USD MTNs: Callables and ZCs pick up the pace; CPI linked

Sprinters start blur 17 Jan 2023
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MTNs were active this past week as callables picked up across the board. In zero-coupon callables, supply was more plentiful. CPI notes see two.

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  • Callables and ZCs pick up the pace; CPI linked  

  • Recent structured note activity

     

    Callables and ZCs pick up the pace; CPI linked  

    MTNs were active this past week as callables picked up across the board. In zero-coupon callables, supply was more plentiful as new ZCs came from ING ($150m 15y NC7, $30m 15y NC7), Credit Agricole ($100m 5y NC3, $50m 15y NC8, $10m 10y NC2) and BNP Paribas ($50m 15y NC8). All the ZCs were non-Formosa.

     

    On the Formosa side, Greensaif priced a $1.5bn 19y amortizing with a WAL of 18y at Treasuries +275bps via BNPP (B&D), HSBC, JPM and Citi, plus FADB, MUFG and SMBC Nikko.

     

    In other structured note activity, inflation linked note saw two prints in the past week – one short dated note with a maturity of Dec 2024 from Credit Suisse and a longer dated 10y note from JP Morgan that pays a coupon of CPI YoY +125bps for the first two years, floored at zero, and then pays CMS30y, capped at 10% and floored at zero.

     

    Meanwhile simple fixed callable activity was very active over the past week, with Yankee FIG issuers such as Standard Chartered and ING Bank printing many new callables along with domestic banks such as Morgan Stanley, Citigroup, JP Morgan, BofA   and Goldman Sachs involved. Canadian banks including CIBC, Bank of Montreal and RBC were also active along with SSAs African Development Bank, Asian Development Bank, IADB and IBRD.

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • ING Bank sold a $150m 15y NC7 zero coupon callable (non-Formosa). The EMTN matures Feb 2038, is callable annually from Feb 2030 and has an estimated IRR of 5.47%. Lead unconfirmed and announced Feb 10.

       

      ING Bank also sold a $30m 15y NC7 zero coupon callable (non-Formosa). The EMTN matures Feb 2038, is callable annually from Feb 2030 and has an estimated IRR of 5.47%. Lead unconfirmed and announced Feb 10.

       

    • Credit Agricole sold a $100m 5y NC3 zero coupon callable (non-Formosa). The EMTN matures Feb 2028, is callable annually from Feb 2026 and has an estimated IRR of 5.05%. Self-led and announced Feb 10.

       

      Credit Agricole sold a $10m 10y NC2 zero coupon callable (non-Formosa). The EMTN matures Feb 2033, is callable annually from Feb 2025 and has an estimated IRR of 6.14%. Self-led and announced Feb 13.

       

      Credit Agricole sold a $50m 15y NC8 zero coupon callable (non-Formosa). The EMTN matures Feb 2038 and is callable annually starting Feb 2031. Self-led. Estimated IRR 5.23%. Announced Feb 7.

       

    • BNP Paribas sold a $50m 15y NC5 zero coupon callable (non-Formosa). The EMTN matures Feb 2038 and is callable annually starting Feb 2028. Self-led. Estimated IRR 5.14%. Announced Feb 8.

       

    • Greensaif Pipelines priced a $1.5bn 19y amortizing Formosa with a WAL of 18y at Treasuries +275bps via BNPP (B&D), HSBC, JPM and Citi, plus FADB, MUFG and SMBC Nikko. It also priced a $1.5bn 15y amortizing non-Formosa at +245bps.  

     

    Inflation-linked:

     

    • JP Morgan is working on a self-led inflation linked note maturing Feb 2033 NC3 that pays CPI YoY +125bps for the first two years, floored at zero, and then pays CMS30y, capped at 10% and floored at zero. Domestic MTN.

       

    • Credit Suisse is working on a self-led CPI-linked note maturing Dec 2024 that pays a coupon tied to CPI NSA +5% spread, floored at 3%. EMTN.

     

    CMS-linked:

     

    • Societe Generale is working on a self-led CMS linked note maturing Feb 2035 NC2 that pays 10% for the first two years and then pays a coupon tied to CMS30y, capped at 10% and floored at zero. Domestic MTN.

       

    • UBS is working on a self-led CMS linked note maturing Aug 2024 NC6m that pays 6% to Aug 2023 than pays CMS2y +5bps, floored at zero. Domestic MTN.

       

    • JP Morgan is working on a self-led CMS linked note maturing Feb 2038 NC2 that pays 10% to Feb 2024 than pays CMS30y, capped at 10% and floored at zero. CD format. Domestic.

     

    Step-up, fixed and floating callables:

     

    • African Development Bank sold an $25m 5y NC2 fixed callable. The EMTN matures Feb 2028, is callable Feb 2025 and pays a 4.875% coupon. Lead WFS. Announced Feb 13.

