[MIDDAY UPDATE:] Better Than Expected
- 2 ex-SSA borrowers raised $1.75bln yesterday, bringing the total raised on the week to $18.25bln
- There were no deals announced this morning, making it the 11th "zero" ex-SSA issuance day of the year. There were 32 last year and 37 in 2022
- The three major indices are mixed with the Dow up 90pts (+0.22%) along with the S&P (+0.11%) higher. The Nasdaq is down (-0.11%)
- Treasury yields are lower, with the benchmark 10yr note now yielding 4.174% (-11bp), while the long bond is yielding 4.382%, 9bp lower, and the 2yr note yielding 4.503%, just barely lower.
- Corporate spreads were unchanged 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 81.3%, up from 69.7% last week.
- Bain Capital has agreed to acquire Envestnet for $4.5bln cash
- Inflation data was better than expected today: CPI MoM was -0.1% vs 0.1% estimate while YoY came in at 3.0% vs 3.1% expected
- Weekly Jobless Claims fell 222k vs 235k expected while continuing claims fell to 1.852m vs 1.86m expected.
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2024 HIGH GRADE ISSUANCE - 07/08 WEEK, JULY & 2024 ESTIMATES
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| 07/08 WK | LO EST | AVE EST | HI EST | ACTUAL | JUN | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $20.0B | $18,250 | EX-SSA | $80.0B | $85.0B | $95.0B | $23,600 | EX-SSA | $1.100B | $1.275B | $1.350B | $907,059 | ||
| OVERALL | $28,250 | OVERALL | $90.0B | $100.0B | $110.0B | $41,100 | OVERALL | $1.350B | $1.420B | $1.550B | $1,166,909 |
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2024 HIGH GRADE ISSUANCE - 2023 VS 2024 COMPARISON
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| 10-Jul | 07/01 WK | 07/08 WK | 07/15 WK | 07/22 WK | 07/29 WK | MTD | 23 MTD | 24 YTD | 23 YTD | CHNG |
| IND | 0 | 6000 | 6000 | 0 | 257775 | 272470 | -5% | |||
| UTL | 0 | 0 | 0 | 0 | 78600 | 73990 | 6% | |||
| FIG | 0 | 2750 | 2750 | 4700 | 288900 | 185775 | 56% | |||
| Y(I) | 350 | 1000 | 1350 | 1500 | 78184 | 42350 | 85% | |||
| Y(F) | 5000 | 8500 | 13500 | 14550 | 188470 | 153150 | 23% | |||
| Y(U) | 0 | 0 | 0 | 500 | 15130 | 10000 | 51% | |||
| SSA | 7500 | 10000 | 17500 | 0 | 259850 | 218000 | 19% | |||
| EX-SSA | 5350 | 18250 | 0 | 0 | 0 | 23600 | 21250 | 907059 | 737735 | 23.0% |
| OVERALL | 12850 | 28250 | 0 | 0 | 0 | 41100 | 28750 | 1166909 | 955735 | 22.1% |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| 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 SUBS |
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2024 HIGH GRADE ISSUANCE - 07/10 PRICINGS
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ISSUE | RATINGS | MGRS | AMT | CALL | CPN | MAT | SPRD | TYPE | |
| 07/10 | SAUDI ARAMCO OIL COMPANY | A1/NR/A+ | C/GS/HSBC/JPM/MS/SNB/+14 PASSIVES | 2000 | T+20 | 10YR | +105 | SA | |
| 07/10 | SAUDI ARAMCO OIL COMPANY | A1/NR/A+ | C/GS/HSBC/JPM/MS/SNB/+14 PASSIVES | 2000 | T+25 | 30YR | +145 | SA | |
| 07/10 | SAUDI ARAMCO OIL COMPANY | A1/NR/A+ | C/GS/HSBC/JPM/MS/SNB/+14 PASSIVES | 2000 | T+25 | 40YR | +155 | SA | |
| 07/10 | MITSUBISHI CORP | A2/A | C/JPM/MS/GS | 500 | T+15 | 5.125 | 10YR | +93 | YI |
| 07/10 | BANQUE FEDERATIVE CREDIT MUTUEL | AA3/A+ | C/GS/JPM/WFS | 500 | NC | SOFR+107 | 3.5YR | FRN | YF |
| 07/10 | BANQUE FEDERATIVE CREDIT MUTUEL | AA3/A+ | C/GS/JPM/WFS | 750 | NC | 5.194 | 3.5YR | +80 | YF |
| 2/3 | 1750 | 3/6 | 7750 | . |
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