USD MTNs: JPM Formosa; SocGen ZC; Some CMS

JPM Formosa; SocGen ZC; Some CMS

USD MTNs saw lower volumes this past week amid the massive volatility and large rate swings. Before the SVB collapse, volumes were already at a slower pace. Zero-coupon callables and Formosas both saw solo prints: Societe Generale sold a $10m 10y NC1 ZC callable (non-Formosa) with a high IRR of 6.89%. JP Morgan sold a $50m 10y NC2 fixed callable Formosa with a coupon of 5.6%. The Formosa was late to the screens as it was announced in early March.

Elsewhere, CMS-linked notes saw a trio of new notes from Yankee banks, including one EMTN 5y from Royal Bank of Canada that pays 6.86% for the first year, then pays 1y ICE SOFR+2%* days CMS2y/10y is greater than or equal to zero, floored at zero.

Recent structured note activity

Zero-coupon callables and Formosas:

• Societe Generale sold a $10m 10y NC1 zero coupon callable (non-Formosa). The EMTN matures Mar 2033 and is callable annually starting Mar 2024. Lead N/A. Estimated IRR 6.89%. Announced Mar 9.

   

• JP Morgan sold a $50m 10y NC2 fixed callable Formosa. The EMTN matures Mar 2033, is callable annually from Mar 2025 and pays a coupon of 5.60%. Leads are Sinopac and KGI. Announced Mar 2.

CMS-linked:

• Royal Bank of Canada is working on a self-led CMS-linked note maturing Mar 2028 that pays 6.86% for the first year, then pays 1y ICE SOFR+2%* days CMS2y/10y is greater than or equal to zero, floored at zero. EMTN.  

   

• Credit Agricole is working on a CMS-linked note maturing Mar 2035 NC3m that pays a coupon tied to CMS30y, capped at 8% and floored at zero. EMTN.

   

• Societe Generale is working on a self-led $40m CMS linked note maturing Jul 2028 NC3 that pays CMS1y +1.6%. EMTN.  

Step-up, fixed and floating callables:

• Bank of America is working on a self-led step-up callable maturing Mar 2038 NC3 that pays 5.25% to Mar 2026, 5.75% to Mar 2030, 6% to Mar 2034 and 7% thereafter. Domestic MTN.

   

  Bank of America is working on a self-led step-up callable maturing Mar 2030 NC1 that pays 5.45% to Mar 2025, 6% to Mar 2028 and 7% thereafter. Domestic MTN. 

   

  Bank of America is working on a self-led fixed callable maturing Mar 2026 NC3m that pays 4.9%. Domestic MTN.  

   

• Bank of Montreal is working on a self-led fixed callable maturing Mar 2028 NC6m that pays 5.3%. CD format. Domestic.

   

• Barclays is working on a self-led fixed callable maturing Mar 2026 NC3m that pays 4.9%. Private placement.  

   

• Citigroup is working on a self-led $10m floating callable maturing Mar 2033 NC4 that pays a O/N SOFR +121bps. EMTN.

   

  Citigroup is working on a self-led fixed callable maturing Mar 2028 NC3 that pays 5.55%. Domestic MTN.

   

• Credit Agricole is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.1%. EMTN.  

   

• EBRD sold a $100m 5y NC1 fixed callable. The global MTN matures Mar 2028 and is callable annually starting Mar 2024. Lead WFC. Pays a coupon of 5.92%. Announced Mar 9.

   

• Goldman Sachs is working on a self-led fixed callable maturing Mar 2028 NC1 that pays 5.7%. Domestic MTN.  

   

• HSBC is working on a self-led step-up callable maturing Mar 2025 NC1 that pays 4.95% to Mar 2024 and 5.05% thereafter. Eurodollar.  

   

  HSBC is working on a self-led $31.2m fixed callable maturing Mar 2028 NC1 that pays 5.88%. EMTN.

   

• JP Morgan is working on a self-led $30m floating callable maturing Mar 2029 NC5 that pays O/N SOFR +125bps. Domestic MTN.

   

• Morgan Stanley is working on a self-led fixed callable maturing Mar 2030 NC3 that pays 5.25%. Domestic MTN. 

   

  Morgan Stanley is working on a self-led fixed callable maturing Mar 2027 NC2 that pays 5%. Domestic MTN. 

   

  Morgan Stanley is working on a self-led fixed callable maturing Mar 2028 NC3 that pays 5.1%. Domestic MTN. 

   

• Toronto Dominion is working on a self-led fixed callable maturing Mar 2024 NC3m that pays 5.65%. GMTN.  

   

• Royal Bank of Canada is working on a self-led fixed callable maturing Mar 2028 NC3 that pays 5.7%. EMTN.  

   

• Societe Generale is working on a self-led fixed callable maturing Mar 2026 NC1 that pays 5.05%. EMTN.  

   

  Societe Generale is working on a self-led $30m fixed callable maturing Mar 2038 NC7 that pays 5.465%. EMTN.

   

• Standard Chartered is working on a self-led fixed callable maturing Mar 2033 NC2 that pays 6.1%. EMTN.

   

• UBS is working on a self-led fixed callable maturing Jan 2025 NC4m that pays 6.5%. EMTN.

   

  UBS is working on a self-led step-up callable maturing Mar 2025 NC3m that pays 3.91% to Jun 2024 and 4.11% thereafter. EMTN.

   

• Ford Motor Credit is working on a fixed callable via InspereX maturing Mar 2025 NC1 that pays 5.8%. Domestic MTN.  

   

• Dow Chemical is working on a fixed callable via InspereX maturing Mar 2033 NC6m that pays 4.9%. Domestic MTN.  

   

  Dow Chemical is working on a fixed callable via InspereX maturing Mar 2028 NC6m that pays 4.6%. Domestic MTN.  

   

  Dow Chemical is working on a fixed callable via InspereX maturing Mar 2053 NC6m that pays 5.6%. Domestic MTN.