USD MTNs: WFC 30y NC10 Formosa ZC; ZCs, callables pick up

Chart line 30 Jan 2023
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At nearly the half way point in the year, Wells Fargo sold the first ZC callable Formosa for 2023. Other ZCs, Formosas, CMS and callables print.

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  • WFC 30y NC10 Formosa ZC; ZCs, callables pick up  

  • Recent structured note activity

     

    WFC 30y NC10 Formosa ZC; ZCs, callables pick up   

    ZCs and Formosas were busy in the past week as underlying yields climbed higher and out of the recent range. Notably, at nearly at the half way into the year, Wells Fargo sold the first ZC callable Formosa for the year - a $25m zero coupon callable 30y NC10 Formosa.

     

    Other Formosas included a Merrill Lynch $60m fixed callable 10y NC2 and the issuer also sold a $25m 10y CMS-linked Formosa. In addition, BNP Paribas sold a $271m 5y FRN Formosa.

     

    Non-Formosa ZCs saw good activity. Rabobank sold a $50m 20y NC5,  JP Morgan sold a $50m 25y NC5,  Royal Bank of Canada came with a $15m 10y NC5 and lastly, ING Bank sold a $50m 5y NC1.

     

    Elsewhere, on the CMS side, Goldman Sachs launched a short dated CMS steepener while Royal Bank of Canada launched a 3y NC1 inverse FRN.

     

    As for fixed and step-up callables, SSAs were a notable highlight as IBRD continued to sell a number of 10y fixed callables while Asian Development Bank, EBRD and KfW also were busy, with the latter in the 20y maturity.

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • Wells Fargo sold a $25m zero coupon callable 30y NC10 Formosa. The EMTN matures May 2053, is callable annually from May 2033 and has an estimated IRR of 6.06%. Leads KGI and Yuanta. Announced May 22.

       

    • ING Bank sold a $50m zero coupon callable 5y NC1 (non-Formosa). The EMTN matures May 2028, is callable annually from May 2024 and has an estimated IRR of 5.59%. Lead N/A. Announced May 23.

       

    • Merrill Lynch sold a $60m fixed callable Formosa 10y NC2. The EMTN matures Jun 2033, is callable annually from Jun 2025 and pays a 5.6% coupon. Leads are Bank of Taiwan, KGI and Yuanta. Announced May 19.

       

      Merrill Lynch sold a $25m 10y CMS-linked Formosa. The EMTN matures Jun 2033 and pays USD 1y CMS + 160bps floored at 0%. Leads are E.Sun and First Commercial. Announced May 22.

       

    • BNP Paribas sold a $271m 5y FRN Formosa. The EMTN matures Jun 2028 and pays O/N SOFR + 130bps. Leads BNPP, CTBC, E Sun, Mega, President, Sinopac, Taishin, Yuanta. Announced May 23.

       

    • Rabobank sold a $50m zero coupon callable 20y NC5 (non-Formosa). The EMTN matures May 2043, is callable annually from May 2028 and has an estimated IRR of 5.15%. Lead is Deutsche Bank. Announced May 19.

       

    • JP Morgan sold a $50m 25y NC5 zero coupon callable (non-Formosa). The EMTN matures May 2048 and is callable annually starting May 2028. Self-led. Estimated IRR 4.95%. Announced May 16.

       

    • Royal Bank of Canada sold a $15m 10y NC5 zero coupon callable (non-Formosa). The EMTN matures May 2033 and is callable annually starting May 2029. Self-led. Estimated IRR 5.125%. Announced May 17.

     

    CMS steepeners:

     

    • Goldman Sachs is working on a self-led CMS steepener maturing May 2025 NC1 that pays 6*(CMS2y/10y -25bps) +2%. EMTN.

     

    Inverse FRNs:

     

    • Royal Bank of Canada is working on a self-led inverse FRN maturing Jun 2026 NC1 that pays 7% for the first year, then pays 6*(3.9%-CMS10y), floored at zero. EMTN. 

     

    Fixed, floating and step-up callables:

     

    • Asian Development Bank is working on a $20m fixed callable via Nomura maturing Jun 2033 NC3 that pays 4.8%. EMTN.

       

      Asian Development Bank is working on a $20m fixed callable via Deutsche maturing Jun 2033 NC3 that pays 4.7%. EMTN.

       

      Asian Development Bank is working on a $20m fixed callable via WFS maturing Jun 2033 NC3 that pays 4.55%. GMTN.

       

    • Bank of America is working on a self-led step-up callable maturing Jun 2038 NC3 that pays 5.2% to Jun 2026, 5.75% to Jun 2030, 6% to Jun 2034 and 6.5% thereafter. Domestic MTN.

       

    • Bank of Montreal is working on a self-led fixed callable maturing May 2027 NC6m that pays 5%. CD format. Domestic.

       

    • Citigroup is working on a self-led $14m fixed callable maturing May 2033 that pays 5.22%. EMTN.

       

      Citigroup is working on a self-led fixed callable maturing May 2033 NC18m that pays 5.35%. Domestic MTN.

       

      Citigroup is working on a self-led $22m fixed callable maturing May 2033 NC4 that pays 5.22%. EMTN.

