Intermediate Capital Group Plc 6.25% 19/09/2020

Please find some complementary research on the 6.25% 19/09/20 bond issued by FTSE250-listed specialist asset manager Intermediate Capital Group Plc.

Following its launch last year, the bond has mostly traded above par, reaching at one point a high of 106.5. Having retraced to the 103 level, we believe the bond offers good value, trading on a GRY of 5.7%. With the ordinary shares climbing 57% over the last year, the market obviously concurs that it is a well-run company and S&P/Fitch have a BBB- investment grade credit rating on the issue.

With the general consensus forecasting a long period of low interest rates, we feel that the bond looks good value at current levels.