[MIDDAY UPDATE:] Reshuffle & Rally
- There was one deal announced overnight - Korea Hydro & Nuclear Power 5yr notes
- 5 ex-SSA borrowers announced deals this morning:
- American Express: 3-pt (4nc3 F-T-F and/or FRN & 11nc10 F-T-F)
- Ally Financial: 11nc10 F-T-F notes
- Nationwide Building Society: 5yr Senior Preferred
- Kinder Morgan: 2-pt (5yr & 30yr)
- United Airlines: 2-pt (12.5yr EETC Pass-thru Certificates)
- Additionally, Regions Financial announced a not countable $25par preferred perp
- The three major indices are mixed with the Dow down 28pts (-0.08%), the S&P up (+0.54%) and Nasdaq up (+1.03%) following President Biden´s announcement to withdraw from the race
- Treasury yields are mixed, with the benchmark 10yr note now yielding 4.215% (-2bps), while the long bond is yielding 4.417%, 3bp lower, and the 2yr note yielding 4.517%, 1bp higher.
- Corporate spreads are unchanged with the average high grade bond trading 93bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a rate cut in September at 93.6%, up from 91.9% last week.
- The Chicago Fed National Activity Index rose to +0.05 in June vs expectations of -0.09
- In M&A news, Woodside Energy Group has agreed to acquire Tellurian for $900m in an all-cash deal
- Occidental Petroleum is holding investor calls today ahead of what is expected to be a fairly large multi-tranche offering to help fund its $12bln acquisition of CrownRock, which could come to market as early as tomorrow.
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2024 HIGH GRADE ISSUANCE - 07/15 WEEK, JULY & 2024 ESTIMATES
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| 7/22 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 | $30.0B | $42.5B | $0 | EX-SSA | $80.0B | $85.0B | $95.0B | $71,700 | EX-SSA | $1.100B | $1.275B | $1.350B | $955,159 |
| OVERALL | $27.5B | $35.0B | $55.0B | $0 | OVERALL | $90.0B | $100.0B | $110.0B | $92,900 | OVERALL | $1.350B | $1.420B | $1.550B | $1,218,709 |
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2024 HIGH GRADE ISSUANCE - 2023 VS 2024 COMPARISON
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| 19-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 | 5650 | 260525 | 278120 | -6% | ||
| UTL | 0 | 0 | 600 | 600 | 400 | 79200 | 74390 | 6% | ||
| FIG | 0 | 2750 | 36850 | 39600 | 28125 | 325750 | 209200 | 56% | ||
| Y(I) | 350 | 1000 | 3000 | 4350 | 1900 | 81184 | 42750 | 90% | ||
| Y(F) | 5000 | 8500 | 4900 | 18400 | 18400 | 193370 | 157000 | 23% | ||
| Y(U) | 0 | 0 | 0 | 0 | 500 | 15130 | 10000 | 51% | ||
| SSA | 7500 | 10000 | 0 | 21200 | 0 | 263550 | 225700 | 17% | ||
| EX-SSA | 5350 | 18250 | 3700 | 0 | 0 | 71700 | 54975 | 955159 | 771460 | 23.8% |
| OVERALL | 12850 | 28250 | 48100 | 0 | 0 | 92900 | 70175 | 1218709 | 997160 | 22.2% |
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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 |
| 19-Jul | OCCIDENTAL PETE | BAA3/BB+ | BOA/JPM/MUFG/SMBC | 22-Jul | MULTI-TRANCHE DEAL |
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2024 HIGH GRADE ISSUANCE - 07/17 PRICINGS
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ISSUE | RATINGS | MGRS | AMT | CALL | CPN | MAT | SPRD | TYPE | |
| 07/17 | INTL BANK FOR RECONSTRUCTION | AAA/AAA | HSBC/SCOT/WFS | 2000 | NC | SOFR+28 | 3YR | FRN | SU |
| 07/17 | INTL BANK FOR RECONSTRUCTION | AAA/AAA | HSBC/SCOT/WFS | 700 | NC | SOFR+37 | 7YR | FRN | SU |
| 07/17 | HONG KONG SAR | NR/AA+ | CA/C/HSBC/JPM/+ | 1000 | NC | 4.250 | 3YR | +12 | SV |
| 07/17 | MORGAN STANLEY | AA3/A+ | MS | 1000 | NC3 | SOFR+94 | 4YR | FRN | F |
| 07/17 | MORGAN STANLEY | AA3/A+ | MS | 1500 | NC3 | 4.968 | 4YR | +77 | F |
| 07/17 | MORGAN STANLEY | A1/A- | MS | 2250 | NC5 | 5.042 | 6YR | +97 | F |
| 07/17 | MORGAN STANLEY | A1/A- | MS | 3250 | NC10 | 5.320 | 11YR | +117 | F |
| 07/17 | BLACKROCK FUNDING | AA3/AA- | BOA/JPM/MS/WFS | 800 | T+10 | 4.600 | 3YR | +40 | F |
| 07/17 | BLACKROCK FUNDING | AA3/AA- | BOA/JPM/MS/WFS | 500 | T+12.5 | 4.900 | 10YR | +80 | F |
| 07/17 | BLACKROCK FUNDING | AA3/AA- | BOA/JPM/MS/WFS | 1200 | T+15 | 5.350 | 30YR | +100 | F |
| 07/17 | STATE STREET BANK | BAA1/BBB | GS/UBS | 850 | NC5 | 6.700 | PERP | 6.70 | F |
| 07/17 | WOORI BANK | NR/BBB- | BOA/C/HSBC/MUFG/SG/WFS | 550 | NC5 | 6.375 | PERP | 6.375 | YF |
| 07/17 | MITSUBISHI HC FINANCE AMERICA | A3/A- | BOA/BARC/C/JPM/MS | 500 | T+20 | 5.150 | 5.25YR | +110 | YF |
| 07/17 | GREENSAIF PIPELINE | A1/NR | BOA/C/CA/JPM/MIZ/SCB/SG/+ | 1400 | A/L | 5.852 | 12YR | +170 | YI |
| 07/17 | GREENSAIF PIPELINE | A1/NR | BOA/C/CA/JPM/MIZ/SCB/SG/+ | 1600 | A/L | 6.103 | 18YR | +195 | YI |
| 6/12 | 15400 | 8/15 | 19100 | . |
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