July ends with a bang; Robust volumes
IG new issuance priced $34.6bn in the past week, well above the roughly $20bn expected. Monday month end for July saw $19.5bn, the highest volume day since June 5th. Wednesday was also a busy session as $12.2bn priced, including a $5bn 4-part from Wells Fargo.
Week over week, IG corporate spreads widened 3bps to 122bps while high yield spreads widened 19bps to 401bps, according to the ICE BofA Masters indexes.
For the coming week, surveys forecast around $30bn. Today is seeing Yankee FIGs ANZ, HSBC and BNP Paribas come in the markets along with new domestic FIG issuance from Goldman Sachs. Elsewhere, a 4-part from Thermo Fisher and 2-parts from Williams and Caterpillar are also on the docket for today.
Month to date for August is just above $15bn thus far, with around $85bn anticipated for the month, sources say. July ended with $88.2bn – boosted by the last day of supply – and was above the $75bn expected.
- BNP Paribas plans a USD Perpetual NC5 AT1 at around 8.625%. Self-led.
- ANZ NZ plans a USD benchmark 5y bond at USTs +145bps via ANZ, Citi, HSBC and JPM. A1/AA-/A+.
- HSBC plans to sell a two tranche, USD-denominated TLAC bond consisting of a 4y NC3 at around USTs +170bps and a 4y NC3 FRN at SOFR equivalent via HSBC. A3/A-/A+.
- Goldman Sachs plans a $TBA 2-part (3y NC2 fixed to FRN and 3y NC2 FRN). Self-led. A2/BBB+/A. Price talk +125bps and SOFR equivalent.
- Caterpillar Financial plans a $TBA 2-part (2y fixed and 2y FRN). Leads BofA, Citi and MUFG. A2/A/A+. Price talk +60bps and SOFR equivalent.
- Williams Co. plans a $TBA 2-part (short 3y and 5y). Leads CIBC, MUFG, RBCCM and TD. Baa2/BBB/BBB. Price talk +110bps and +145bps area.
- Thermo Fisher plans $TBA 4-part (3y, 7y, 10y and 20y). Leads BNPP, Citi, GS and Mizuho. A3/A-/BBB+. Price talk +70bps, +110bps, +125bps and 130bps.
- San Diego Gas and Electric is working on a 5y Green FMB. Lead CACIB. A1/A/A. Price talk +115bps area.
- Sixth Street Specialty Lending plans a $300m 5y. Leads BofA, JPM and SMBC. Baa3/BBB-/BBB. Price talk +320bps area.
- Aug 3: Public Service Electric & Gas priced a $900m 2-part ($500m 10y and $400m 30y FMBs). Leads Mizuho, Scotia, TD and WFS. A1/A. +103bps and +115bps.
- Aug 3:New York State Electric & Gas priced a $750m 2-part ($350m 5y and $400m 10y). Leads BNPP, MUFG (B&D), MS, Santander and Scotia. Baa1/A-/A-. +140bps and +168bps.
- Aug 3: PACCAR Financial priced a $600m 2-part ($300m 3y and $300m 5y). Leads MUFG, ING, SMBC, TD and USB. A1/A+. +50bps and +70bps.
- Aug 2: Columbia Pipelines Operating priced a $4.6bn 5-part ($750m 7y, $1.5bn 10y, $600m 20y, $1.25bn 30y and $500m 40y). Leads Citi, JPM, Mizuho and TD. Baa1/BBB+. +175bps, +1955bps, +212.5bps, +235bps and +252bps.
- Aug 2: Columbia Pipelines HoldCo priced a $1bn 2-part ($300m 3y and $700m 5y). Leads Citi, JPM, Mizuo and TD. Baa2/BBB+. +150bps and +180bps.
- Aug 2: Wells Fargo priced a $5bn 4-part ($2bn 2y, $400m 2y FRN, $2.2bn 3y and $400m 3y FRN). Self-led. Aa2/A+/AA. +72bps, SOFR +80bps, +92bps and SOFR +106bps.
- Aug 2: Daimler Truck Finance priced a $1.6bn 3-part ($600m 2y, $500m 5y and $500m 10y). Leads GS, JPM, MUFG, SMBC and Scotia. A3/BBB+. +73bps, +118bps and +150bps.
- Aug 2: Huatai Securities (Baa1) priced a $800m 3y. Leads BOC, Bank of Communications, HSBC (B&D), Huatai and ICBC. +75bps.
- Aug 1: Booz Allen Hamilton priced a $650m 10y. Leads BofA and JPM. Baa3/BBB-. +203bps.
- Jul 31: Lloyds Bank priced a $2bn 2-part ($1.5bn 4y NC3 fixed and $500m 4y NC3 FRN). Leads Barclays, HSBC, JPM and Scotia. A3/BBB+/A. +148bps and SOFR +156bps.
- Jul 31: Santander priced a $3.5bn 2-part ($1.5bn 5y senior pref and $2bn 10y sub). Leads BofA, Citi, GS, HSBC, JPM, Jefferies, MS, RBC, Santander, TD and WFS. A2/A+/A on 5y and Baa2/BBB+/BBB on 10y. +140bps and +295bps respectively.
- Jul 31: Mercedes Benz priced a $3.5bn 5-part ($700m 2y, $400m 2y FRN, $750m 3y, $900m 5y and $750m 10y). Leads BNPP, Citi, JPM, Mizuho, MUFG, Santander and SMBC. +52bps, SOFR +57bps, +72bps, +95bps, +115bps.
- Jul 31: B.A.T. International Finance priced a $5bn 5-part ($1bn 5.5y, $1bn 7y, $1.25bn 10y, $750m 20y, $1bn 30y). Baa2/BBB+. +175bps, +225bps, +245bps, +285bps, +305bps.
- Jul 31: State Street priced a $1.5bn 2-part ($1.2bn 3y fixed and $300m 3y FRN). Lead MS. A1/A/AA-. +75bps and SOFR +84.5bps.
- Jul 31: Invitation Homes Operating priced a $88m 2-part ($450m 7y and $350m 10y). Leads Citi, JPM and MS. Baa3/BBB/BBB. +158bps and +173bps.
- Jul 31: Norfolk Southern priced a $1.6bn 2-part ($600m 7y and $1bn long 30y). Leads BofA, MS and WFC. Baa1/BBB+. +102bps and +137bps.
- Jul 31: Xcel Energy priced a $800m 10y. Leads Barclays, BofA, PNC and WFS. Baa1/BBB+/BBB+. +153bps.
- Jul 31: Consumers Energy priced an upsized $500m long 5y FMB. A1/A. Leads MUFG, RBCCM and WFC. +75bps. Upsized from $350m.
- Jul 31: GS Caltex priced a $300m 5y. Leads CA, HSBC, JPM and Mizuho. Baa1/BBB. +128bps.