USD MTNs: ZC supply slows; Jefferies CMS; Callables

ZC supply slows; Jefferies CMS; Callables

Zero-coupon callable and Formosa activity slowed down in the past week with only Bank of Nova Scotia selling a $40m 15y NC6 zero coupon callable (non-Formosa).

Elsewhere, Jefferies launched a long dated 20y NC3 fixed to CMS floating note that pays 7% to Jan 2026, then pays ICE SOFR5y +2%, capped at 8% and floored at zero. In simple callables, Credit Agricole sold a $50m 5y NC2 that pays 5.25% while Standard Chartered also sold a similar $50m 5y NC2 that pays 5.48%.

Recent structured note activity

Zero-coupon callables and Formosas:

• Bank of Nova Scotia sold a $40m 15y NC6 zero coupon callable (non-Formosa). The SMTN matures Jan 2038, is callable annually from Jan 2029 and has an estimated IRR of 5.50%. Self-led and announced Jan 10.

CMS-linked:

• Jefferies is working on a self-led fixed to floating note maturing Jan 2043 NC3 that pays 7% to Jan 2026, then pays ICE SOFR5y +2%, capped at 8% and floored at zero. Domestic MTN.  

Fixed, floating and step-up callables:

• Bank of America is working on a self-led $25m fixed callable maturing Jan 2028 NC2 that pays 5.25%. EMTN.

   

• Bank of America is working on a self-led step-up callable maturing Jan 2030 NC1 that pays 5.25% to Jan 2025, 5.65% to Jan 2027, 6.25% to Jan 2029 and 7% thereafter. Domestic MTN.

   

• Bank of Montreal is working on a self-led fixed callable maturing Jan 2026 NC6m that pays 5.25%. Domestic MTN.

   

  Bank of Montreal is working on a self-led fixed callable maturing Jan 2028 NC1 that pays 5.4%. Domestic MTN.

   

  Bank of Montreal is working on a self-led fixed callable maturing Feb 2026 NC6m that pays 5%. Domestic MTN.

   

• Barclays is working on a self-led fixed callable maturing Jan 2028 NC1 that pays 4%. EMTN.

   

• CIBC is working on a self-led fixed callable maturing Jan 2026 NC1 that pays 5.15%. Domestic MTN.

   

  CIBC is working on a self-led fixed callable maturing Jul 2024 NC1 that pays 5.05%. Domestic MTN.

   

• Citigroup is working on a self-led fixed callable maturing Jan 2028 NC1 that pays 4.75%. EMTN.

   

  Citigroup is working on a self-led fixed callable maturing Jan 2025 NC1 that pays 4.3%. EMTN.

   

• Credit Agricole is working on a self-led $50m fixed callable maturing Jan 2028 NC2 that pays 5.25%. EMTN.

   

• IBRD is working on a $15m fixed callable via MS  maturing Jan 2038 NC4 that pays 4.73%. EMTN.

   

• Royal Bank of Canada is working on a self-led fixed callable maturing Jan 2028 NC2 that pays 5%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Jul 2025 NC1 that pays 5%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Jan 2033 NC5 that pays 5.2%. GMTN.

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Jan 2025 NC1 that pays 5.1%. GMTN.

   

• Societe Generale is working on a self-led fixed callable maturing Jan 2026 NC2 that pays 4.55%. EMTN.

   

  Societe Generale is working on a self-led fixed callable maturing Jan 2026 NC2 that pays 4.8%. Credit linked. EMTN.

   

  Societe Generale is working on a self-led fixed callable maturing Jan 2026 NC1 that pays 4.88%. EMTN.

   

• Standard Chartered is working on a self-led $50m fixed callable maturing Jan 2028 NC2 that pays 5.48%. Domestic MTN.

   

• Toronto Dominion is working on a self-led fixed callable maturing Jul 2025 NC1 that pays 5.25%. GMTN.

   

• UBS is working on a floating callable maturing Jan 2024 NC6m that pays O/N SOFR flat. EMTN.

Extendibles:

• Bank of Montreal is working on a self-led USD extendible with initial maturity Jan 2024 and then extendible to Jan 2028 that pays 5.75% to Jan 2024, then pays 5.85%, 6%, 6.15% and 6.35%, stepping up annually. Domestic MTN.

   

  Bank of Montreal is working on a self-led CAD extendible with initial maturity Jan 2024 and then extendible to Jan 2028 that pays 5.4% to Jan 2024, then pays 5.5%, 5.6%, 5.85% and 6%, stepping up annually. Canadian.