       

      African Development Bank sold an $50m 5y NC2 fixed callable. The EMTN matures Feb 2028, is callable annually from Feb 2025 and pays a 4.9% coupon. Lead JPM. Announced Feb 10.

       

    • Asian Development Bank is working on a $100m fixed callable via BNPP maturing Feb 2028 NC1 that pays 5.225%. EMTN. Announced Feb 10. 

       

      Asian Development Bank is working on a $50m fixed callable via Nomura maturing Feb 2028 NC2 that pays 4.9%. EMTN. Announced Feb 10. 

       

    • Bank of America is working on a self-led step-up callable maturing Feb 2030 NC1 that pays 5.1% to Feb 2026, 5.5% to Feb 2028 and 6% thereafter. Domestic MTN.

       

    • Merrill Lynch is working on a self-led $10m fixed callable maturing Feb 2028 NC1 that pays 5.25%. EMTN.

       

      Merrill Lynch is working on a self-led $10m fixed callable maturing Feb 2028 NC2 that pays 5.17%. EMTN.  

       

    • Bank of Montreal is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.6%. Domestic MTN.

       

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

       

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

       

      Bank of Montreal is working on a self-led fixed callable maturing Feb 2028 NC6m that pays 4.65%. CD format. Domestic. 

       

    • Barclays is working on a self-led $60m fixed callable maturing Feb 2028 NC2 that pays 5.4%. EMTN.  

       

      Barclays is working on a self-led $20m fixed callable maturing Feb 2028 NC3 that pays 5.3%. EMTN.  

       

      Barclays is working on a self-led fixed callable maturing Feb 2028 NC2 that pays 5.25%. GMTN.

       

    • Citigroup is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.2%. Domestic MTN.

       

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

       

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

       

    • CIBC is working on a self-led fixed callable maturing Feb 2033 NC5 that pays 5%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Feb 2029 NC1 that pays 5.15%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Feb 2033 NC1 that pays 5.25%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Feb 2025 NC1m that pays 5.1%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.4%. Domestic MTN.

       

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

       

      CIBC is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 5.2%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Mar 2024 NC1 that pays 5.1%. GMTN.

       

    • Credit Agricole is working on a self-led $20m fixed callable maturing Feb 2028 NC3 that pays 5%. EMTN.

       

      Credit Agricole is working on a self-led $30m fixed callable maturing Feb 2028 NC2 that pays 5.25%. EMTN.

       

    • Credit Suisse is working on a self-led fixed callable maturing Feb 2024 NC3m that pays 6.4%. Also putable Apr 2023. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2024 NC6m that pays 6.1%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2028 NC2 that pays 5.7%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 6.05%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2027 NC1 that pays 5.8%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2025 NC18m that pays 6.1%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2024 NC6m that pays 6.1%. Domestic MTN.  

       

      Credit Suisse is working on a self-led fixed callable maturing Feb 2024 NC2m that pays 6.4%. Also puttable. EMTN.

       

    • Goldman Sachs is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 5.5%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 5.3%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Feb 2025 NC1 that pays 5.25%. Domestic MTN.

       

      Goldman Sachs is working on a self-led step-up callable maturing Feb 2030 NC1 that pays 5.25% to Feb 2026, 5.75% to Feb 2028, 6.25% to Feb 2029 and 7% thereafter. Domestic MTN.

       

    • HSBC is working on a self-led fixed callable Feb 2025 NC1 that pays 4.95%. Eurodollar.

       

    • IADB is working on a $50m fixed callable via WFS maturing Feb 2028 NC3 that pays 4.375%. GMTN.

       

    • IBRD sold a $100m 10y NC2 fixed callable. The EMTN matures Feb 2033 and is callable annually starting Feb 2025 and pays a coupon of 5.16%. Lead WFS. Announced Feb 9.

       

      IBRD sold a $60m 10y NC2 fixed callable. The EMTN matures Feb 2033 and is callable annually starting Feb 2025 and pays a coupon of 5.15%. Lead WFS. Announced Feb 8.

       

      IBRD sold a $110m 10y NC2 fixed callable. The EMTN matures Feb 2033 and is callable annually starting Feb 2025 and pays a coupon of 5.1%. Lead WFS. Announced Feb 7.

       

    • ING Bank is working on a $100m fixed callable maturing Feb 2028 NC3 that pays 5.26%. Lead N/A. EMTN. Announced Feb 10.

       

      ING Bank is working on a $100m fixed callable maturing Feb 2028 NC3 that pays 5.21%. Lead N/A. EMTN. Announced Feb 9.

       

      ING Bank is working on a $25m fixed callable maturing Feb 2033 NC3 that pays 5.65%. Lead N/A. EMTN. 

       

      ING Bank is working on a $100m fixed callable maturing Feb 2028 NC3 that pays 5.25%. Lead N/A. EMTN.

       

      ING Bank is working on a $15m fixed callable maturing Feb 2033 NC3 that pays 5.56%. Lead N/A. EMTN.

