USD New Issues: Volumes trend lower, but busy ahead of FOMC

Fed spring 10 Jun 2020
Just over $34bn priced last week - above the forecast of $30bn. Today sees a busy slate with several multi-tranches as issuers get ahead of the FOMC.

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  • Volumes trend lower, but busy ahead of FOMC

  • New issues

  • Recent issues


    Volumes trend lower, but busy ahead of FOMC  

    $34.15bn priced in IG new issuance (ex-SSA) in the past week, exceeding the $30bn forecast. The week started off with a bang as issuers got ahead of the mid-week CPI release with eleven issuers coming both Monday and Tuesday for $10.95bn and $19.05bn, respectively. In comparison, Wednesday and Thursday only saw a total of $3bn each. Issuance for the week was led by a $8.5bn 4-part by BofA.  


    Week over week, IG corporate spreads narrowed 3bps to 122bps while high yield spreads dropped 6bps to 379bps, according to the ICE BofA Masters indexes.


    For the coming week, around $17.5bn is expected for the week - likely front-loaded as issuers come in advance of the FOMC mid-week, sources say. Indeed, today is off to a strong start as several multi-tranches have announced, including a 4-part from Hyundai, and two 3-parts from UBS and Bank of Montreal.   


    Meanwhile, month to date currently stands at $89.7bn or around $30bn shy of the $120bn forecast for September.



    New issues


    • Hyundai Capital plans a four-tranche USD benchmark bond (3y FRN, 3y, 5y and 7y fixed)  issue via BNPP, BofA, HSBC, JPM, Lloyds and MUFG. Baa1/BBB+. Price talk SOFR equivalent, +145bps, +185bps and +210bps area.  


    • UBS plans a three-tranche USD benchmark bond issue consisting of 4.25yNC3.25, 6yNC5 and 11yNC10 tranches. Price talk is +175, +200 and +220bps respectively.


    • Bank of Montreal is working on a $TBA 3-part (2y, 2y FRN and 5y). Leads BMO, BofAML, GS, JPM and SocGen. A2/A-/AA-. Price talk +105bps, SOFR equivalent and +145bps area.   


    • AerCap Ireland plans a $TBA 2-part (long 3y and 7y). Leads BNPP, BofA, JPM, Mizuho and Sancap.Baa2/BBB/BBB. Price talk +180bps and +230bps area.


    • Enbridge is working on a $TBA 2-part (60y NC5 fixed to fixed and a 60y NC10 fixed to fixed). Leads MS, RBC, Barclays, Citi and JPM. Baa3/BBB-/BBB-. Price talk 8.625% and 8.875%. Coupon for 60y NC5 steps up at year 10 at initial credit spread +25bps, then year 25 at initial credit spread +100bps. Coupon for 60y NC10 steps up at year 10 at initial credit spread +25bps, then year 30 at initial credit spread +100bps.     


    • TTX is working on a $300m (no grow) 3y. Leads BofA, Citi and JPM. A/A. Price talk +90bps area.


    • Interstate Power and Light plans a $300m (no grow) 10y. Leads BofA, Mizuho, MUFG, USB and WFS. Baa1/A-. Price talk +165bps area.


    • NStar Electric is working on a $150m (no grow) 5y. Leads BofA, GS, RBCCM. TD and PNC. A1/A/A+. Price talk +130bps area.


    • Public Service Co. of New Hampshire plans a $300m (no grow) 10y FMB fixed.Leads BofA, GS, PNC, RBCCM and TD. A1/A+/A+. Price talk +130bps area.   


    • The Sydney-based NBN Corp plans a USD 144A 5y and/or 10y bond issue via BofA, Citi, JPM and MUFG.


    • UAE is working on a $TBA 10y. Leads ADCB, BNPP, Citi, NBD IB, FAB, GS, HSBC, MASHBK and Mizuho. Aa2/AA-. Price talk +60bps.  


    • LG Energy plans a 144A Green bond including 3y at +100bps and 5y at +130bps. Via BofA, Citi, MS, Standard Chartered and KDB. Baa1/BBB+.


    • FWD Group plans a 10y benchmark 10y, 144A bond at around +290bps via HSBC, JPM, Mizuho, MS and Standard Chartered. Baa2/BBB+.


    • World Bank is working on a $TBA 5y sustainable. Leads Barclays, Citi, HSBC and Nomura. Aaa/AAA. Price talk SOFR MS +35bps area. Expected to price tomorrow.   


    Recent issues


    • Sep 14: Corebridge Global Funding priced a $500m 5y FA-backed benchmark via JPM and USB.  A2/A+.  +150bps.


