USD New Issues: Slower pace amid seasonal drop

Long winding road 6 DEc 2021
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IG new issuance saw $13.8bn price last week with volume more than halved versus the week prior. Month to date is now $64bn vs. $85bn expected.

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  • Slower pace amid seasonal drop  

  • New issues

  • Recent issues

     

    Slower pace amid seasonal drop    

    $13.78bn priced in IG new issuance (ex-SSA) in the past week, well off the pace seen the week earlier that saw $35bn cross the finish line. The seasonal summer slowdown is in full swing, sources judge, with the eye at post-Labor Day to bring back higher volumes ahead.

     

    IG corporate spreads widened 5bps to 127bps week over week, while high yield spreads widened 19bps to 402bps, according to the BofA ICE Masters indexes.

     

    Today sees Pricoa Global announcing a 3y FA-backed along with two SSAs that are due to price tomorrow (an EIB 5y and a DBJ 3y sustainable). Month to date for August currently stands at $64bn, or $21bn shy of the expected $85bn for the month - and achieving that is increasingly looking like a tough ask, sources say, with only around $5bn expected this week. 

     

     

    New issues

     

    • Pricoa Global plans a $TBA 3y FA backed. Leads Barclays, BNPP, DB and WFS. Aa3/AA-/AA-. Price talk +110bps area.

       

    • European Investment Bank (EIB) is working on a $TBA 5y. Leads BMO, Citi and RBCCM. Aaa/AAA/AAA. Price talk mid swaps +35bps. Expected to price tomorrow.

       

    • Development Bank of Japan (DBJ) plans a $TBA 3y sustainable. Leads Barclays, Citi, GS and Mizuho. Price talk mid swaps +67bps. Expected to price tomorrow.
       

     

    Recent issues

     

    • Aug 16: Apollo priced a $600m 30NC5 resettable junior sub-note deal via BofA, MS, UBS and WFS.  A3/BBB/BBB+. 7.625%.

       

    • Aug 16: Assured Guaranty US Holding priced an upsized $350m 5y deal via BofA and GS.  Baa1/A.  +185bps. Upsized from $300m.

       

    • Aug 15: PNC Financial priced a $750m 11y NC10 benchmark via Barclays, BofA and PNC.  A3/A-/A.  +173bps.

       

    • Aug 15: Alexander Funding Trust II priced a $500m 5y benchmark via BofA, BMO, JPM, MIZ and RBC.  Baa3/BBB-/BBB-.  +310bps.

       

    • Aug 15: Jacobs priced a $600m 5y benchmark via BofA, BNPP, JPM and WFS.  Baa2/BBB-.  +200bps.

       

    • Aug 14: PBF Energy priced a $500m 7y NC3 note 7.875% due 2030. Leads are BofA, Barclays, Citi, GS, MUFG, PMC, Rabo, REG SMBC, Truist, USB and WFS.

       

    • Aug 14: Continuum Energy Aura Pte (CGEL) priced a $450m 3.5y Secured Green bond. Leads are Citi, DB, ENBD, HSBC, JPM and StanChart.

       

    • Aug 14: Goldman Sachs Group priced a $1.5b n 1000k par perp NC5. Ba1/BB+/BBB-. 7.5%. Self-led.

       

    • Aug 14: Bank of America NA priced a $5bn 4-part ($2bn 2y, $400m 2y FRN, $2bn 3y and $600m 3y FRN). Self-led. Aa1/A+/AA. +70bps, SOFR +78bps, +90bps and SOFR +102bps.

       

    • Aug 14: FiServ priced a $2bn 2-part ($700m 5y and $1.3bn 10y). Leads BofA, PNC, TFC, WFC. +108bps and +155bps. 

       

    • Aug 14: Entergy Arkansas priced a self-led $300m 10y FMB. A2/A. Leads KeyBanc, Citi, JPM and Steph. +120bps.

       

    • Aug 14: Huntington Bancshares priced $1.25bn 6y NC5 at +185bps. Leads are Citi, HBAN, JPM and MS (B&D). Baa1/BBB+/A-.

       

    • Aug 14: Otis priced $750m 5ys through BofA, Citi and GS. Baa1/BBB. +98bps.

       

    • Aug 14: Chile Electricity Lux MPC priced a $784.25m 9.5y (WAL 6y) fixed benchmark. A2/A. Leads GS, ITAB and JPM. +165bps.

     

     

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