USD New Issues: Post-earnings supply kicks off with WFC

Container ship at sea above 25 MAr 2021
Wells Fargo has announced a 11y NC10, the first of the big six to enter the funding markets post Q1 earnings. Last week saw nearly $11bn price.

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  • Post-earnings supply kicks off with WFC

  • New issues

  • Recent issues


    Post-earnings supply kicks off with WFC  

    IG new issuance (ex-SSA) managed to muster up $10.95bn in supply in the past week, on the lower end of expectations. Walmart’s CPI-day $5bn 5-part led the supply while MUFG came the day prior with a $2.5bn 4-part.


    Week over week IG corporate spreads narrowed 3bps to 143bps while high yield spreads tightened 41bps to 443bps according to the ICE BofA Masters Indexes.


    As for the coming week, surveys expect around the same pace as last week with around $10bn to $15bn expected. In post-Q1 earnings issuance, Wells Fargo announced a 11y NC10 today, while JP Morgan and Citigroup have not entered as of yet. Tomorrow Bank of America and Goldman Sachs release result followed by Morgan Stanley on Wednesday.



    New issues


    • Wells Fargo is working on a $TBA 11y NC10. Self-led. A1/BBB+/A+. Price talk +205/210bps area.


    • Mars Inc. is working on a $TBA 3-part (5y, 8y sust. and 10y). Leads BNPP, Citi, JPM and MS. A1/A. Price talk +115bps, +135bps and +140bps area.


    • Cargill plans a $TBA 2-part (long 3y and 10y). Leads Barclays, BNPP, BofA and GS. A2/A/A. Price talk +95bps and +150bps area.


    • Ontario Teachers’ Finance Trust plans a USD 5y bond. Leads BofA, Citi, NBC and RBC. Price talk at around swaps +80bps. Expected Tuesday.


    • The EIB plans a USD 7y Global at around swaps +41bps via Barclays, JPM and MS. Expected to price tomorrow.


    • Asian Development Bank plans a USD 5y Global BofA, BMO, BNPP and HSBC. Price talk at around swaps +38bps. Expected to price Tuesday.


    • Japan Bank for International Cooperation plans a USD 3y issue. Leads Barclays, BofA, Citi and Nomura (B&D). Price talk mid swaps +50bps.


    • Jakarta-based Green energy company Pertamina Geothermal has mandated, ANZ, BNPP, Citi, HSBC, Mandiri, MUFG, SMBC and United Overseas Banks to lead a USD benchmark Green Bond issue following investor calls.


    • Kookmin Bank plans a USD 5y bond via BofA, Citi (B&D), HSBC, JPM, KDB and MUFJ. Aa3/A+. Price talk +95bps area.


    • CK Hutchison plans a USD 5y and 10y bond issue via BofA, Barclays, BNPP, HSBC, JPM, Mizuho and Standard Chartered.


    • Abu Dhabi National Energy (Taqa) launched a $1.5bn 2-part ($500m long 5y and a $1bn  10y Green Bond). Leads BNPP, ENDB, FAB, HSBC, ICBC, IMI, Scotia, SMBC and Standard Chartered (B&D). Aa3/AA-. +80bps and +110bps.


    Recent issues


    • Apr 13: American Honda Finance priced $1.5bn 2-part ( $800m 2y fixed and $700m 7y). Leads  BNPP, MUFG, SocGen and SMBC. A3/A-. +65bps and +115bps. It dropped plans for a 2y FRN.


    • Apr 13: OMERS Finance Trust priced a $1bn 5y at swaps +83bps. Leads are BofA, Citi, RBC (B&D) and TD. Aa1/AA+/AAA.


    • Apr 12: Walmart priced a $5bn 5-part ($750m 3y, $750m 5y, $500m 7y, $1.5bn 10y and $1.5bn 30y). Leads Citi, HSBC and Mizuho. Aa2/AA/AA. +30bps, +47bps, +60bps, +70bps and +90bps respectively.


    • Apr 11: MUFG priced a $2.5bn 4-part ($300m 3y NC2 FRN, $500m 3y NC2, $700m 6y NC5 and $1bn 11y NC10 fixed TLAC bonds).  Leads MS and MUFG. +150bps, SPFR +144bps, +170bps and +197bps.


    • Apr 10: Jabil priced a $300m long 5y fixed. Leads BofA, JPM, Mizuho and USB. +205bps.


    • Apr 10: Protective Life priced a $300m 3y FA backed. Leads Citi, USB and WFS. A1/AA-/AA-. +145bps.


    • Apr 10: Take-Two priced a $1bn 2-part ($500m 3y and $500m 5y). Leads JPM and WFS. Baa2/BBB.  +125bps and +145bps.


    • Apr 10: Federal Realty priced a $350m 5y Green fixed. Leads BofA, JPM, PNC, TD. Baa1/BBB+. +195bps.