USD New Issues: Resting before the post-Labor Day deluge

Matrix 9 Nv 2020
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IG new issuance (ex-SSA) recorded sub $5bn last week and not much is expected this week ahead of the post-Labor Day rush.

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  • Resting before the post-Labor Day deluge

  • New issues

  • Recent issues

     

    Resting before the post-Labor Day deluge  

    A scant $3.45bn priced in the past week in IG new issuance (ex-SSA) - under the $5bn that had been the modest forecast for the week. Similarly, not much is expected this coming week in the run up to the Labor Day weekend. The August month to date currently stands at $67.5bn – well under the $85bn that had been forecast. On the SSA side, last week saw robust activity from SSA issuers - EIB, DBK, ADB, Kommunalbanken and JFM - that priced a total of $10.6bn.

     

    Week over week, IG corporate spreads narrowed 4bps to 123bps while high yield spreads tightened 12bps to 390bps, according to the ICE BofA Masters Index.

     

    Ahead, for the month of September, surveys forecast around $120bn for the month. Compared to 2022, the expected volume is lower than last year’s forecast of $145bn for September - which ultimately proved to be way above the actual $78.6bn seen that month. Still, the day after Labor Day in 2022 saw the largest day of the year for 2022 with a whopping $35bn. Sources expect that this year will see the same seasonal front loading for the first days in September post-Labor Day - though perhaps not in all one day. 

     

     

    Recent issues

     

    • Aug 24: JFM priced a $750m 3y at swaps +62bps. Leads are Barclays (B&D), BNPP, Daiwa and GS. A1/A+.

       

    • Aug 23: Pacific Life Global Funding II priced a $600m 3y FA-backed note. Leads GS, JPM, MS and WFS.  Aa3/AA-/AA-. +88bps.

       

    • Aug 23: Kommunalbanken priced a $1.25bn 5y at mid swaps +44bps. Leads are BMO, Nomura, Scotia and TD.

       

    • Aug 23:ADB priced a $4bn 5y Global at swaps +35bps via Barclays, BofA, Citi and JPM.

       

    • Aug 23: Bank of Communications HK priced a $500m 3y Green FRN at SOFR +60bps. Leads Bank of Comms, CA and HSBC.

       

    • Aug 22: Charles Schwab priced a $2.35bn 2-part ($1bn 3y and $1.35bn 11y NC10). Leads BofA, Citi, GS, JPM, MS and WFS. A2/A-/A. +115bps and +180bps. It dropped plans for a 3y FRN.

       

    • Aug 22:DBJ priced a $600m 3y sustainability deal via Barclays, Citi, GS and MIZ.  A1/A.  Launched at MS +62bps.

       

    • Aug 22: EIB priced a $4bn 5y Global. Leads BMO, Citi (B&D) and RBC.  Mid swaps +33bps.

       

    • Aug 21: Pricoa Global priced a $500m 3y FA backed. Leads Barclays, BNPP, DB and WFS. Aa3/AA-/AA-. +88bps.

       

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