USD MTNs: 10y fixed callable Formosas pick up; IBRD callables; ZCs

10y fixed callable Formosas pick up; IBRD callables; ZCs

Formosa 10y fixed callable issuance picked up in the past week, with $153m 10y sold across four different notes, led by Credit Agricole’s $70m, $50m 10y NC2s along with a $31m 10y NC5. Other issuers involved included Merrill Lynch, JP Morgan as well as Bank of Nova Scotia(FRN callable Formosa).

As for zero-coupon callables, two non-Formosas popped up – a $50m 20y NC6 from DBS and a $15m 15y NC6 from RBC.

Meanwhile, simple fixed callable notes were quite active. For example, IBRD issued several 4y to 10y fixed callables ranging in size from $20m to $150m. Callables from a variety of banks were also fairly busy.  

Recent structured note activity

Zero-coupon callables and Formosas:

• Merrill Lynch sold a $30m 10y NC4 fixed callable Formosa. The EMTN matures May 2033, is callable annually from May 2027 and pays a 5.20% coupon. Lead is Shanghai Commercial and announced April 24.

   

• Credit Agricole sold a $70m 10y NC2 fixed callable Formosa. The EMTN matures May 2033, is callable annually from May 2025 and pays a 5.50% coupon. Self-led and announced April 20.

   

  Credit Agricole sold a $31m 10y NC5 fixed callable Formosa. The EMTN matures May 2033, is callable annually from May 2028 and pays a 5.08% coupon. Self-led and announced April 19.

   

  Credit Agricole sold a $50m 10y NC2 fixed callable Formosa. The EMTN matures May 2033 and is callable May 2025 and annually thereafter and pays 5.45%. Self-led. Announced Apr 17 (from week prior).

   

• JP Morgan sold a $22m 10y NC5 fixed callable Formosa. The EMTN matures May 2033, is callable annually from May 2028 and pays a 5.0% coupon. Lead Sinopac and announced April 18.

   

• Bank of Nova Scotia sold a $15m 10y NC4 floating callable Formosa. The EMTN matures May 2033 and is callable May 2027 and annually thereafter and pays 2y SOFR +1.6 %. Lead KGI. Announced Apr 17.

   

• DBS sold a $50m 20y NC6 zero coupon callable (non-Formosa). The EMTN matures Apr 2043, is callable annually from Apr 2029 and has an estimated IRR of 4.90%. Lead unconfirmed and announced April 19.

   

• Royal Bank of Canada sold a $15m 15y NC6 zero coupon callable (non-Formosa). The EMTN matures Apr 2038 and is callable annually starting Apr 2029. Self-led. Estimated IRR 5.7%. Announced Apr 19.

CMS steepeners:

• Goldman Sachs is working on a self-led CMS steepener maturing Apr 2038 NC2 that pays 10% for the first two years, then pays 25*(CMS2y/30y), capped at 8.5% and floored at zero. Domestic MTN.

Fixed and step-up callables:

• Bank of America is working on a self-led $17m step-up callable maturing Apr 2038 NC3 that pays 5% to Apr 2026, 5.25% to Apr 2030, 6% to Apr 2034 and 6.5% thereafter. Domestic MTN.

   

  Bank of America is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.4%. Domestic MTN.

   

  Bank of America is working on a self-led fixed callable maturing May 2026 NC6m that pays 5.55%. Domestic MTN.

   

  Bank of America is working on a self-led $20m step-up callable maturing Apr 2033 NC1 that pays 5.05% to Apr 2025, 5.5% to Apr 2028 and 6% thereafter. Domestic MTN.

   

• Bank of Montreal is working on a self-led fixed callable maturing Apr 2025 NC6m that pays 5.4%. Domestic MTN.

   

• Bank of Nova Scotia is working on a self-led fixed callable maturing Apr 2028 NC4 that pays 4.9%. Putable Oct 2023. EMTN.

   

  Bank of Nova Scotia is working on a self-led fixed callable maturing Apr 2030 NC5 that pays 5%. Putable Oct 2023. EMTN.

   

  Bank of Nova Scotia is working on a self-led fixed callable maturing Apr 2030 NC6 that pays 4.92%. Putable Oct 2023. EMTN.

   

  Bank of Nova Scotia is working on a self-led fixed callable maturing Apr 2028 NC3 that pays 5.05%. Putable Oct 2023. EMTN.

   

  Bank of Nova Scotia is working on a $50m fixed callable via Nomura maturing Apr 2028 NC2 that pays 5.35%. Putable Oct 2023. EMTN.

   

• Barclays is working on a self-led fixed callable maturing May 2026 NC3m that pays 5.25%. GMTN.

   

  Barclays is working on a self-led fixed callable maturing May 2033 NC2 that pays 5.5%. GMTN.

   

• CIBC is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.4%. GMTN.

   

  CIBC is working on a self-led fixed callable maturing May 2025 NC1 that pays 5.4%. GMTN.

   

• Citigroup is working on a self-led fixed callable maturing May 2028 NC1 that pays 4.95%. EMTN.

   

  Citigroup is working on a self-led fixed callable maturing May 2025 NC1 that pays 4.8%. EMTN.

   

  Citigroup is working on a self-led fixed callable maturing Apr 2033 NC18m that pays 5.4%. Domestic MTN.

