USD MTNs: ZC activity dialed back; CMS prints; Fixed & step-ups active

Big green tree 1 Feb 2021
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ZC activity was dialed back a bit this week while a few CMS deals printed. MS, GS, JPM and Citi were all active in fixed and step-up callables.

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  • ZC activity dialed back; CMS prints; Fixed & step-ups active

  • Recent structured note activity

     

    ZC activity dialed back; CMS prints; Fixed & step-ups active

    Zero-coupon callable activity was dialed back a bit this week with only Societe Generale selling a $10m 10y NC1 zero coupon callable (non-Formosa) and Credit Agricole selling a $10m 10y NC1 zero coupon callable (non-Formosa).


    On the CMS side, Societe Generale launched a self-led CMS steepener maturing Feb 2038 NC1 that pays 10% for the first year, then pays 10*(CMS2y/30y), capped at 12% and floored at zero. Similarly, JP Morgan launched a self-led CMS steepener maturing Feb 2038 NC1 that pays 8.5% for the first year, then pays 10*(CMS2y/30y), floored at zero.

     

    Elsewhere, Morgan Stanley, Goldman Sachs, JP Morgan and Citigroup were all quite busy printing fixed and step-up callables.

     

    Lastly, Bank of Montreal launched a self-led CAD extendible with initial maturity Feb 2024 and then extendible to Feb 2028 that pays 4.9% to Feb 2024, then pays 5%, 5.1%, 5.2% and 5.3%, stepping up annually. Canadian.

     


    Recent structured note activity

    Zero-coupon callables and Formosas:

    • Societe Generale sold a $10m 10y NC1 zero coupon callable (non-Formosa). The EMTN matures Feb 2033 and is callable annually starting Jan 2024. Lead N/A. Estimated IRR 6.26%. Announced Jan 27.

       

    • Credit Agricole sold a $10m 10y NC1 zero coupon callable (non-Formosa). The EMTN matures Jan 2033 and is callable annually starting Jan 2024. Self-led. Estimated IRR 6.15%. Announced Jan 25.

     

    CMS steepeners:

    • Societe Generale is working on a self-led CMS steepener maturing Feb 2038 NC1 that pays 10% for the first year, then pays 10*(CMS2y/30y), capped at 12% and floored at zero. Conditional on the S&P 500, Euro Stoxx Bank Index and Nasdaq remaining at or above 60% of an initial index level throughout the life of the note. Domestic MTN.

       

    • JP Morgan is working on a self-led CMS steepener maturing Feb 2038 NC1 that pays 8.5% for the first year, then pays 10*(CMS2y/30y), floored at zero. Eurodollar.

     


    Fixed and step-up callables:

    • SocGen is working on a fixed callable via Morgan Stanley maturing Feb 2028 NC1 that pays 5%. Domestic MTN.

       

      SocGen is working on a fixed callable via Morgan Stanley maturing Feb 2025 NC1 that pays 4.75%. Domestic MTN.

       

    • Barclays is working on a self-led fixed callable maturing Feb 2026 NC1 that pays a TBD fixed rate. EMTN.

       

    • Morgan Stanley is working on a self-led fixed callable maturing Feb 2028 NC3 that pays 4.35%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2031 NC3 that pays 4.6%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2033 NC2 that pays 4.8%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2026 NC2 that pays 4.1%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2033 NC3 that pays 5%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2027 NC3 that pays 4.25%. Domestic MTN.

       


    • Goldman Sachs is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.25%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.3%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2025 NC6m that pays 5.1%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 5.15%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.1%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2025 NC6m that pays 5%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2025 NC6m that pays 5.1%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Feb 2028 NC2 that pays 5.05%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Feb 2026 NC2 that pays 5%. Domestic MTN.

       

      JP Morgan is working on a fixed callable via JPM and WFS maturing Feb 2025 NC6m that pays 5%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Feb 2027 NC1 that pays 5%. Domestic MTN.

       

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


    • Citigroup is working on a self-led fixed callable maturing Jan 2028 NC1 that pays 5%. Domestic MTN.


      Citigroup is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 4.8%. Domestic MTN.

       

      Citigroup is working on a self-led step-up callable maturing Feb 2030 NC1 that pays 5% to 2025, 5.25% to 2027, 5.5% to 2028, 5.75% to 2029 then 6% thereafter. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.1%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.1%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Feb 2025 NC1 that pays 5%. Domestic MTN.

       

    • Bank of America is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.4%. EMTN.

       

    • IBRD is working on a $50m fixed callable via Barclays maturing Feb 2028 NC3 that pays 4.075%. GMTN.

       

    • ING Bank is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.43%. EMTN.

       

      ING Bank is working on a self-led fixed callable maturing Feb 2028 NC2 that pays 5.25%. EMTN.

       

    • Credit Agricole is working on a self-led fixed callable maturing Feb 2028 NC2 that pays 5.2%. EMTN.

       

      Credit Agricole is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.3%. EMTN.

       

    • HSBC is working on a self-led step-up callable maturing Aug 2024 NC1 that pays 4.67% to Aug 2023, 4.77% to Feb 2024 then 4.87% thereafter. Eurodollar

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Feb 2033 NC3 that pays 5.25%. GMTN.

       

    • Standard Chartered is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.1%. EMTN.

       

    • Toronto Dominion is working on a self-led $97m fixed callable maturing Jan 2033 NC6m that pays 5.25%. CD format. Domestic.

       

      Toronto Dominion is working on a self-led $82.5m fixed callable maturing Jan 2024 NC6m that pays 5.3%. CD format. Domestic.

       

    • Ally Financial is working on a fixed callable via Insperx maturing Feb 2033 NC6m that pays 6.25%. Domestic MTN.

       

      Ally Financial is working on a fixed callable via Insperx maturing Feb 2026 NC6m that pays 5.9%. Domestic MTN.

     

    Extendibles:

    • Bank of Montreal is working on a self-led CAD extendible with initial maturity Feb 2024 and then extendible to Feb 2028 that pays 4.9% to Feb 2024, then pays 5%, 5.1%, 5.2% and 5.3%, stepping up annually. Canadian.

     

     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

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