USD MTNs: DBS, CACIB ZCs; CMS steepeners

Container ship at sea above 25 MAr 2021
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DBS Bank and Credit Agricole led new ZCs (non-Formosa). CMS steepeners saw pick up in activity, with new notes from Merrill, BNPP, JPM and Barclays.

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  • DBS, CACIB ZCs; CMS steepeners   

  • Recent structured note activity

     

    DBS, CACIB ZCs; CMS steepeners   

    Zero-coupon callables (non-Formosa) saw some activity over the past week, led by $50m 20y NC5 ZC from DBS Bank and a $50m 15y NC9 from Credit Agricole .

     

    Elsewhere, CMS steepeners saw several notes this week, with maturities ranging from 2y to 15y. Issuers included JP Morgan, BNP Paribas, Barclays and Merrill Lynch. Most of the notes are on the CMS2y/10y curve and callable after a year with leverage anywhere from 5x to 12x, though the Merrill note is on CMS2y/30y and is callable after 7ys.  

     

    As for plain vanilla fixed and step-up callables, Barclays and JP Morgan were amongst the most active while Standard Chartered continues to issue very short-dated credit-linked callables.  

     

     

    Recent structured note activity

     

    Zero-coupon callables and Formosas:

     

    • DBS Bank sold a $50m 20y NC5 zero coupon callable (non-Formosa). The EMTN matures Aug 2043, is callable annually from Aug 2028 and has an estimated IRR of 5.55%. Lead unconfirmed and announced Aug 7.

       

    • Credit Agricole sold a $50m 15y NC9 zero coupon callable (non-Formosa). The note matures Aug 2038, is callable annually from Aug 2032 and has an estimated IRR of 6.02%. Self-led and announced Aug 4. 

       

    • Credit Agricole sold a 10y NC1 zero-coupon callable (non-Formosa). The EMTN matures Aug 2033 and is callable starting Aug 2026 and every year thereafter. Self-Led. Announced Jul 31.

       

    • UBS sold a $5m 10y NC1 zero-coupon callable (non-Formosa). The EMTN matures Aug 2033 and is callable starting Aug 2024 and every year thereafter. Self-Led. Announced Aug 3.

     

    CMS steepeners:

     

    • Barclays is working on a self-led CMS steepener maturing Aug 2033 NC1 that pays a fixed TBD coupon for the first year, then pays 6*(CMS2y/10y), floored at zero. EMTN.

       

    • Merrill Lynch is working on a self-led $15m CMS steepener maturing Aug 2038 NC7 that pays 9.61% for the first three years, then pays 7*(CMS2y/30y), floored at zero. EMTN.

       

    • JP Morgan is working on a self-led CMS steepener maturing Aug 2028 NC1 that pays 7% for the first two years, then pays 12*(CMS2y/10y), floored at zero. Eurodollar.

       

    • BNP Paribas is working on a self-led CMS steepener maturing Aug 2025 NC1 that pays 6% for the first year, then pays 5*(CMS2y/10y), floored at zero. EMTN.

     

    Step-up and fixed callables:

     

    • Bank of America is working on a self-led step-up callable maturing Aug 2038 NC3 that pays 5.6% to Aug 2029, 6% to Aug 2034 and 6.5% thereafter. Domestic MTN.

       

      Bank of America is working on a self-led fixed callable maturing Aug 2028 NC1 that pays 5.8%. Domestic MTN.

       

      Bank of America is working on a self-led fixed callable maturing Aug 2033 NC2 that pays 5.8%. Domestic MTN.

       

    • Bank of Montreal is working on a self-led fixed callable maturing Aug 2026 NC6m that pays 5.85%. Domestic MTN.

       

    • Barclays is working on a self-led fixed callable maturing Sep 2024 NC6m that pays 5.75%. GMTN.

       

      Barclays is working on a self-led fixed callable maturing Aug 2033 NC3 that pays 5.8%. GMTN.

       

      Barclays is working on a self-led fixed callable maturing Aug 2043 NC3 that pays 5.75%. GMTN.

       

      Barclays is working on a self-led fixed callable maturing Aug 2026 NC1 that pays 5.8%. GMTN.

       

      Barclays is working on a self-led fixed callable maturing Aug 2030 NC2 that pays 5.75%. GMTN.

       

    • BNP Paribas sold a $8m 15y NC8 fixed callable. The EMTN matures Aug 2038, is callable once in Aug 2031 and pays a 5.75% coupon. Self-led and announced Aug 7.

       

      BNP Paribas is working on a self-led fixed callable maturing Jul 2028 NC3 that pays 7%. Credit linked. EMTN.

       

    • CIBC is working on a self-led fixed callable maturing Aug 2028 NC1 that pays 5.8%. GMTN.

       

    • Citigroup is working on a self-led floating callable maturing Aug 2030 NC3m that pays 2y SOFR. EMTN.

       

      Citigroup is working on a self-led fixed callable maturing Aug 2025 NC1 that pays 5.14%. EMTN.

       

    • Credit Agricole is working on a self-led $50m fixed callable maturing Aug 2026 NC2 that pays 6%. EMTN.

       

      Credit Agricole is working on a self-led $30m Green fixed callable maturing Aug 2038 NC5 that pays 5.96%. EMTN. 

       

      Credit Agricole is working on a self-led $20m fixed callable maturing Aug 2028 NC2 that pays 5.85%. EMTN.

       

    • Credit Industriel et Commercial is working on a self-led $10m fixed callable maturing Aug 2026 NC2 that pays 5.79%. EMTN.

       

    • Deutsche is working on a self-led fixed callable maturing Jun 2026 NC1 that pays 6.07%. Credit-linked. EMTN. 

