USD New Issues: FIGs underwhelm

Drought illiquidity 10 Jun 2021
Just $16bn in new IG deals (ex. SSA) managed to cross the finish line last week amid an underwhelming showing from FIG issuers.

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  • FIGs underwhelm
  • New issues
  • Recent issues

    Just $16bn in new IG deals (ex. SSA) managed to cross the finish line last week (versus expectations of $30-$35bn) as an underwhelming showing from FIG issuers coming out of earnings blackouts kept a cap on volumes.


    To be sure, out of the big banks just BofA and Morgan Stanley came tapped the market ($3bn and $6bn, respectively) compared to initial estimates of up to $25bn from FIG issuers.


    Week over week, IG corporate spreads narrowed 3bps to 129bps while high yield spreads widened 14bps to 435bps, according to the ICE BofA Masters Indexes.


    For the upcoming week, syndicate desks are looking for roughly $20-$25bn in new IG issuance with FIG issuance expected to remain light.


    New issues

    • Autozone is working on a 5y and 10y benchmarkmvia WFS, BofA, JPM and TSI. Baa1/BBB/BBB. Price talk: +115bps area, +150bps area.


    • IFC is working on a 3y FRN via BofA, BMO and WFS. Aaa/AAA. Price talk: SOFR + 28bps area.


    • State Street is working on a 3NC2 and 11NC10 benchmark via BofA, GS, MS and SIEWL. A1/A/AA-. Price talk: +90bps area, +160bps area.


    • Truist Financial plans USD 6y NC5 and 11y NC10 bonds at around Treasuries +155 and 185bps. Leads are Barclays, MS and TSI.


    • Procter & Gamble is preparing USD 3y, 5y and 10y bonds in the area of Treasuries +45, 55 and 75bps. Leads are Citi, GS and MS.


    • Keybank plans USD 3y and 10y bonds in the region of Treasuries +112.5 and 180bps. Leads are DB, JPM, Keybank and MS.


    • Cesars Entertainment is preparing a $1.25bn 7y NC3 secured note. Leads are Barclays, BofA, Citi, Citizens, CS, DB, GS, JPM, MQB, SMBC, TSI, USB and WFS.


    Recent issues

    • Jan 19: CAF priced a $1.5bn long 3y via BofA, Citi, DB and GS (B&D). Aa3/AA-/AA-. Swaps +125bps.


    • Jan 19: PNC Financial priced a $2.75bn 2-part ($1.25bn 4y NC3 fixed to FRN and $1.5bn 11y NC10). Leads Barclays, Citi, GS and PNC. +100bps and +168bps.


    • Jan 19: BFCM (Aa3/A+) priced a $1.25bn 3y fixed. Leads BNPP, Citi, GS and WFS. +118bps. It dropped plans for a 3y FRN.


    • Jan 19: CoE Development Bank priced a $1bn 5y Global. Leads are Barclays, BNPP, GS and RBC. Mid swaps +41bps.


    • Jan 19: Serbia (Baa2/BB+) priced a $1.75bn 2-part ($750m long 5y and $1bn 10y). Leads BNPP, BofA, Citi, DB (B&D) and JPM. +285bps and +340bps.


    • Jan 18: First Abu Dhabi Bank (Aa3/AA-) priced a $600m 5.25y. Leads Citi, ENBD, FAB, HSBC and StanChart (B&D). +105bps.


    • Jan 18: CADES priced a $4bn 3y Social bond at swaps +39bps. Leads are Barclays, GS, HSBC and SocGen.


    • Jan 18: OPEC Fund priced a $1bn 3y sustainability deal via CA-CIB, Citi, GS, Nomura and TD. AA/AA+. Launched at MS + 90bps.


    • Jan 18: JBIC (A1/A+) priced a $2.5bn 3y Global. Leads are Daiwa, Citi (B&D), GS and JPM. Launched at swaps +62bps.


    • Jan 17: Target priced a $1.65bn 2-part ($500m 10y and $1.15bn 30y). Leads Barclays, BofA and Citi. A2/A/A. Price talk +90bps and +115bps.


    • Jan 17: Morgan Stanley priced a $6bn 3-part ($1.5bn 4y NC3 fixed to FRN, $2.5bn 6y NC5 fixed to FRN, $2bn 15y NC10). Self-led. +120bps, +153bps and +243bps. It dropped plans for a 4y NC3 FRN.


    • Jan 17: BofA priced a $3bn 4y NC3 fixed. Self-led. A2/A-/AA-. +120bps. It dropped plans for a 4y NC3 FRN.


    • Jan 17: Woori Bank (A1) priced a $600m 5y Sustainability bond. Leads BNPP, BofA (B&D), CA, MUFG, SocGen and StanChart. +135bps.


    • Jan 17: Asahi Mutual Life priced a $375m perp NC5 (BBB). Leads Citi, Mizuho and MS. Yield 6.9%