       

      Citigroup is working on a self-led fixed callable maturing May 2033 NC1 that pays 5.4%. Domestic MTN.

       

      Citigroup is working on a self-led fixed callable maturing May 2026 NC1 that pays 5%. Domestic MTN.

       

    • EBRD sold a $25m fixed callable 10y NC2. The GMTN matures Jun 2033, is callable annually from Jun 2025 and pays a 4.95% coupon. Lead is WFS and announced May 19.  

       

    • Deutsche is working on a self-led fixed callable maturing May 2024 callable Jun 2023 that pays 5.65%. Eurodollar. 

       

      Deutsche Bank sold a $80m fixed callable 20y NC5. The EMTN matures May 2043, is callable annually from May 2028 and pays a 6.287% coupon. Self-led and announced May 19.

       

      Deutsche is working on a self-led $279m FRN callable maturing Dec 2029 NC5 that pays O/N SOFR +281bps. Coupon paid quarterly from Dec 2028 if not called. EMTN.

       

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

       

    • IBRD is working on a $12m fixed callable via Nomura maturing Jun 2033 NC1 that pays 5.7%. EMTN. Announced May 23.

       

      IBRD is working on a $10m fixed callable via Barclays maturing May 2033 NC1 that pays 5.55%. EMTN.

       

      IBRD is working on a $25m fixed callable via SocGen maturing May 2033 NC1 that pays 5.53%. EMTN.

       

      IBRD is working on a $25m fixed callable via CACIB maturing May 2033 NC2 that pays 4.86%. EMTN. Announced May 17.

       

      IBRD is working on a $20m fixed callable via CACIB maturing May 2033 NC3 that pays 4.55%. EMTN.

       

    • Jefferies is working on a self-led fixed callable maturing May 2026 NC1 that pays 6%. Domestic MTN.   

       

    • JP Morgan is working on a self-led fixed callable maturing May 2028 callable Feb 2027 that pays 4%. Domestic MTN.

       

      JP Morgan is working on a self-led $30m fixed callable maturing May 2033 NC2 that pays 5.45%. EMTN.

       

    • KfW is working on a $50m fixed callable via JPM maturing May 2043 NC4 that pays 4.612%. EMTN.

       

    • Morgan Stanley is working on a self-led step-up callable maturing Nov 2025 NC1 that pays 4.9% to May 2024, 5% to May 2025 and 5.25% thereafter. CD format. Domestic.

       

      Morgan Stanley is working on a self-led step-up callable maturing May 2027 NC3m that pays 5% to May 2025, 5.25% to May 2026 and 5.5% thereafter. CD format. Domestic.

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing May 2028 NC1 that pays 5.25%. GMTN.

       

      Royal Bank of Canada is working on a self-led fixed callable maturing May 2038 NC3 that pays 5.45%. GMTN.

       

    • Santander is working on a self-led fixed callable maturing May 2026 NC1 that pays 1.1%. Eurodollar.

       

    • Societe Generale is working on a self-led $25m floating callable maturing May 2028 callable Feb 2028 that pays O/N SOFR +120bps. Eurodollar.

       

    • Standard Chartered is working on a $40m fixed callable maturing May 2033 NC4 that pays 5.18%. EMTN.

       

    • Toronto Dominion is working on a self-led $250m fixed callable maturing Nov 2023 NC3m that pays 5.47%. CD format. Domestic.

       

    • UBS is working on a self-led fixed callable maturing Jun 2024 NC3m that pays 5%. EMTN.

       

      UBS is working on a self-led step-up callable maturing May 2024 NC6m that pays 5.06% to Nov 2023 and 5.07% thereafter. EMTN.

       

      UBS is working on a self-led $10m fixed callable maturing May 2024 NC6m that pays 5.7%. EMTN.

       

      UBS is working on a self-led fixed callable maturing May 2024 NC6m that pays 5.15%. EMTN.

       

    • Wells Fargo is working on a self-led step-up callable maturing May 2026 NC1 that pays 5.2% to May 2024, 5.45% to May 2025 and 5.75% thereafter. Domestic MTN.

       

      Wells Fargo is working on a self-led fixed callable maturing May 2033 NC2 that pays 5.5%. Domestic MTN.

       

      Wells Fargo is working on a self-led fixed callable maturing May 2030 NC1 that pays 5.35%. Domestic MTN.

       

    • Dow Chemical is working on a fixed callable via InspereX maturing Jun 2028 NC6m that pays 4.8%. Domestic MTN.  

       

      Dow Chemical is working on a fixed callable via InspereX maturing Jun 2033 NC6m that pays 5.3%. Domestic MTN.  

       

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

       

    • Ally Financial is working on a fixed callable via InspereX maturing Jun 2033 NC6m that pays 7.35%. Domestic MTN.  

       

      Ally Financial is working on a fixed callable via InspereX maturing Jun 2025 NC6m that pays 6.95%. Domestic MTN.  

     

    Putables:

     

    • ELM BV is working on a $50m putable note via UBS maturing May 2025 and putable Jun 2023 that pays 5%. Credit linked to Doha Bank. Repackaging note. EMTN. 

     

    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 4.9% to May 2024, then pays 5.05%, and 5.1%, stepping up annually. Domestic MTN.

     

     

     

     
     
     
     

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