       

    • Goldman Sachs is working on a self-led fixed callable maturing Aug 2028 NC3 that pays 5.7%. Domestic MTN.

       

    • HSBC is working on a self-led step-up callable maturing Feb 2025 NC1 that pays 4.6% to Feb 2024, 4.65% to Aug 2024 and 4.7% thereafter. Eurodollar.

       

      HSBC is working on a self-led fixed callable maturing Aug 2028 NC1 that pays 6.02%. Eurodollar.

       

      HSBC is working on a self-led $30m fixed callable maturing Aug 2028 NC3m that pays 5.83%. Eurodollar.

       

    • IBRD is working on a $7m fixed callable via Nomura maturing Aug 2033 NC1 that pays 6.05%. EMTN. 

       

    • JP Morgan is working on a self-led fixed callable maturing Aug 2026 NC1 that pays 4.2%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Aug 2026 NC1 that pays 4.3%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing May 2033 NC2 that pays 6%. Domestic MTN.

       

      JP Morgan is working on a self-led fixed callable maturing Aug 2026 NC1 that pays 4.3%. EMTN.

       

      JP Morgan is working on a self-led fixed callable maturing Aug 2026 NC1 that pays 4.2%. EMTN.

       

      JP Morgan is working on a self-led fixed callable maturing Aug 2025 NC1 that pays 5.55%. EMTN.

       

    • Morgan Stanley is working on a self-led step-up callable maturing Aug 2038 NC2 that pays 5.625% to Aug 2033 and 6.25% thereafter. Domestic MTN.

       

    • Nomura is working on a self-led fixed callable maturing Aug 2028 NC1 that pays 5.5%. EMTN.

       

    • Royal Bank of Canada is working on a self-led fixed callable maturing Sep 2025 callable May 2024 that pays 5.65%. GMTN. 

       

      Royal Bank of Canada is working on a self-led fixed callable maturing Aug 2038 NC5 that pays 5.6%. GMTN.

       

    • Societe Generale is working on a self-led fixed callable maturing Aug 2028 NC6m that pays 6%. Domestic MTN. 

       

    • Standard Chartered is working on a self-led fixed callable maturing Jul 2024 NC1m that pays 7.77%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led fixed callable maturing Feb 2024 NC1m that pays 8.99%. EMTN. Credit linked.

       

      Standard Chartered is working on a self-led fixed callable maturing Aug 2025 NC1m that pays 5.58%. Credit linked. EMTN.  

       

      Standard Chartered is working on a self-led fixed callable maturing Feb 2024 NC1m that pays 7.85%. Credit linked. EMTN. 

       

      Standard Chartered is working on a self-led fixed callable maturing Sep 2023 NC1m that pays 8.08%. Credit linked. EMTN. 

       

      Standard Chartered is working on a self-led fixed callable maturing Nov 2023 NC1m that pays 6.49%. Credit linked. EMTN. 

       

      Standard Chartered is working on a self-led fixed callable maturing Sep 2023 NC1m that pays 11%. Credit linked. EMTN.

       

    • UBS is working on a self-led $10m fixed callable maturing Aug 2024 NC6m that pays 5.88%. EMTN.

       

      UBS is working on a self-led $10m fixed callable maturing Aug 2025 NC1 that pays 6.03%. EMTN.

       

      UBS is working on a self-led step-up callable maturing Aug 2024 NC6m that pays 5.3% to Feb 2024 and 5.4% thereafter. EMTN.   

       

    • Wells Fargo is working on a self-led step-up callable maturing Aug 2033 NC1 that pays 5.75% to Aug 2024, 5.9% to Aug 2025 and 6.2% thereafter. Domestic MTN.

       

      Wells Fargo is working on a self-led fixed callable maturing Aug 2028 NC1 that pays 5.9%. Domestic MTN.

       

      Wells Fargo is working on a self-led fixed callable maturing Aug 2033 NC2 that pays 5.9%. Domestic MTN.  

       

    • Ford Motor Credit is working on a fixed callable via InspereX maturing Aug 2030 NC1 that pays 6.65%. Domestic MTN.  

       

      Ford Motor Credit is working on a fixed callable via InspereX maturing Aug 2027 NC1 that pays 6.45%. Domestic MTN.  

       

    • Verizon Communications is working on a fixed callable via InspereX maturing Aug 2030 NC1 that pays 5.2%. Domestic MTN.  

       

      Verizon Communications is working on a fixed callable via InspereX maturing Aug 2053 NC1 that pays 5.8%. Domestic MTN.  

       

    • Dow Chemical is working on a fixed callable via InspereX maturing Aug 2028 NC6m that pays 5.05%. Domestic MTN.  

       

      Dow Chemical is working on a fixed callable via InspereX maturing Aug 2033 NC6m that pays 5.45%. Domestic MTN.  

       

      Dow Chemical is working on a fixed callable via InspereX maturing Aug 2053 NC6m that pays 6.05%. Domestic MTN.  

       

    • Ally Financial is working on a fixed callable via InspereX maturing Aug 2033 NC6m that pays 7.3%. Domestic MTN. 

     

    Extendibles:

     

    • Royal Bank of Canada is working on a self-led USD extendible with initial maturity Aug 2026 and then extendible to Aug 2028 that pays 5.64%. Domestic MTN.

       

    • Toronto Dominion is working on a self-led USD extendible with initial maturity Aug 2024 and then extendible to Aug 2028 that pays 5.75% for the first year, then pays 5.95%, 6.15%, 6.35% and 6.55%, stepping up annually. Domestic MTN.

     

     

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