Santander AT1 Call Dec/24 - 5.65% yield in EUR

Special situation: Z-Spread of ~200 bps, with low extension risk, and ~0.9 duration.

This is probably my best trade of 2023. The idea was first drafted in March 2023, during the SVB/Credit Suisse turmoil, when the bond was trading at 82. After the normalization in financial bonds and the rates spike in October, we actioned again at 91.

Even though the idea does not offer the same level of risk/reward as in those instances, it’s still act…