       

      ING Bank is working on a self-led $10m fixed callable maturing Feb 2028 NC3 that pays 5.25%. EMTN.

       

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

       

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

       

      JP Morgan is working on a self-led fixed callable maturing Feb 2025 NC1 that pays 4.825%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Nov 2032 NC8 that pays 5.25%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Feb 2033 NC3 that pays 5.15%. Domestic MTN.

       

    • KfW sold a $50m 20y NC4 fixed callable. The EMTN matures Feb 2043 and is callable Feb 2027 and pays 4.615%. Lead Standard Chartered. Estimated IRR 6%. Announced Feb 8.

       

    • Morgan Stanley is working on a self-led fixed callable maturing Feb 2028 NC3 that pays 4.5%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2036 NC3 that pays 5%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Aug 2030 NC3 that pays 4.75%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Aug 2026 NC2 that pays 4.25%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Feb 2027 NC2 that pays 4.4%. Domestic MTN.

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Feb 2025 NC1 that pays 5.2%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Feb 2024 NC1 that pays 5.1%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Aug 2024 NC1 that pays 5.15%. GMTN.

       

      RBC sold a $20m 15y NC4 fixed callable. The EMTN matures Feb 2038, is callable annually from Feb 2027 and pays a 5.405% coupon. Puttable in May 2023. Self-led and announced Feb 8.

       

    • Santander is working on a self-led fixed callable maturing Feb 2026 NC1 that pays 4.3%. EMTN. 

       

    • Societe Generale is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 4.7%. EMTN.

       

      Societe Generale is working on a self-led fixed callable maturing Feb 2028 NC1 that pays 4.6%. EMTN.

       

    • Standard Chartered Bank sold an $20m 5y NC2 fixed callable. The EMTN matures Feb 2028, is callable annually from Feb 2025 and pays a 5.42% coupon. Self-led and announced Feb 10.

       

      Standard Chartered Bank sold an $100m 5y NC3 fixed callable. The EMTN matures Feb 2028, is callable annually from Feb 2026 and pays a 5.03% coupon. Self-led and announced Feb 9.

       

      Standard Chartered is working on a $10m fixed callable maturing Feb 2038 NC3 that pays 5.58%. Lead N/A. EMTN.

       

      Standard Chartered is working on a $15m fixed callable maturing Feb 2038 NC3 that pays 5.58%. Lead N/A. EMTN.

       

      Standard Chartered sold a $56m 5y NC2 fixed callable (non-Formosa). The EMTN matures Feb 2028, is callable annually from Feb 2025 and pays a 5.4% coupon. Lead unconfirmed and announced Feb 8.

       

      Standard Chartered sold a $60m 5y NC2 fixed callable (non-Formosa). The EMTN matures Feb 2028, is callable annually from Feb 2025 and pays a 5.4% coupon. Self-led and announced Feb 8.

       

      Standard Chartered sold a $42m 5y NC3 fixed callable (non-Formosa). The EMTN matures Feb 2028, is callable annually from Feb 2026 and pays a 5.08% coupon. Self-led and announced Feb 7.

       

      Standard Chartered sold a $50m 5y NC2.5 fixed callable (non-Formosa). The EMTN matures Feb 2028, is callable annually from Aug 2025 and pays a 5.35% coupon. Self-led and announced Feb 7.

       

    • Toronto Dominion is working on a self-led floating callable maturing Feb 2024 callable Nov 2023 that pays FF effective +40bps. CD format. Domestic.

       

      Toronto Dominion is working on a fixed callable via WFS and TD maturing Feb 2026 NC1 that pays 5.35%. GMTN. 

       

      Toronto Dominion is working on a fixed callable via WFS and TD maturing Feb 2028 NC1 that pays 5.6%. GMTN. 

       

    • UBS is working on a self-led floating callable maturing Feb 2024 NC1m that pays 1y ICE SOFR flat. EMTN.

       

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

       

    • Ally Financial is working on a fixed callable via Insperx maturing Feb 2030 NC6m that pays 6.05%. Domestic MTN. 

       

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

       

    • Ford Motor Credit is working on a fixed callable via Incap maturing Feb 2025 NC1 that pays 6.3%. Domestic MTN.

       

    • Verizon Communications is working on a fixed callable via InspereX maturing Feb 2030 NC1 that pays 4.8%. Domestic MTN.

       

    • GM Financial is working on a fixed callable via InspereX maturing Feb 2027 NC1 that pays 5.4%. Domestic MTN.

     

    Extendibles:

     

    • Bank of Montreal is working on a self-led USD extendible with initial maturity Aug 2023 and then extendible to Feb 2025 that pays 5.2%. Domestic MTN.

       

      Bank of Montreal is working on a self-led USD extendible with initial maturity Aug 2023 and then extendible to Feb 2025 that pays 5.35%. Domestic MTN.

     

     
     
     
     

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