USD New Issues: 2023 start sees expected issuer stampede

Highway
;
The traditional start to the new year is unfolding with a bevy of issuance as expected. Leading off the supply are several Yankee bank issuers.

Start a free trial to read this article

Join today to access all  Total Derivatives content and breaking news. Already a subscriber? Please Log In to continue reading.

Or contact our Sales Team to discuss subscription options.

Get in Touch
Blurred image of Total Derivatives article content

 

 

 

  • 2023 start sees expected issuer stampede

  • New issues

     

    2023 start sees expected issuer stampede  

    The traditional start to the new year is unfolding quickly with a bevy of issuers announcing this morning - as to be expected, sources say. Leading off the supply are several Yankee bank issuers including SMFG, Societe Generale, CBA, TD Bank and UBS along with life insurer MetLife - all coming with multi-tranches. In addition, many active corporate issuers have announced, led by frequent issuers including John Deere, Duke Energy and Caterpillar Financial.

     

    For the shortened week, surveys expect around $35bn to $40bn - likely compressed into today, tomorrow and Thursday before non-farm payrolls on Friday.

     

    As for forecast for total issuance (ex-SSA) for IG, analysts see around an average of $1.23trn with a relatively tight range in the sample of estimates, sources note. This would be a slight increase to the total output as was seen in 2022 (roughly a +4% increase yoy). 

     

     

    New issues:

     

    • SMFG is working on a $TBA 5-part (3y fixed, 3y FRN, 5y, 7y and 10y). Self-led. A1/A-. Price talk +150bps. SOFR equivalent. +180bps, +205bps and +220bps area.

       

    • Societe Generale plans a $TBA 5-part SNP (4y NC3 FRN, 4y NC3 fixed to fixed, 6y NC5 fixed to fixed, 11y NC10 fixed to fixed, 30y sub fixed). Self-led. Baa2/BBB/A- for first 4 tranches and Baa3/BBB-/BBB for the 30y. Price talk SOFR equivalent, +250bps, +275bps, +315bps, +375bps area.

       

    • Commonwealth Bank of Australia plans a $TBA 2y fixed and 2y FRN. Leads CBA, HSBC, JPM, WFS. Aa3/AA-/A+. Price talk +90bps and SOFR equivalent.

       

    • UBS Group plans a $TBA 2-part (4y NC3 and 11y NC10). Self-led. A-/A+. Price talk +180bps and +250bp area.   

       

    • TD Bank is working on a $TBA 3-part (3y fixed, 3y FRN and 5y). Self-led. A1/A. Price talk +115bps, SOFR equivalent and +145bps area.

       

    • MetLife is working on a $TBA 4-part FA-backed (3y, 3y FRN, 5y and 31y). Leads BofA, DB, HSBC, JPM and MS.Aa3/AA-/AA- for first three tranches and A3/A-/A- for 31y. Price talk +100bps, SOFR equivalent, +130bps and +170bps area.

       

    • Santander UK plans a $TBA 6y NC5 fixed to FRN. Self-led. Baa1/BBB/A. Price talk +285bps area.  

       

    • Enterprise Products Operating plans a $TBA 2-part (3y and 10y). Leads BofA, JPM, MS and RBC. Baa1/BBB+/BBB+. Price talk +110bps and +180bps area.

       

    • John Deere Capital is working on a $TBA 3-part (3y fixed, 3y FRN and 5y). Leads DB, BofA, GS, RBC. A2/A. Price talk +80bps, SOFR equivalent and +100/105bps area.

       

    • Duke Energy Carolinas plans a $TBA 2-part (10y and 30y). Leads MUFG, CS, JPM, Mizuho, RBCCM, WFS. Aa3/A. Price talk +140bps and +165bps area.  

       

    • Caterpillar Financial plans a $TBA 2-part (3y fixed and 3y FRN). Leads Barclays, JPM, SocGen. A2/A/A. Price talk +80bps and SOFR equivalent.  

       

    • Posco is working on a $TBA 3-part (3y, 5y and/or 10y). Leads BNP Paribas, Citigroup, Credit Agricole, HSBC, Standard Chartered. Baa1/A-.     

       

    • Entergy Arkansas plans a $425m (no grow) 10y FMB fixed. Leads JPM, Mizuho, SMBC, Steph and USB. A2/A. Price talk +160bps area.

       

    • Connecticut Power and Light is working on a $500m (no grow) 30y FMB fixed. Leads MUFG, Barclays, Citi, GS and TD. A1/A+/A+. Price talk +155bps area.  

       

    • EIB plans a $TBA 5y benchmark. Leads Barclays, Citi, TD. Aaa/AAA/AAA. Price talk SOFR MS +41bps. Expected to price tomorrow.  

       

    • Targa Resources is working on a $TBA 2-part (long 10y fixed and 30y fixed). Leads MUFG, RBCCM, TD and TSI. Baa3/BBB-/BBB-. Price talk +260bps and +300bps area.   

       

    • Mexico plans a $TBA 2-part (5y and 12y). Leads BBVA, BNPP, BofA and JPM. Baa2/BBB/BBB-. Price talk +195bps and +295bps area.  

       

    • Consumers Energy is working on a $400m 5y FMB fixed. Leads GS, MS, RBCCM, WFC. A1/A/A+. Price talk +95bps area.

       

    • Commonwealth Edison plans a $TBA 2-part (10y and 30y). Leads USB, BofA and BNPP. A1/A/A. Price talk +145bps and +170bps area.  

       

    • Public Service Co. plans a $475m 10y. Leads WFS, CIBC, CACIB and TSI. Baa1/A-/A-. Price talk +170bps area.

       

    • Protective Life is working on a $300m FA backed fixed. Leads Mizuho, MS and PNC. A1/AA-/AA-. Price talk +140/145bps area.  

       

    • Oklahoma Gas and Electric plans a $425m (no grow) 10y. Leads MUFG, JPM and USB. A3/A-/A. Price talk +180bps area.  

       

    • Ford Motor Credit is working on a $TBA 3-part (3y fixe, 3y FRN and 7y). Leads DB, BofA, HSBC, Mizuho and RBCCM. Ba2/BB+/BB+. Price talk 7.375%, SOFR equivalent and 7.75% area.  

       

    • Hong Kong SAR has mandated Credit Agricole, HSBC, Citigroup and JPM for a series of investor meetings ahead of USD and EUR denominated offerings. It also plans a CNH denominated issuance.  

    • Related Topics

    Most Popular