[MIDDAY UPDATE:] Monday Rush Before the Fed
- There was 1 deal announced overnight: Banco Santander SA announced perpnc10 AT1 preferred notes
- 9 ex-SSA borrowers announced deals this morning:
- Honeywell: 4-pt (3yr, long 5yr, long 7yr & 5.00% '35 tap)
- L3Harris: 30yr notes
- Mercedes Finance: 5-pt (2yr fixed and/or FRN, 3yr, 5yr & 10yr)
- Chubb: 2-pt (5yr & 10yr tap)
- Consumers Energy: $500m Long 5yr FMBs
- Moody's: 10yr notes
- Ryder System: $300m 5yr notes
- DTE Energy: 3yr notes
- Eastman Chemical: 5yr notes
- Valley National Bancorp announced a $100m non-countable $25par perp preferred note deal
- The three major indices are all higher with the Dow up 41 pts (+0.10%), the S&P up (+0.51%) and Nasdaq up (+0.94%)
- Treasury yields are mostly lower, with the benchmark 10yr note now yielding 4.172% (-2bps), while the long bond is yielding 4.421%, 3bps lower, and the 2yr note yielding 4.389% (UNCH)
- Corporate spreads are unchanged with the average high grade bond trading 95bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a 25bp rate cut in September at 89.6%, up from 88.5% last week while a 50bp cut is at 10.1% vs. 3.8% last week.
- In M&A news, Sixth Street to take Enstar private for $5.1bln
- 7-Eleven is holding investor calls today with a 144A/Reg S senior unsecured notes offering potentially to follow & Netflix is also holding calls today with a senior unsecured SEC Registered bond transaction potentially to follow
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2024 HIGH GRADE ISSUANCE - 07/29 WEEK, JULY & 2024 ESTIMATES
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| 7/29 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 | $20.0B | $27.0B | $35.0B | $0 | EX-SSA | $103,204 | EX-SSA | $1.100B | $1.275B | $1.350B | $986,663 | |||
| OVERALL | $30.0B | $35.0B | $40.0B | $0 | OVERALL | $127,004 | OVERALL | $1.350B | $1.420B | $1.550B | $1,252,813 |
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2024 HIGH GRADE ISSUANCE - 2023 VS 2024 COMPARISON
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| 26-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 | 2750 | 21454 | 30204 | 13100 | 281979 | 285570 | -1% | |
| UTL | 0 | 0 | 600 | 0 | 600 | 400 | 79200 | 74390 | 6% | |
| FIG | 0 | 2750 | 36850 | 8250 | 47850 | 35325 | 334000 | 216400 | 54% | |
| Y(I) | 350 | 1000 | 3000 | 0 | 4350 | 1900 | 81184 | 42750 | 90% | |
| Y(F) | 5000 | 8500 | 4900 | 1300 | 19700 | 18400 | 194670 | 157000 | 24% | |
| Y(U) | 0 | 0 | 0 | 500 | 500 | 1500 | 15630 | 11000 | 42% | |
| SSA | 7500 | 10000 | 3700 | 2600 | 23800 | 0 | 266150 | 225700 | 18% | |
| EX-SSA | 5350 | 18250 | 48100 | 31504 | 0 | 103204 | 70625 | 986663 | 787110 | 25.4% |
| OVERALL | 12850 | 28250 | 51800 | 34104 | 0 | 127004 | 85825 | 1252813 | 1012810 | 23.7% |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 25-Jul | INDEPENDENT BANK | NR/NR/BBB | KBW/STFL/USB | 25-Jul | |
| 26-Jul | 7-ELEVEN | BAA2/A | BOA/C/SMBC | 29-Jul | 144A REG S 2-PT DEAL |
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