Investment Recommendation Disclosure

Important Information

A list of all the recommendations on any financial instrument during the preceding 12-month period is available upon request free of charge.

This material has been prepared by personnel in the Sales and/or Trading teams of Banco Santander, S.A. or its affiliates, including Santander UK plc and Abbey National Treasury Services plc (together, “Santander”) and is not a product of Santander’s Research unit. It is an investment recommendation and has been prepared pursuant to Santander policies, procedures and internal rules of conduct for managing conflicts of interest including information barriers and, where appropriate, establishing specific restrictions on sales and trading activity. Information concerning the management of conflicts of interest are available on request.

Explanation of Recommendation System

Rating Instrument type Definition
Buy General Upside of more than 15%
Bond Buy the bond for an expected average return of at least 10bp in 3 months (decline in the yield rate), assuming a directional risk.
Swap Enter a swap receiving the fixed rate for an expected average return of at least 10bp in 3 months (decline in the swap rate), assuming a directional risk
FX Appreciation of a given currency with an expected return of at least 5% in 3 months
Relative value Enter a long position in a given instrument vs a short position in another instrument (with a longer maturity for steepeners) for an expected average return of at least 5bp in 3 months (increase in the spread between both rates)
Hold General Upside of 10-15%
Sell General Upside of less than 10%
Bond Sell the bond for an expected average return of at least 10bp in 3 months (increase in the yield rate), assuming a directional risk.
Swap Enter a swap paying the fixed rate for an expected average return of at least 10bp in 3 months (increase in the swap rate), assuming a directional risk.
FX Depreciation of a given currency with an expected return of at least 5% in 3 months.
Relative
value
Enter a long position in a given instrument vs a short position in another instrument (with a shorter maturity for flatteners) for an expected average return of at least 5bp in 3 months (decline in the spread between both rates).

Unless otherwise specifically stated, the views or opinions expressed in this report accurately reflect the views of the undersigned author(s) of this investment recommendation and/or the specific Sales and/or Trading team from which it originates and may differ from the views or opinions expressed by other areas of Santander, including the Research Department. Where the original communication which formed the basis of this recommendation has been altered it will be indicated as such. In addition, the undersigned author(s) and/or disseminator(s) may have received or will receive compensation based upon, among other factors, the overall profitability of the Santander group, including profits derived from investment banking activities. The basis of methodology and valuation (where used) can be made available upon request.

This investment recommendation is intended for dissemination to market professionals (eligible counterparties and professional clients), but not retail clients. This information is provided on a confidential basis and may not be reproduced, redistributed or transmitted, in whole or in part, without Santander’s consent. Any unauthorised use is strictly prohibited.

This material contains an independent explanation of the matters contained within and must not be relied upon as investment advice.  It does not take into account whether an investment, course of action, or associated risks are suitable for the recipient.  This material is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Recipients should seek independent professional financial advice regarding the legal, financial, tax and regulatory consequences of any transaction as well as the suitability and/or appropriateness of making an investment or implementing any investment strategies discussed in this document and should understand that statements regarding future prospects may not be realised. Investors should note that income, if any, from investments, may fluctuate and that the value of such investments may rise or fall. Accordingly, investors may receive back less than they originally invested. To the fullest extent permitted by law, Santander does not accept any liability whatsoever (including in negligence) for any direct or consequential loss arising from any use of or reliance on this material. Please note the publication date of this material. It may contain specific information that is no longer current and should not be used to make an investment decision. Unless otherwise indicated, there is no intention to update this material.

Any opinions expressed are based on information available from public sources believed to be reliable, but no representation or warranty, express or implied, is made that such information is accurate, complete or up to date and it should not be relied upon as such. Furthermore, this investment recommendation does not constitute an offer or solicitation to buy or sell any securities or other investment.

In relation to the identification of conflicts as required under the MAR investment recommendation requirements, the natural person(s) involved in the production of the recommendation will specifically identify and disclose all conflicts that are known or reasonably expected to be known to relate to them. Santander Sales and Trading personnel may hold securities in the entities discussed in this investment recommendation. Pursuant to Santander’s Compliance Policies, all relevant personal account transactions require the prior written approval of Santander’s Compliance team. 

Santander may have a net long or short financial interest in excess of 0.5% of the total issued share capital of the entities mentioned in this investment recommendation. Information relating to this is available upon request.

The entities mentioned in this investment recommendation may have a net long interest in excess of 5% of the total issued share capital of Santander.  Information relating to this is available upon request.

Santander is not party to any agreement relating to the production of this investment recommendation with any entities mentioned in this investment recommendation.

Santander is a market maker for the financial instruments listed here http://www.londonstockexchange.com/products-and-services/trading-services/registered-market-makers-by-security.xls. Santander may act as a liquidity provider, act as principal or agent, buy, sell, lend or borrow securities of the entities mentioned in this report or derivatives thereon. Santander may have a financial interest in the entities mentioned in this report, including a long or short position in their securities and/or options, futures or other derivative instruments based thereon, or vice versa. Information relating to this is available upon request.

Santander may, in the last twelve months, have been lead or co-lead manager, have solicited or performed investment banking and/or underwriting activities and/or other services (including acting as adviser, manager, or lender) for any entity referred to in this report and all other activities as set out in Section A and B of Annex I or Directive 2014/65/EU of the European Parliament and of the Council which may have given rise to a payment or promise of a payment in relation to these services. Information relating to this is available upon request.

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