USD MTNs: Callable supply surges; CS CPI; NBC floating Formosa

Matrix 7 Dec 2021
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Fixed callable supply surged. National Bank of Canada launched a 10y floating Formosa. Credit Suisse came with a pair of CPI notes.

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  • Callable supply surges; CS CPI; NBC floating Formosa  

  • Recent structured note activity

     

    Callable supply surges; CS CPI; NBC floating Formosa  

    Zero-coupon callables saw a couple of smaller prints as both Credit Agricole and NatWest sold 10m 10y NC1 ZCs that were non-Formosa. On the Formosa side, National Bank of Canada sold a 10y $15m floating callable Formosa that pays 2y ICE SOFR +145bps.

     

    As for simple fixed callables, Asian Development Bank was particularly active over the past week, with 5y to 15y callables from $40m to $65m in size. Meanwhile, bank callable activity also surged with the rise in rates and implied volatility, with JP Morgan, Royal Bank of Canada, Citigroup, Toronto Dominion among other banks issuing multiple fixed and step-up callable notes.

     

    On the inflation-linked side, Credit Suisse launched a pair of small relatively short dated CPI-linked notes that pay CPI plus a spread, floored at a given level.

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • Credit Agricole sold a $10m 10y NC1 zero-coupon callable (non-Formosa).  The EMTN matures Feb 2033, is callable annually from Feb 2024 and has an estimated IRR of 6.47%. Self-led.  Announced Feb 22.

       

    • NatWest sold a $10m 10y NC1 zero coupon callable (non-Formosa). The EMTN matures Feb 2033 and is callable annually starting Feb 2024. Self-led. Estimated IRR 6.42%. Announced Feb 23. 

       

    • National Bank of Canada sold a $15m floating callable Formosa. The EMTN matures Mar 2033 and pays 2y ICE SOFR +145bps. Callable starting Mar 2027 and annually thereafter. Leads KGI and SG Securities. Announced Feb 17.

     

    Inflation-linked:

     

    • Credit Suisse is working on a self-led $1.35m CPI-linked note maturing Feb 2025 that pays CPI +2.8%, floored at 2.8%. Eurodollar. 

       

      Credit Suisse is working on a self-led $2m CPI-linked note maturing Dec 2024 that pays CPI +5%, floored at 3%. EMTN.  

     

    CMS-linked:

     

    • Citigroup is working on a self-led CMS-linked note maturing Mar 2028 NC1 that pays 6.5% to Mar 2025, then pays CMS30y, capped at a given level and floored at 1.5%. Domestic MTN.

     

    Fixed and step-up callables:

     

    • Asian Development Bank is working on a $65m fixed callable via JPM maturing Mar 2028 NC2 that pays 5.35%. EMTN.

       

      Asian Development Bank is working on a $40m fixed callable via Nomura maturing Mar 2028 NC1 that pays 5.6%. EMTN.

       

      Asian Development Bank is working on a $50m fixed callable via CACIB maturing Mar 2028 NC1 that pays 5.62%. EMTN.

       

      Asian Development Bank is working on a $60m fixed callable via JPM maturing Mar 2033 NC2 that pays 5.5%.  EMTN.

                   

      Asian Development Bank is working on a $50m fixed callable via MS maturing Mar 2028 NC1 that pays 5.49%.  EMTN.

       

      Asian Development Bank is working on a $50m fixed callable via Morgan Stanley maturing Mar 2033 NC1 that pays 5.65%.  EMTN.

       

      Asian Development Bank is working on a $50m fixed callable via BNP Paribas maturing Mar 2038 NC2 that pays 5.22%.  EMTN.

       

    • Bank of America is working on a self-led step up callable maturing Mar 2030 NC1 that pays 5.25% to 2025, 6% to 2028 then 7% thereafter.  Domestic MTN.

       

    • Merrill Lynch is working on a self-led $20m fixed callable maturing Feb 2028 NC1 that pays 5.47%.  EMTN.

       

    • Bank of Montreal is working on a self-led fixed callable maturing Mar 2026 NC6m that pays 5%. CD format. Domestic.

       

      Bank of Montreal is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.8%. Domestic MTN.

       

      Bank of Montreal is working on a self-led step up callable maturing Feb 2025 NC1.5 that pays 5.6% to 2024 then 5.75% thereafter. EMTN.

       

    • Barclays is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 4.9%. EMTN.

       

      Barclays is working on a self-led fixed callable maturing Mar 2024 NC6m that pays 4.8%. EMTN.

       

    • CIBC is working on a self-led fixed callable maturing Mar 2025 NC1 that pays 5.45%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Apr 2024 NC1 that pays 5.35%. GMTN.

       

      CIBC is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.55%. GMTN.

       

    • Citigroup is working on a self-led fixed callable maturing Feb 2033 NC2 that pays 5.5%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.625%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.5%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Mar 2025 NC1 that pays 5.45%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing Mar 2033 NC18m that pays 5.75%. Domestic MTN.

       

    • Credit Agricole is working on a self-led $18m fixed callable maturing Mar 2033 NC3 that pays 5.58%. EMTN.

       

      Credit Agricole is working on a self-led $30m fixed callable maturing Mar 2030 NC3 that pays 5.45%. EMTN.

       

    • Credit Suisse is working on a fixed callable via FITB maturing Mar 2028 NC2 that pays 6.6%. Domestic MTN.

       

      Credit Suisse is working on a fixed callable via FITB maturing Mar 2026 NC1 that pays 6.75%. Domestic MTN.

