[MIDDAY UPDATE:] More Banks
- 3 ex-SSA borrowers raised $7.9bln yesterday
- 3 borrowers announced deals overnight. Mitsubishi HC announced 5.25yr notes, Woori Bank announced perpnc5 AT1 MTNs and GreenSaif Pipeline announced a 2-pt 12yr & 18yr offering
- 3 additional ex-SSA borrowers announced deals this morning:
- Morgan Stanley: 4-pt (4nc3 F-T-F and/or FRN, 6nc5 & 11nc10 F-T-Fs)
- BlackRock Funding: 3-pt (3yr, long 10yr & long 30yr)
- State Street Bank: $1,000 par perpnc5 pfd
- Hong Kong SAR announced an SSA deal as well: $1bln 3yr "green" notes +12
- The IBRD deal announced yesterday (2-pt (3yr & 7yr "sustainability development" FRN tap)) is set to price today
- The three major indices are mixed with the Dow up 82pts (+0.20%), while tech continues to weigh on the S&P and Nasdaq, down (-1.20%) and (-2.40%) respectively
- Treasury yields are higher, with the benchmark 10yr note now yielding 4.182% (+2bp), while the long bond is yielding 4.389%, 2bp higher, and the 2yr note yielding 4.467%, 3bp higher.
- Corporate spreads are unchanged again with the average high grade bond trading 92bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a rate cut in September at 93.5%, up from 69.7% last week.
- In M&A news, EssilorLuxottica has agreed to acquire streetwear brand Supreme for $1.5bln in cash, Allianz has agreed to acquire Income Insurance for $1.6bn, and BlackRock is using proceeds from todays 3-pt deal to fund Preqin acquisition
- June Housing data came in better than expected. Starts 1.353m vs 1.3m expected & Permits 1.446m vs 1.4m expected
- Industrial Production also came in better than expected, up 0.6% in June vs estimates of 0.3%
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2024 HIGH GRADE ISSUANCE - 07/15 WEEK, JULY & 2024 ESTIMATES
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| 07/15 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 | $30.0B | $35.0B | $50.0B | $26,600 | EX-SSA | $80.0B | $85.0B | $95.0B | $50,200 | EX-SSA | $1.100B | $1.275B | $1.350B | $933,659 |
| OVERALL | $40.0B | $45.0B | $60.0B | $26,600 | OVERALL | $90.0B | $100.0B | $110.0B | $67,700 | OVERALL | $1.350B | $1.420B | $1.550B | $1,193,509 |
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2024 HIGH GRADE ISSUANCE - 2023 VS 2024 COMPARISON
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| 16-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 | 8750 | 1900 | 260525 | 274370 | -5% | ||
| UTL | 0 | 0 | 600 | 600 | 400 | 79200 | 74390 | 6% | ||
| FIG | 0 | 2750 | 19400 | 22150 | 20975 | 308300 | 202050 | 53% | ||
| Y(I) | 350 | 1000 | 0 | 1350 | 1500 | 78184 | 42350 | 85% | ||
| Y(F) | 5000 | 8500 | 3850 | 17350 | 18400 | 192320 | 157000 | 22% | ||
| Y(U) | 0 | 0 | 0 | 0 | 500 | 15130 | 10000 | 51% | ||
| SSA | 7500 | 10000 | 0 | 17500 | 0 | 259850 | 224700 | 16% | ||
| EX-SSA | 5350 | 18250 | 0 | 0 | 0 | 50200 | 43675 | 933659 | 760160 | 22.8% |
| OVERALL | 12850 | 28250 | 26600 | 0 | 0 | 67700 | 57875 | 1193509 | 984860 | 21.2% |
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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 |
| 16-Jul | GREENSAIF | A1/NR | JPM/SCB | 16-Jul | 144A REG S DEAL |
| 16-Jul | BLACKROCK | AA3/AA- | BOA/JPM/MS/WFS | 16-Jul | SEC REGISTERED DEAL |
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2024 HIGH GRADE ISSUANCE - 07/16 PRICINGS
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ISSUE | RATINGS | MGRS | AMT | CALL | CPN | MAT | SPRD | TYPE | |
| 07/16 | GOLDMAN SACHS GROUP | A2/BBB+ | GS | 2500 | NC5 | 5.049 | 6YR | +97 | F |
| 07/16 | GOLDMAN SACHS GROUP | A2/BBB+ | GS | 3000 | NC10 | 5.330 | 11YR | +117 | F |
| 07/16 | WELLS FARGO | BAA2/BB+ | WFS | 2000 | NC5 | 6.850 | PERP | 6.85 | F |
| 07/16 | OAKTREE STRATEGIC CREDIT FUNDING | BAA3/NR | BARC/JPM/MS/SMBC/WFS | 400 | T+40 | 6.500 | 5YR | +255 | F |
| 3/4 | 7900 | 3/4 | 7900 | . |
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