   

  Citigroup is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 5.25%. Domestic MTN.

   

  Citigroup is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 5%. EMTN.

   

• Goldman Sachs is working on a self-led fixed callable maturing May 2033 NC1 that pays 5.65%. Domestic MTN.  

   

  Goldman Sachs is working on a self-led fixed callable maturing May 2027 NC1 that pays 5.5%. Domestic MTN.  

   

  Goldman Sachs is working on a self-led fixed callable maturing Jun 2024 NC6m that pays 5.35%. Domestic MTN.  

   

  Goldman Sachs is working on a self-led step-up callable maturing Apr 2030 NC1 that pays 5.375% to Apr 2025, 5.75% to Apr 2028, 6% to Apr 2029 and 7% thereafter. Domestic MTN.

   

  Goldman Sachs is working on a self-led fixed callable maturing Apr 2036 NC1 that pays 5.35%. Domestic MTN.  

   

  Goldman Sachs is working on a self-led fixed callable maturing Apr 2025 NC6m that pays 5.3%. Domestic MTN.  

   

  Goldman Sachs is working on a self-led fixed callable maturing May 2024 NC6m that pays 5.25%. Domestic MTN.  

   

• HSBC is working on a self-led $50m fixed callable maturing May 2028 NC1 that pays 5.2%. Eurodollar.

   

  HSBC is working on a self-led step-up callable maturing May 2024 NC6m that pays 4.7% to Nov 2023 and 4.8% thereafter. Eurodollar.

   

• IBRD is working on a $50m fixed callable via JPM maturing May 2027 NC6m that pays 5.12%. EMTN.

   

  IBRD is working on a $50m fixed callable via CACIB maturing May 2027 NC6m that pays 5.1%. EMTN.

   

  IBRD is working on a $20m fixed callable via BNPP maturing Apr 2033 NC1 that pays 5.5%. EMTN.

   

  IBRD is working on a $50m fixed callable via CACIB maturing Apr 2027 NC6m that pays 5.11%. EMTN.

   

  IBRD is working on a $150m fixed callable via WFS maturing May 2033 NC1 that pays 5.55%  GMTN.

   

  IBRD is working on a $50m fixed callable via WFS maturing May 2033 NC1 that pays 5.55%. GMTN.

   

• Jefferies is working on a self-led fixed callable maturing Oct 2033 NC1 that pays 6%. Domestic MTN.

   

• JP Morgan is working on a self-led $15m floating callable maturing Apr 2033 NC4 that pays O/N SOFR +1.09%. EMTN.

   

  JP Morgan is working on a self-led fixed callable maturing May 2026 NC1 that pays 5.25%. Domestic MTN.

   

  JP Morgan is working on a self-led fixed callable maturing Apr 2033 NC3 that pays 5.35%. Domestic MTN.   

   

  JP Morgan is working on a self-led fixed callable maturing May 2033 NC18m that pays 5.1%. Domestic MTN.  

   

• Royal Bank of Canada is working on a self-led fixed callable maturing May 2024 NC9m that pays 5.3%. EMTN.  

   

  Royal Bank of Canada is working on a self-led $15m fixed callable maturing Jul 2024 NC1 that pays 5.05%. EMTN.  

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Apr 2026 NC2 that pays 5.18%. GMTN.  

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Apr 2025 NC1 that pays 5.25%. GMTN.  

   

  Royal Bank of Canada is working on a self-led fixed callable maturing Apr 2028 NC2 that pays 5.25%. GMTN.  

   

• Standard Chartered is working on a self-led $31m fixed callable maturing Apr 2028 NC2 that pays 5.35%. EMTN.

   

• Societe Generale is working on a self-led fixed callable maturing Jul 2028 NC1 that pays 5.22%. EMTN.

   

• Toronto Dominion is working on a self-led fixed callable maturing Apr 2028 NC1 that pays 6%. GMTN.

   

  Toronto Dominion is working on a self-led fixed callable maturing Apr 2026 NC6m that pays 5.75%. GMTN.

   

• UBS is working on a self-led step-up callable maturing May 2024 NC6m that pays 4.92% to Nov 2023 and 4.92% thereafter. EMTN.

   

  UBS is working on a self-led fixed callable maturing May 2024 NC3m that pays 5.31%. EMTN. 

   

  UBS is working on a self-led fixed callable maturing Jul 2024 NC2m that pays 4.6%. EMTN. 

   

  UBS is working on a self-led $100m fixed callable maturing Jul 2024 NC2m that pays 6.25%. EMTN. 

   

  UBS is working on a self-led fixed callable maturing Jul 2024 NC1m that pays 6.28%. EMTN.

   

• Wells Fargo is working on a self-led step-up callable maturing Apr 2026 NC1 that pays 5.1% to Apr 2024, 5.3% to Apr 2025 and 5.7% thereafter. Domestic MTN.

   

  Wells Fargo is working on a self-led fixed callable maturing Apr 2028 NC18m that pays 5.15%. Domestic MTN.

   

• Ally Financial is working on a fixed callable via InspereX maturing May 2033 NC6m that pays 7%. Domestic MTN.

   

  Ally Financial is working on a fixed callable via InspereX maturing May 2026 NC6m that pays 6.55%. Domestic MTN.