SBB - comment
SBB’s completion of its tender offer points to capitulation by some hybrid holders and at the long end of the SUNs (€155m of the 2029 SUNs were successfully tendered). The logic of using liquidity to buy €1 of debt for 41c is understandable, but only if the shorter-term debt can be repaid from sale proceeds. Management may be feeling very bullish on getting the residential sale away with a lot of cash coming in. However, SBB wouldn’t be the first company to hit the accelerator rather than the brakes as they approach the cliff. For now, we remain sceptical.