Money In The Bank: Iberian Insights: new issues, new opportunities

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Money In The Bank: Iberian Insights: new issues, new opportunities

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Money In The Bank

Iberian Insights: new issues, new

opportunities

Rating Change - Credit

Spreads still selectively cheap, best value in new SNP 07 July 2026

Are mid-sized Iberian bank spreads still cheap vs core Europe? We think yes… selectively. High Grade Credit

Top picks CaixaBank and Bankinter are supported by scale, profitability and asset quality, Europe

recent SNP look cheap (add OWs Caixa €3.875 SNP ’37s, Bankinter SNP €3.75 ’34s). We Banks

also like Ibercaja Sr Pref (reiterate OW €3.125 ‘31s) which looks undervalued given Katharine Lennon

revenue resilience, asset quality. We have become more comfortable with Abanca and Research Analyst

Unicaja fundamentals, but think new issues look expensive vs bonds from better-rated MLI+44 (UK)20 7995 6148

peers (add MW the Abanca €3.75 Sr Pref 34s, Unicaja €3.75 SNP 33s). Still cautious on katharine.lennon@bofa.com

Cajamar Sr Pref (reiterate UW €3.5 ‘31s) on asset risk. In Tier 2, we like BCP €4.125 ‘38s Richard Thomas

Research Analyst

(add OW). Add OW Bankinter AT1 NC30s given attractive cash price. Add OW Unicaja BofASE (France)

€5.95 NC31s which looks cheap; we’d be comfortable with the variation language here. richard2.thomas@bofa.com

Luis Garrido, CFA

Capital ample post CCyB increase, but MREL also key ResearchBofASE (France)Analyst

Capital buffers remain solid (5ppts on average) following the October Spanish CCyB hike luis.garrido@bofa.com

(from 0% to 0.5%), with Unicaja strongest (6.8ppts) and Cajamar weakest (3.0ppts).

MREL buffers are equally as important as capital we think – especially for AT1 – since

See our latest reports:breaches could potentially restrict coupons. Average buffer to MREL of 2.3ppts (end-