[MIDDAY UPDATE:] Still Going
- 10 ex-SSA borrowers and 3 SSA borrowers announced deals today (see table below)
- Stocks are higher: DOW (UNCH), S&P500 (+0.47%) and NASDAQ (+1.23%)
- Treasury yields are mixed, with the benchmark 10yr yielding 3.751% (UNCH), the long bond yielding 4.051% (-1bp), and the 2yr yielding 3.764% (UNCH)
- Corporate spreads widened 1bp with the average high grade bond trading 99bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a 25bp rate cut in September at 57% down from 66% last week, with a 50bp cut at 43% up 34% last week
- ADP Payrolls rose just 99k in August vs expectations of 145k
- Initial Jobless Claims last week came in at 227k vs 230k
- ISM Services Index was 51.5 in August vs expectations of 51.4
- In M&A news, Verizon to acquire Frontier Communications for $9.6bln and US regulators are preparing to block Nippon Steel-US Steel merger
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2024 HIGH GRADE ISSUANCE - 09/03 WEEK, AUGUST & 2024 ESTIMATES
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| 09/02 WK | LO EST | AVE EST | HI EST | ACTUAL | SEP | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $71,925 | EX-SSA | $125.0B | $137.0B | $146.0B | $71,925 | EX-SSA | $1.275B | $1.350B | $1,187,883 | ||||
| OVERALL | $81,975 | OVERALL | $140.0B | $150.0B | $165.0B | $81,975 | OVERALL | $1.550B | $1,492,233 |
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2024 HIGH GRADE ISSUANCE - 09/05 CALENDAR
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA (REIT) | VTR | 35 | BAA1/BBB+ | WFS | +155-160 |
| TBA (SUB) | CRBG | 54 | BAA3/BBB- | BNP | 6.875 A |
| TBA (FAB) | NWMLIC | 27 | AAA/AA+ | JPM | +70-75 |
| TBA | GWW | 34 | A2/A+ | BOA | +100 A |
| TBA | MCK | 29 | A3/BBB+ | CITI | +95-100 |
| 300 (REIT) | COLD | 34 | BAA3/BBB- | CITI | +200 A |
| 500 (WNG) | GCRED | 29 | BAA3/BBB- | SMBC | +270 A |
| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| TBA | WPLAU | 34 | BAA1/BBB+ | JPM | +165 A |
| TBA | WPLAU | 54 | BAA1/BBB+ | JPM | +185 A |
| TBA (SUB) | UBS | PNC30 | BAA3/BB | UBS | 7.25 A |
| 300 | JHG | 34 | BAA2/BBB+ | CITI | +200 A |
| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| 3000 | CADES | 27 | AA2/AA- | BNP | SMS+42 |
| 1250 | SEK | 27 | AA1/AA+ | BMO | SMS+40 |
| TBA (SUSTAIN) | IDAWBG | 30 | AAA/AAA | JPM | SMS+52 |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 7-Aug | FARMERS INSURANCE | BAA3/BBB+ | BOA/C/JPM/WFS | 7-Aug | 40NC30 SURPLUS NOTES |
| 29-Aug | KOREA HOUSING | AA2/AA | CA/C/HSBC/JPM/SCB | 4-Sep | 3-5YR 144A REG S DEAL |
| 3-Sep | IBK | AA2/AA- | ANZ/CA//HSBC/MIZ/MUFG | 5-Sep | SOCIAL BOND DEAL |
| 3-Sep | JANUS HENDERSON | BAA2/BBB+ | BOA/C/MS | 4-Sep | 144A REG S 10YR DEAL |
| 3-Sep | GOLUB CAPITAL | BAA3/BBB- | BNP/RBC/SMBC/WFS | 4-Sep | CAPITAL MKTS DEAL |
| 3-Sep | AMERICOLD REALTY | BAA3/BBB | BOA/C/JPM | 4-Sep |
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