Canary Wharf announced a tender offer for some of its B3, C2 and D2 notes in the Canary Wharf Finance II CMBS transaction.
The tender process sets a minimum and maximum purchase price as well as a maximum take-up per class.
Barclays Capital analysts said that, based on this analysis, they suggest that investors offer their bonds in the C2 and D2 classes at the low end of the price range. The B3 class shows a 44% loss in the severe stress in 2Q13.
"However, if we take into account the time value of money and the significantly more attractive potential yields offered from re-investment, tendering at the wide end of the price range might still make sense," analysts said. "For investors, who have a more positive and/or long-term view, in line with our base case, we recommend that they do not tender their bonds."