       

      Credit Suisse is working on a fixed callable via InspereX maturing Mar 2025 NC18m that pays 6.75%. Domestic MTN.

       

      Credit Suisse is working on a fixed callable via Jefferies maturing Mar 2024 NC6m that pays 6.25%. Domestic MTN.

       

    • DZ Bank is working on a self-led $20m fixed callable maturing Mar 2033 NC2 that pays 5.6%. EMTN.

       

    • Goldman Sachs is working on a self-led step-up callable maturing Mar 2030 NC1 that pays 5.5% to Mar 2025, 6% to Mar 2027, 6.5% to Mar 2029, and 7.5% thereafter. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.875%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.625%. Domestic MTN.

       

      Goldman Sachs is working on a self-led fixed callable maturing Mar 2025 NC6m that pays 5.5%. Domestic MTN.

       

    • HSBC is working on a self-led $62.5m fixed callable maturing Mar 2028 NC1 that pays 5.81%. EMTN.

       

    • IBRD is working on a $50m fixed callable via BNPP maturing Mar 2028 NC2 that pays 5.05%. Announced Feb 23. EMTN.

       

      IBRD is working on a $15m fixed callable via ML maturing Mar 2028 NC4 that pays 5.045%. Announced Feb 21. EMTN.

       

    • JP Morgan is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.85%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Nov 2031 callable Nov 2030 that pays 5.5%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2025 NC6m that pays 5.4%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2028 NC2 that pays 5.65%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Sep 2024 NC6m that pays 5.325%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2026 NC6m that pays 5.4%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Apr 2024 NC6m that pays 5.25%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2027 NC1 that pays 5.5%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2028 NC3 that pays 4.85%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2025 NC6m that pays 5.375%. Domestic MTN.  

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2028 NC2 that pays 5.55%. Domestic MTN. 

       

      JP Morgan is working on a self-led fixed callable maturing Mar 2033 NC3 that pays 5.5%. Domestic MTN. 

       

      JP Morgan is working on a $10m self-led fixed callable maturing Mar 2033 NC2 that pays 5.58%.  EMTN. 

       

      JP Morgan is working on a $10m self-led fixed callable maturing Mar 2033 NC2 that pays 5.51%.  EMTN. 

       

      JP Morgan is working on a $20m self-led fixed callable maturing Mar 2028 NC2 that pays 5.45%.  EMTN. 

       

    • Morgan Stanley is working on a self-led fixed callable maturing Sep 2031 callable Mar 2030 that pays 5.15%. Domestic MTN.

       

      Morgan Stanley is working on a self-led fixed callable maturing Mar 2028 NC3 that pays 4.85%. Domestic MTN. 

       

      Morgan Stanley is working on a self-led fixed callable maturing Sept 2026 NC2 that pays 4.7%.  Domestic MTN. 

       

      Morgan Stanley is working on a self-led fixed callable maturing Mar 2027 NC2 that pays 4.75%.  Domestic MTN. 

       

      Morgan Stanley is working on a self-led fixed callable maturing Mar 2030 NC3 that pays 5%.  Domestic MTN. 

       

      Morgan Stanley is working on a self-led fixed callable maturing Mar 2038 NC3 that pays 5.3%.  Domestic MTN.

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Mar 2033 NC2 that pays 5.85%. GMTN.  

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Mar 2030 NC3 that pays 5.55%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.5%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Apr 2024 NC9m that pays 5.35%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Sep 2024 NC1 that pays 5.4%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Mar 2026 NC2 that pays 5.25%. GMTN.

       

    • Societe Generale is working on a self-led fixed callable maturing Mar 2028 NC6m that pays 6%. Domestic MTN.

       

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

       

    • Toronto Dominion is working on a self-led fixed callable maturing Mar 2025 NC6m that pays 5.65%. Domestic MTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.75%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2024 NC9m that pays 5.3%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Apr 2024 NC9m that pays 5.4%. GMTN.

       

      Toronto Dominion is working on a self-led fixed callable maturing Mar 2029 NC3m that pays 6%. GMTN.

       

    • Wells Fargo is working on a self-led step-up callable maturing Mar 2027 NC1 that pays 5.45% to Mar 2025, 5.65% to Mar 2026 and 6.55% thereafter. Domestic MTN.   

       

      Wells Fargo is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.45%. Domestic MTN.

       

    • Ford Motor Credit is working on a fixed callable via Incap maturing Mar 2028 NC1 that pays 7.15%. Domestic MTN.

       

    • Caterpillar Financial is working on a fixed callable via Incap maturing Mar 2028 NC1 that pays 4.6%. Domestic MTN.

       

    • Dow Chemical is working on a fixed callable via InspereX maturing Mar 2053 NC6m that pays 5.95%. Domestic MTN.

       

      Dow Chemical is working on a fixed callable via InspereX maturing Mar 2033 NC6m that pays 5.45%. Domestic MTN.

       

      Dow Chemical is working on a fixed callable via InspereX maturing Mar 2028 NC6m that pays 5.3%. Domestic MTN.

       

    • Ally Financial is working on a fixed callable via InspereX maturing Mar 2033 NC6m that pays 6.5%. Domestic MTN.

       

      Ally Financial is working on a fixed callable via InspereX maturing Mar 2026 NC6m that pays 6.25%. Domestic MTN.

     

    Extendibles:

     

    • Bank of Montreal is working on a self-led USD extendible with initial maturity Mar 2024 and then extendible to Mar 2038 that pays 5.75%. Domestic MTN.

     

     

     
     
     
     

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