EFTA Document EFTA01453169

***Intended for Non-Advisory Clients*** Buying opportunity in European hybrid bonds (CoCos) yielding 6.4-6.9%,having widened by 25- 40bp last week I KCP Capital Markets [I] BBVA 9% USD CoCo yield widened by 40bp in the last week (current yield to call: 6.9%) The recently issued Santander 6.25% EUR CoCo yield is up by 25bp (current yield to call: 6.4%) Both are good quality, high yielding, low trigger CoCos These are hybrid bonds that absorb losses when the capital ratio of the issuer falls