[MIDDAY UPDATE:] End of Year Deal Dash Continues
- 8 ex-SSA (including 2 yankees) issuers announced deals (see table below)
- Stocks: DOW (-101), S&P500 (-0.17%) and NASDAQ (-0.11%)
- Treasury yields are mostly higher with the benchmark 10yr yielding 4.203% (+1bp), the long bond yielding 4.375% (+2bp), and the 2yr yielding 4.175% (unch)
- Corporate spreads tightened 2bp with the average high grade bond trading 81bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a 25bp rate cut in December at 70.3% up from 59.4% last week and no cut at 29.7% down from 40.6% last week
- In M&A news, BlackRock to buy HPS for approximately $12bln in an all stock transaction & Coterra Energy to use proceeds from todays 2-pt deal to fund the Franklin Mountain Energy & Avant Natural Resources acquisitions
2024 HIGH GRADE ISSUANCE - 12/02 WEEK, DECEMBER & 2024 ESTIMATES
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| 12/02 WK | LO EST | AVE EST | HI EST | ACTUAL | DEC | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $25.0B | $27.0B | $30.0B | $8,050 | EX-SSA | $25.0B | $40.0B | $50.0B | $8,050 | EX-SSA | $1,490,258 | |||
| OVERALL | $30.0B | $32.5B | $35.0B | $8,050 | OVERALL | $30.0B | $42.5B | $55.0B | $8,050 | OVERALL | $1,861,773 |
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2024 HIGH GRADE ISSUANCE - 12/3 CALENDAR
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA (FAB) | SAMMON | 29 | NR/BBB+ | CITI | +125 A |
| TBA (M&A) | CTRA | 29 | BAA2/BBB | JPM | +150 A |
| TBA (M&A) | CTRA | 34 | BAA2/BBB | JPM | +180 A |
| TBA (SUB) | CVS | 55 | BAA3/BB+ | BARC | 7.375-7.50 |
| TBA (SUB) | CVS | 54 | BAA3/BB+ | BARC | 7.25-7.375 |
| TBA (FAB) | RGA | 31 | A1/AA+ | JPM | +115 A |
| 300 (WNG/FMB) | ETR | 34 | BAA2/BBB+ | MS | +145 A |
| TBA | AEP | 35 | BAA1/BBB+/A- | BMO | +125-130 |
| AMT | ISSUER | MAT | RATINGS | MGR |
| TBA | CNQCN | 29 | BAA1/BBB- | BOA |
| TBA | CNQCN | 34 | BAA1/BBB- | BOA |
| TBA (FRN) | AVOL | 28 | BAA3/BBB- | JPM |
| TBA | AVOL | 28 | BAA3/BBB- | JPM |
| TBA | AVOL | 30 | BAA3/BBB- | JPM |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 2-Dec | GRUMA SAB | NR/BBB | BBVA/BOA/JPM/SCOT | 2-Dec | 2-PT 144A REG S DEAL |
| 2-Dec | ATLAS WAREHOUSE | BAA3/BBB- | BNP/BARC/JPM/MS | 2-Dec | SR UNSECURED DEAL |
| 3-Dec | FNB CORP | BOA/MS | 3-Dec | SEC REGISTERED DEAL | |
| 3-Dec | TAPESTRY INC | BAA2/BBB | BOA/MS/JPM | 3-Dec | 2-PT SEC REGISTERED DEAL |
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