ~97 prior to the call), ii) €132m CMS+10bp T1s (XS0188305741 - quoted at ~55) and iii) €124m 5.294% Step-up T1s (XS0268694808 - quoted ~100; this was the first call date). Of note, Erste’s view was that none of these instruments would have conferred any capital value (even as Tier 2) after the expiry of the grandfathering period at FY21. The call on the € 5.294% 16s was more broadly expected as it was the bonds’ first call date and Erste had linked a potential call with AT1 issuance previously (and then issued AT1), but the call of the CMS is much more of a surprise given where it was trading. However, given that Erste has undertaken LME previously, we simply do not think it would have got much take-up from another LME. Therefore, with Erste wanting to clean up its capital structure in light of its 12.7% FL CET1, we can understand how a call makes sense. This could also help the name re-building its reputation post its 2015 coupon skip. Of note, we understand the calls will have a negative ~20bp impact on transitional T1 and 10bp on transitional CET1. Overall, this is the first time we can remember a CMS bond (with such a low reset) being called at par and represents another example of legacy Capital securities being taken out after a series of OpCo and Disco tenders this year and last (Commerzbank, Standard Chartered and Lloyds all tendered for Discos over the last 18-month)."