European Morning Credit: Today in European Credit

Research evidence excerpt

European Morning Credit: Today in European Credit

Accessible version

European Morning Credit

Today in European Credit

3Q26 Best Ideas 10 June 2026

Please join us for the latest edition of our Best Ideas Webcast. The call will take place Credit

today at 2pm UK time. Please contact your BofA sales representative for more details. Europe

Strategy EuropeanBofASE (France)Credit Rsch Grp

Credit Strategy – Europe: Credit liquidity is increasingly macro-driven, with CDS See Team Page for List of Analysts

indices, ETFs and portfolio trading dominating risk transfer. FMFs and ETFs anchor

demand but rising yields are shifting flows and reinforcing a more cautious investor

stance. CDS index & options liquidity near record highs as fragility rises.

See our report: Credit market liquidity: macro tools take centre stage (IA) Exhibit 1: Just published

Recent publications from European Credit

Financials Research

UK Specialist Banks: OW Paragon's AT1 as wide spreads overly discount healthy loan Credit Strategy - Europe

quality, satisfactory and resilient profits and sound capital. UW OSB's T2 and £9.5% Credit market liquidity: macro tools take centre

seniors. OSB's loan quality is much weaker than Paragon. Bonds trade too tight vs stage

better-rated peers. Both specialist lenders diversifying away from core professional buy- Ioannis Angelakis

to-let franchise, aiming for higher returns. UK Specialist Banks

See our report: OSB and Paragon: diversification does not always lower credit risk (LG) OSB and Paragon: diversification does not always

lower credit risk

Ayvens (AYVFP): We think fleet lessor Ayvens trades too wide of bank parent, SocGen Luis Garrido

(owns 55%). We expect parent funding support if needed. Initiate with OWs in €Senior: