[MIDDAY UPDATE:] Back to Business
MIDDAY UPDATE: Back to Business 07/08/24
- The Street is looking for $15bln of issuance this week, on average, with estimates ranging from a low of $10bln, to a high of $20bln.
- There were two deals announced overnight: Kraton Corporation is in the market with a 3yr note offering, while ANZ Banking Group, in its second foray into the US public market this month, is looking to sell 3yr fixed and/or floating rate notes.
- 5 ex-SSA borrowers followed up this morning, making it 7 total ex-SSA deals today: Banco Santander with a 4nc3 fixed and/or FRN & 7yr offering, American Honda is selling 3yr fixed and/or FRN & 7yrs, Athene Global Funding is also looking to sell a 3yr fixed and/or FRN & 7yr deal, Aercap is selling 30.75nc5.5 junior subordinated notes and finally Broadcom is in the market this morning with a 3yr, 5yr & long 7yr deal
- 2 SSA issuers are also announced deals today: a 3yr global offering from Japan Bank for International Cooperation & a 10yr sustainability bond from Inter-American Development Bank
- The three major indices are higher this morning with the Dow (+0.58%), the Nasdaq (+0.16%) and S&P (+0.23%)
- Treasury yields are higher so far today, with the benchmark 10yr note now yielding 4.285% (+1bp), while the long bond is yielding 4.481%, 1bp higher, and the 2yr note yielding 4.618%, 2bp higher.
- Corporate spreads tightened 1bp with the average high grade bond still trading 92bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a rate cut in September at 75.4%, up from 59.8% last week.
- In M&A news, Eli Lilly is acquiring Morphic for $3.2bln in an all cash deal, Skydance Media has agreed to merge with Paramount Global and Devon Energy is acquiring the Williston Basin business of Grayson Mill Energy for $5bln in a cash and stock deal
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2024 HIGH GRADE ISSUANCE - 07/08 WEEK, JULY & 2024 ESTIMATES
| 07/08 WK | LO EST | AVE EST | HI EST | ACTUAL | JUL | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $10.0B | $15.0B | $20.0B | $0 | EX-SSA | $80.0B | $85.0B | $95.0B | $5,350 | EX-SSA | $1.100B | $1.275B | $1.350B | $888,709 |
| OVERALL | $15.0B | $22.5B | $27.5B | $0 | OVERALL | $90.0B | $100.0B | $110.0B | $12,850 | OVERALL | $1.350B | $1.420B | $1.550B | $1,138,559 |
2024 HIGH GRADE ISSUANCE - RECENT MANDATES.
| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 30-May | REC LIMITED | BAA3/BBB- | BARC/DBS/HSBC/MIZ/MUFG/SCB | 3-Jun | 144A REG S DEAL |
| 25-Jun | NONGHYUP BANK | AA3/A+ | BOA/C/CA/HSBC/MUFG/SCB | 1-Jul | 144A REG S DEAL |
| 28-Jun | WOORI BANK | A1/A+ | BOA/C/HSBC/MUFG/SG/WFS | 4-Jul | 144A REG S TIER I SUB S |
| 7-Jul | PANASONIC | BOA/MS | 8-Jul | 3YR AND/OR 10YR DEAL |
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