[MIDDAY UPDATE:] Pre-inflation Push
- 10 ex-SSA issuers announced deals (see table below)
- 9 SSA deals were announced (6 will price tomorrow)
- 1 not countable covered deal was also announced
- Stocks: DOW (+143), S&P500 (-0.69%) and NASDAQ (-1.41%)
- Treasury yields are higher with the benchmark 10yr yielding 4.782% (+2bp), the long bond yielding 4.965% (+2bp), and the 2yr yielding 4.394% (+2bp)
- Corporate spreads are unchanged with the average high grade bond trading 83bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a 25bp rate cut in January at 2.7% down from 8.6% last week and no cut at 97.3% up from 91.4% last week
- In M&A news, Plains All American Pipeline to use proceeds from today's deal to fund $800m Ironwood Midstream Energy acquisition, J&J to acquire Intra-Cellular Therapeutics for $14.6bln and GSK to acquire IDRx for up to $1.15bln
- Inflation data will be a key theme this week, with PPI scheduled for tomorrow and CPI on Wednesday
2024 HIGH GRADE ISSUANCE - 01/13 WEEK, JANUARY & 2025 ESTIMATES
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| 01/13 WK | LO EST | AVE EST | HI EST | ACTUAL | JAN | LO EST | AVE EST | HI EST | ACTUAL | 2025 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $30.0B | $40.0B | $50.0B | $0 | EX-SSA | $175.0B | $187.5B | $200.0B | $78,850 | EX-SSA | $1.350B | $1.650B | $1.900B | $78,850 |
| OVERALL | $45.0B | $60.0B | $65.0B | $0 | OVERALL | $195.0B | $215.0B | $225.0B | $144,315 | OVERALL | $1.550B | $1.900B | $2.100B | $144,315 |
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2024 HIGH GRADE ISSUANCE - 01/13 CALENDAR
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA | BRKHEC | 35 | BAA1/A- | BOA | +130 A |
| TBA | BRKHEC | 55 | BAA1/A- | BOA | +150 A |
| TBA | ARESSI | 32 | BAA3/BBB- | BOA | +200 A |
| TBA | DE | 35 | A1/A | BOA | +90 A |
| TBA | DE | 55 | A1/A | CITI | +105 A |
| 300 (FAB) | FG | 30 | NR/A- | JPM | +145 A |
| TBA | OTFINC | 28 | BAA3/BBB- | +215 A | |
| TBA | MU | 35 | BAA3/BBB- | MS | +130 A |
| TBA (M&A) | PAA | 35 | BAA2/BBB | JPM | +145 A |
| TBA | APODS | 32 | BAA3/BBB- | GS | +210 A |
| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA | STANLN | 29 | A3/BBB+ | SCB | +130 A |
| TBA | STANLN | 29 | A3/BBB+ | SCB | +170 A |
| TBA (FRN) | RABOBK | 28 | AA2/A+ | BOA | SOFR+EQ |
| TBA | RABOBK | 28 | AA2/A+ | BOA | +60 A |
| TBA | RABOBK | 33 | AA2/A+ | BOA | +125 A |
| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA (FRN/SOCIAL) | KHFC | 30 | AA2/AA | HSBC | SOFR+EQ |
| TBA (SOCIAL) | KHFC | 30 | AA2/AA | HSBC | +95 A |
| TBA (SUB) | AFRFIN | PERPNC5.25 | BAA3/NR | JPM | 8.00 A |
| TBA (FRN) | EBRD | 30 | AAA/AAA | BMO | SOFR+EQ |
| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA (COVERED) | CBA | 30 | AAA/NR | CBA | SMS+72 A |
SSA: 6 DEALS / 6 TRANCHES (PRICING 1/14)
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| 3000 (WNG) | KFW | 30 | AAA/AAA | BARC | SMS+43 A |
| TBA (SOCIAL) | IFC | 28 | AAA/AAA | BARC | SMS+33 A |
| 2000 | CADES | 30 | AA3/AA- | BARC | SMS+70 A |
| TBA (SOCIAL) | BNG | 30 | AAA/AAA | BOA | SMS+50 A |
| TBA | CAF | 30 | AA3/AA- | DB | SMS+90 A |
| TBA | BRCOL | 28 | AAA/AA+ | BMO | SMS+46 A |
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2025 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | PROPOSED DEAL |
| 8-Jan | HYUNDAI CAPITAL | A3/A- | BOA/ING/MIZ/SMBC/SG | 9-Jan | 3YR FXD AND/OR FRN |
| 9-Jan | NATIONAL LIFE GROUP | DB/JPM/TD | 10-Jan | DEBUT MTN DEAL | |
| 13-Jan | CITADEL LP | BAA2/BBB | BOA/GS/MS | 13-Jan | 144A REG S DEAL |
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