USD MTNs: CMS linked; Bank callables
CMS linked; Bank callables
CMS linked notes saw a couple of new notes this past week. Barclays launched a 15y NC2 CMS steepener EMTN that pays 10% for the first two years, then pays 35*(CMS2y/30y), capped at 9% and floored at zero. Meanwhile, Royal Bank of Canada launched a 3y NC1 inverse FRN EMTN that pays 7% for the first year, then pays 6*(4%-CMS10y).
Formosas did not see any prints other than a JP Morgan sold a $40m 5y NC3 FRN callable Formosa that came late to the screens as it was announced the week prior on April 21st. Zero-coupon callables were also similarly quiet with no new ZCs announced.
As for simple fixed callables, activity was led by banks such as Goldman Sachs, JP Morgan and Royal Bank of Canada.
Recent structured note activity
Zero-coupon callables and Formosas:
- JP Morgan sold a $40m 5y NC3 FRN callable Formosa. The EMTN matures May 2028 and is callable May 2026 and the year thereafter and pays a coupon of O/N SOFR +100bps. Leads JPM, KGI, Sinopac. Announced Apr 21.
CMS steepeners:
- Barclays is working on a self-led CMS steepener maturing May 2038 NC2 that pays 10% for the first two years, then pays 35*(CMS2y/30y), capped at 9% and floored at zero. EMTN.
CMS Inverse FRNs:
- Royal Bank of Canada is working on a self-led CMS inverse FRN linked note maturing May 2026 NC1 that pays 7% to May 2024, then pays 6*(4%-CMS10y), floored at zero. EMTN.
Step-up and fixed callables:
- Bank of America is working on a self-led step-up callable maturing May 2030 NC1 that pays 5.1% to May 2025, 5.5% to May 2028 and 6% thereafter. Domestic MTN.
- Bank of Montreal is working on a self-led fixed callable maturing May 2025 NC6m that pays 5.3%. Domestic MTN.
- Barclays is working on a self-led fixed callable maturing May 2029 NC5 that pays O/N SOFR+170bps. EMTN.
- CIBC is working on a self-led fixed callable maturing May 2027 NC1 that pays 5%. GMTN.
- Citigroup is working on a self-led $100m fixed callable maturing May 2025 NC1 that pays 5%. EMTN.
Citigroup is working on a self-led fixed callable maturing May 2028 NC1 that pays 4.8%. EMTN.
- Goldman Sachs is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.4%. Domestic MTN.
Goldman Sachs is working on a self-led fixed callable maturing May 2026 NC6m that pays 5.4%. Domestic MTN.
Goldman Sachs is working on a self-led fixed callable maturing May 2025 NC6m that pays 5.35%. Domestic MTN.
Goldman Sachs is working on a self-led fixed callable maturing May 2033 NC18m that pays 5.5%. Domestic MTN.
Goldman Sachs is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.6%. Domestic MTN.
Goldman Sachs is working on a self-led fixed callable maturing Jun 2024 NC6m that pays 5.25%. Domestic MTN.
- IBRD sold a $50m 15y NC3 fixed callable. The EMTN matures May 2038, is callable annually once in May 2025, and pays a 4.85% coupon. The note is led by Nomura and was announced Apr 26.
- JP Morgan is working on a self-led fixed callable maturing May 2025 NC6m that pays 5.25%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.2%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing May 2027 NC6m that pays 5.25%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.45%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing May 2026 NC6m that pays 5.1%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing May 2025 NC6m that pays 5.15%. Domestic MTN.
JP Morgan is working on a self-led fixed callable maturing Jun 2024 NC6m that pays 5.1%. Domestic MTN.
- Morgan Stanley is working on a self-led fixed callable maturing May 2033 NC2 that pays 5%. Domestic MTN.
- Royal Bank of Canada is working on a self-led fixed callable maturing Nov 2024 NC1 that pays 5.03%. EMTN.
Royal Bank of Canada is working on a self-led fixed callable maturing Jun 2024 NC9m that pays 5.15%. EMTN.
Royal Bank of Canada is working on a self-led fixed callable maturing May 2025 NC1 that pays 5.1%. GMTN.
Royal Bank of Canada is working on a self-led fixed callable maturing May 2030 NC2 that pays 5.25%. GMTN.
- Societe Generale is working on a self-led fixed callable maturing May 2025 NC6m that pays 5%. Domestic MTN.
- Swedish Export Credit is working on a $50m fixed callable via JPM maturing May 2026 NC6m that pays 5.3%. EMTN.
- Toronto Dominion is working on a fixed callable via TD and BofA maturing May 2027 NC6m that pays 5.4%. GMTN.
- UBS is working on a self-led fixed callable maturing May 2025 NC3m that pays 5.4%. Domestic MTN.
UBS is working on a self-led fixed callable maturing May 2026 NC6m that pays 5.25%. Domestic MTN.
UBS is working on a self-led fixed callable maturing May 2024 NC3m that pays 5.2%. Domestic MTN.
- Verizon Communications is working on a fixed callable via InspereX maturing May 2030 NC1 that pays 4.65%. Domestic MTN.
- Dow Chemical is working on a fixed callable via InspereX maturing May 2053 NC6m that pays 5.6%. Domestic MTN.
Dow Chemical is working on a fixed callable via InspereX maturing May 2033 NC6m that pays 4.95%. Domestic MTN.
Dow Chemical is working on a fixed callable via InspereX maturing May 2028 NC6m that pays 4.5%. Domestic MTN.
- Ally Financial is working on a fixed callable via InspereX maturing May 2033 NC6m that pays 7.1%. Domestic MTN.
Ally Financial is working on a fixed callable via InspereX maturing May 2026 NC6m that pays 6.6%. Domestic MTN.
Extendibles:
- Bank of Montreal is working on a self-led USD extendible with initial maturity Nov 2023 and then extendible to May 2026 that pays 5.2% to May 2024, then pays 5.35% and 5.5%, stepping up annually. Canadian.
Bank of Montreal is working on a self-led CAD extendible with initial maturity May 2024 and then extendible to May 2030 that pays 4.92%. Canadian.
- Toronto Dominion is working on a self-led USD extendible with initial maturity May 2024 and then extendible to May 2025 that pays 5.3%. Domestic MTN.