USD New Issues: Front-loaded supply hits the mark

Target hit 17 Jan 2023
Another week that saw $26bn in mostly front-loaded IG supply managed to just slightly surpass expectations.

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  • USD New Issues: Front-loaded supply hits the mark
  • New issues
  • Recent issues

    USD New Issues: Front-loaded supply hits the mark
    IG new issuance closed out last week with a decent $26bn in primary deal pricings – just a smidgen over the roughly $20-$25bn that syndicate desks were initially expecting. Much of the issuance was front-loaded as just over $18bn came on Monday and Tuesday alone with names like Truist, P&G, Keybank, BNS, Bank of NY Mellon and M&T headlining the opening days.


    Week over week, IG corporate spreads narrowed 4bps to 125bps while high yield spreads narrowed 12bps to 423bps, according to the ICE BofA Masters Indices.


    For the upcoming week, syndicate desks are once again looking for roughly $20-$25bn in new IG supply, with supply corralled to three days this week – Monday, Tuesday and Thursday, with Wednesday’s FOMC a likely obstacle, sources say. The January issuance tally currently stands at just over $136bn and is on course to surpass the $142bn that came to market last January.

    New issues

    • Corp Nacionale del Cobre de Chile is working on a $900m 10y deal via BNPP, BofA, Santander and Scotia. A3/A. Price talk: +200bps area.


    • IBM is working on a 4-part 3y, 5y, 10y and 30y benchmark via MUFG, BofA, Barclays, Citi, GS, JPM, MIZ and TD. A3/A-. Price talk: +85bps area, +105bps, +140bps area, +170bps area.


    • Elevance is working on a 3NC1, 10y and 30y benchmark via Barclays, GS and JPM. Baa2/A/BBB. Price talk: +125bps area, +155bps area, +180bps area.


    • Constellation Brands is working on a 3NC1 benchmark via BofA, GS and JPM. Baa3/BBB. Price talk: +140bps area.


    • Tyco Electronics is working on a 3y deal via Citi, BofA and JPM. A3/A-/A-. Price talk: +85bps area.


    • The Central American Bank for Economic Integration (CABEI) plans a USD 3y Social Bond at SOFR +130bps or so via BNPP, BofA, Credit Agricole and HSBC (B&D).


    • Bank of New Zealand plans a 5y USD at around USTs +140bps via Citi, JPM, NAB, Lendlease Corp and RBC.


    Recent issues

    • Jan 26:US Bancorp priced a$3.65bn 2-part ($1.65bn 6y NC5 and $2bn 11y NC10). Leads Barclays, Citi and USB. +103bps and +133bps.


    • Jan 26: Norfolk Southern priced a $500m 10y benchmark via Citi, GS and USB. Baa1/BBB+. +100bps.


    • Jan 26: Kinder Morgan (Baa2/BBB) priced a $1.5bn 10y. Leads are Barclays, JPM, PNC and Scotia.+175bps.


    • Jan 25: Capital One priced a $2.25bn 2-part ($1bn 6y NC5 and $1.25bn 11y NC10). Leads BofA, Citi, MS and RBC. Baa1/BBB/A-. +190bps and +235bps.

    • Jan 25: Ziraat Bank priced a $500m long 3y at 9.75%. Leads are ENBD, GS, MASHRQ, SMBC Nikko, SocGen and StanChart (B&D). B3/B-.


    • Jan 24: Colombia priced a $1.8bn 11y benchmark via BBVA, ITAU and JPM. Baa2/BB+. 7.6%.


    • Jan 24:Bank of Nova Scotia priced a $2.5bn 2-part ($1.25bn 3y fixed and $1.25bn 7y). Leads DB, BofA and Scotia. A2/A-/AA-. +93bps and +135bps. It dropped plans for a 3y FRN.


    • Jan 24:Manufacturers &Traders Trust priced a $3.5bn 3-part ($1.3bn 3y, $1.2bn 5y and $1bn 11y NC10). Leads Barclays, BofA (B&D) and MS. A3/A-/A on 3y and 5y and A3/BBB+/A on 11y NC10. +85bps, +115bps and +160bps.


    • Jan 24:BNY Mellon priced a $1.5bn 2-part ($750m 6y NC5 and $750m 11y NC10). Leads Barclays, BofA, BNYM and UBS. A1/A/AA-. +97bps, +125bps.


    • Jan 24:New York Life priced a $1bn a 10y FA-backed 10y deal via Citi, JPM and MS. Aaa/AA+/AAA. +110bps.


    • Jan 24:Ashtead Capital priced a $750m long 10y benchmark via BofA, Citi and JPM. Baa3/BBB-/BBB. +212.5bps.


    • Jan 24:IFC priced a $600m 3y FRN Global via BofA, BMO and WFS. SOFR +28bps.


    • Jan 23: Truist Financial priced a $1.5bn 6y NC5 and $1.5bn 11y NC10 bonds at around Treasuries +155 and 185bps. Leads are Barclays, MS and TSI.


    • Jan 23: Keybank priced a $500m 3y and $1bn 10y bonds at Treasuries +83bps and +153bps. Leads are DB, JPM, Keybank and MS.


    • Jan 23: Autozone Priced a $450m 5y and $550 10y benchmark via WFS, BofA, JPM and TSI. Baa1/BBB/BBB. Priced at: +90bps, +125bps.


    • Jan 23: Procter & Gamble priced a $650m 3y, $600m 5y and 1$850m 10y bonds at Treasuries +23bps, +35bps and 53bps. Leads are Citi, GS and MS.


    • Jan 23: State Street priced a $500m 3NC2 and $750m 11NC10 benchmark via BofA, GS, MS and SIEWL. A1/A/AA-. Priced at +62.5bps, +130bps.