FIG Focus: European Financial Institutions June 2026

Research evidence excerpt

FIG Focus: European Financial Institutions June 2026

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FIG Focus

European Financial Institutions June 2026

Banks: initiations on OSB and Ayvens… 01 July 2026

In June, we added coverage on UK specialist bank OSB Group’s bonds; we are UW OSB’s Credit

£9.993% T2 and £9.5% senior holdco which, in our view, trade too close to more highly Europe

rated, larger peers with stronger loan quality. New MW on OSB’s £8.875% senior holdco

bonds where liability management is not impossible and we think sets a ceiling to Table of Contents

spreads, even if the economics do not currently look very compelling to us (see: OSB and

Index of News & Views in June 2026 2

Paragon: diversification does not always lower credit risk). We initiated on fleet lessor

Event Calendar 3

Ayvens (A1/A-/A), which we think trades too far wide of its French bank parent, Societe

Generale (see: Transitioning to strength. Selectively Overweight). We noted that Total and excess returns YTD 3

Paragon’s £4.375% ’31-26 Tier 2 stepped into the 3-month par call window. As Paragon Bank top and bottom bonds this month 3

is an infrequent wholesale issuer and a smaller bank (£20bn assets), we do not see a Insurance top and bottom bonds this month 3

broad read-across for large issuers, but this new data point is a reminder that not all CDS monthly performance - Banks 3

banks follow what is seemingly still an overwhelming market convention, to call Tier 2 CDS monthly performance – Insurance 3

bonds at the first optional call date. (see: EMC - 12 June 2026). Banks news & views 3

Rating Map: European Banking in Focus 3

…rating action, company announcements, proposed M&A Rating Map: European Insurance in Focus 3