[MIDDAY UPDATE:] Big Tech’s Big Fright
- 4 ex-SSA issuers announced deals today (see table below)
- Stocks: DOW (-165), S&P500 (-1.08%) and NASDAQ (-1.93%)
- Treasury yields are higher with the benchmark 10yr yielding 4.323% (+2bp), the long bond yielding 4.512% (+1bp), and the 2yr yielding 4.209% (+3bp)
- Corporate spreads were unchanged with the average high grade bond trading 84bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a 25bp rate cut in November at 96.2% up from 95.5% last week and no cut at 3.8% down from 4.5% last week
- META & MSFT reported earnings and updated outlooks this morning, which fell short of investor expectations
- In M&A news, Siemens has agreed to acquire Altair for $10bln
- Personal Income rose 0.3% in Sept, in line with expectations
- Personal Spending rose 0.5% vs estimates of +0.4%
- Initial Jobless Claims fell to 216k vs estimates of 230k
- Chicago PMI was 41.6 in October vs estimates of 47.0
2024 HIGH GRADE ISSUANCE- 10/28 WEEK, OCTOBER & 2024 ESTIMATES
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| 10/28 WK | LO EST | AVE EST | HI EST | ACTUAL | OCT | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $25.0B | $23,800 | EX-SSA | $115.0B | $91,350 | EX-SSA | $1,379,858 | |||||||
| OVERALL | $30.0B | $28,940 | OVERALL | $140.0B | $150.0B | $165.0B | $116,080 | OVERALL | $1,744,873 |
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2024 HIGH GRADE ISSUANCE - 10/31 CALENDAR
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA | MLM | 34 | BAA2/BBB+ | JPM | +125 A |
| TBA | MLM | 64 | BAA2/BBB+ | DB | +145 A |
| TBA | F | 31 | BA1/BBB- | DB | +205 A |
| TBA | EIX | 32 | BAA2/BBB- | BARC | +130 A |
| TBA | HZN | 34 | NR/BBB | BOA | +212.5 A |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 9-Sep | SP GROUP | AA1/AA+ | BNP/MS | 23-Sep |
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