USD MTNs: 2022 ZCs see $14.5bn total; Half in January

2022 ZCs see $14.5bn total; Half in January

Total ZC callable issuance for the year (Formosa and non-Formosa) came in at $14.5bn.

On the Formosa side, ZC callable Formosas for the year saw $11bn – with the vast majority coming in the first half of the year. In terms of maturity, $4.2bn were issued in 30y, $2.4bn in 40y and $3.7bn in maturities between 31-39y, while $730m came in 10y to 20y, according to our calculations.

Non-Formosa ZC callables saw a total of  $3.5bn for the year, with $1.53bn in 30y maturity. 

Meanwhile fixed coupon callable Formosas saw just over $1bn price this year, with the vast majority issued in the 10y maturity.

As for the monthly breakdown of all ZC callable supply in 2022 (both Formosa and non-Formosa), nearly half of the total volume came in the month of January:

As for this week, Barclays sold a $20m 10y NC4 floating callable Formosa this past week, that pays ICE SOFR 5y +2% via leads E Sun and Sinopac.

Recent structured note activity

Zero-coupon callables and Formosas:

• Barclays sold a $20m 10y NC4 floating callable Formosa. The EMTN matures Jan 2033 and is callable annually starting Jan 2027 and pays ICE SOFR 5y +2%. Leads E Sun and Sinopac. Announced Dec 15.

CMS-linked:

• Goldman Sachs is working on a self-led $5m CMS linked note maturing Jan 2028 NC1 that pays 9% for the first two years and then pays SOFR ICE 30y, floored at zero. EMTN.

Step-up and fixed callables:

• Bank of Montreal is working on a self-led fixed callable maturing Dec 2026 NC1 that pays 5.4%. Domestic MTN.

   

  Bank of Montreal is working on a self-led fixed callable maturing Dec 2024 NC6m that pays 5.25%. Domestic MTN.

   

  Bank of Montreal is working on a self-led fixed callable maturing Dec 2027 NC1 that pays 5.5%. Domestic MTN.

   

• CIBC is working on a self-led fixed callable maturing Jan 2024 NC1 that pays 5.15%. GMTN.

   

  CIBC is working on a self-led fixed callable maturing Dec 2027 NC2 that pays 5.25%. GMTN.

   

• Citigroup is working on a self-led fixed callable maturing Dec 2027 NC2 that pays 5.52%. Domestic MTN.

   

  Citigroup is working on a self-led $10m fixed callable maturing Dec 2027 NC2 that pays 5.25%. Domestic MTN.

   

  Citigroup is working on a self-led fixed callable maturing Dec 2025 NC1 that pays 5.125%. Domestic MTN.

   

  Citigroup is working on a self-led fixed callable maturing Dec 2024 NC1 that pays 5%. Domestic MTN.

   

• Goldman Sachs is working on a self-led fixed callable maturing Dec 2027 NC1 that pays 5.625%. Domestic MTN.

   

  Goldman Sachs is working on a self-led fixed callable maturing Dec 2024 NC6m that pays 5.375%. Domestic MTN.

   

• ING Bank is working on a $10m fixed callable maturing Dec 2032 NC3 that pays 5.5%. EMTN.

   

• JP Morgan is working on a self-led fixed callable maturing Jan 2024 NC6m that pays 5%. Domestic MTN.

   

  JP Morgan is working on a self-led fixed callable maturing Dec 2026 NC1 that pays 5.15%. Domestic MTN.

   

  JP Morgan is working on a self-led fixed callable maturing Dec 2027 NC2 that pays 5.2%. Domestic MTN.

   

  JP Morgan is working on a self-led fixed callable maturing Dec 2023 NC6m that pays 5%. Domestic MTN.

   

• Morgan Stanley is working on a self-led fixed callable maturing Dec 2027 NC1 that pays 4.85%. Domestic MTN.

   

  Morgan Stanley is working on a self-led fixed callable maturing Dec 2032 NC3 that pays 5.1%. Domestic MTN.

   

  Morgan Stanley is working on a self-led fixed callable maturing Dec 2037 NC2 that pays 5.5%. Domestic MTN.

   

• National Bank of Canada is working on a $10m fixed callable via Daiwa maturing Dec 2032 NC3 that pays 5.75%. Putable Jun 2023. EMTN.

   

• Royal Bank of Canada is working on a self-led fixed callable maturing Dec 2027 NC3 that pays 5.15%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Dec 2024 NC1 that pays 5.1%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Dec 2023 NC6m that pays 5.05%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Jun 2024 NC1 that pays 5.2%. GMTN.

   

• UBS is working on a self-led fixed callable maturing Jan 2024 NC6m that pays 4.67%. EMTN.

   

• Dow Chemical is working on a fixed callable via Insperx maturing Dec 2032 NC6m that pays 5.3%. Domestic MTN.

   

  Dow Chemical is working on a fixed callable via Insperx maturing Dec 2027 NC6m that pays 4.95%. Domestic MTN.  

   

  Dow Chemical is working on a fixed callable via Insperx maturing Dec 2052 NC6m that pays 5.75%. Domestic MTN.  

   

• Ally Financial is working on a fixed callable via Insperx maturing Dec 2025 NC6m that pays 5.95%. Domestic MTN.  

    

  Ally Financial is working on a fixed callable via Insperx maturing Dec 2032 NC6m that pays 6.35%. Domestic MTN.  

Extendibles:

• Bank of Montreal is working on a self-led USD extendible with initial maturity Dec 2023 and then extendible to Dec 2025 that pays 5.25% to Dec 2023, then pays 5.5% and 5.75%, stepping up annually. Domestic MTN.

   

  Bank of Montreal is working on a self-led USD extendible with initial maturity Dec 2023 and then extendible to Dec 2025 that pays 5.5% to Dec 2023, then pays 5.75% and 6%, stepping up annually. Domestic MTN.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Dec 2023 and then extendible to Dec 2027 that pays 5.5%. Canadian.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Dec 2023 and then extendible to Dec 2029 that pays 5.5%. Canadian.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Dec 2023 and then extendible to Dec 2025 that pays 5.3%. Canadian.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Dec 2023 and then extendible to Dec 2025 that pays 5.1%. Canadian.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Dec 2023 and then extendible to Dec 2027 that pays 5.45%. Canadian.