    • Sep 14:Retail Opportunity Investments Partnership LP priced a $350m 5y deal via BofA, JPM, PNC and WFS.  Baa3/BBB-/BBB.  +245bps.


    • Sep 14:Citigroup priced a self-led $1.5bn PerpNC5 benchmark.  Ba1/BB+/BBB-. 7.625%.


    • Sep 14: Bangkok Bank (Baa1/BBB+) priced a $1.25bn 2-part ($500m 5y and $750m 10y)  at Treasuries +98bps and +128bps. Leads are Citi, HSBC, JPM and MS (B&D).


    • Sep 14: Korea Southern Power (Aa2/AA-) priced a $300m 3y at Treasuries +90bps. Via Citi (B&D), Mizuho and Nomura.


    • Sep 13: Sierra Pacific Power Co. priced a $400m 30y deal via BofA, JPM, MIX, RBC and TSI.  A2/A+.  +160bps.


    • Sep 13: Marriot International priced a $1.15bn 2-part ($450m 3y and $700m 5y). Leads BofA, GS, PNC and USB.  Baa2/BBB.  +100bps, +130bps.


    • Sep 13: CenterPoint Energy Houston Electric priced a $500m 5y deal via MUFG, PNC, RBC, Scotia and TD.  A2/A/A. +85bps.


    • Sep 12: American Tower priced a $1.5bn 2-part ($750m 5y and $750m 10y) benchmarks via Barclays, MIZ, RBC, SocGen and TD.  Baa3/BBB-/BBB+.  +142bps, +167bps.


    • Sep 12: Bank of America priced a $8.5bn self-led 4-part ($1.5bn 4NC3 fixed-to-FRN, $500m 4y NC3 FRN, $2.75bn 6y NC5 fixed-to-FRN and $3.75bn 11y NC10 fixed-to-FRN).  A1/A-/AA-.  +120bps, SOFR +135bps, +140bps and +160bps.


    • Sep 12: Intuit priced a $4bn 4-part ($750m 3y, $750m 5y, $1.25bn 10y and $1.25bn 30y). Leads BofA, JPM and MS.  A3/A-. +55bps, +75bps, +100bps, +120bps. 


    • Sep 12: KBC Group priced a $1bn 11y NC10 at Treasuries +205bps. Leads are BNPP, Barclays, GS, JPM and KBC.


    • Sep 12: Vistra Operations priced a $650m 10y Secured at Treasuries +270bps. Leads are BMO, Citi and Mizuho.  


    • Sep 12: Nissan Motor (Baa3/BBB-) priced a $1bn 2-part ($300m 3y and $700m 5y). Leads are BofA (B&D), Mizuho, SocGen, USB and WFS. +225bps and +265bps area.


    • Sep 12: Horace Mann priced a $300m 5y deal via JPM and PNC.  +287.5bps. Baa2/BBB/BBB.


    • Sep 12: Brooklyn Union Gas priced a $400m 10y deal via BNPP, JPM and NatWest.  Baa2/BBB+/BBB+.  +212bps.


    • Sep 12: Monongahela Power priced a $400m 10y FMB deal via MS, PNC and RBC.  A3/A-/A-. +160bps.


    • Sep 12: Corebridge Financial priced a $500m 10y benchmark via Citi and JPM.  Baa2/BBB+/BBB+.  +183bps.


    • Sep 12: New York Life priced a $650m FA-backed 3y at Treasuries +73bps. Leads are Barclays, BofA, Citi and MS. Aaa/AA+/AAA. It dropped plans for a 3y FRN.


    • Sep 12:  TSKB priced a $300m 5y Sustainability bond at 9.5%. Leads are ABKGCO, BNPP, Citi (B&D), Commerzbank, ING, MS, SMBC Nikko and StanChart. B3/B-.


    • Sep 12: Slovenia (A3/AA-) priced a $1bn 10y at Treasuries +80bps through Barclays, BNPP, Citi, DB, GS and JPM.  Books above $2.2bn.


    • Sep 12: IDB Invest priced a $500m 5y Global at swaps +54bps. Leads are BofA, Citi, Nomura and TD. Aa1/AA+/AAA.


    • Sep 12: CADES priced a $4bn 3y Social bond at swaps +34bps. Leads are BNPP, CA, DB and JPM.


    • Sep 11: Nevada Power priced a $500m long 30y. Leads BofA, JPM, Mizuho, RBCCM and TSI. A2/A+. +163bps.


    • Sep 11: T-Mobile priced a $2bn 2-part ($1bn long 10y and $1bn long 30y). Leads Citi, MS, RBCCM and WFS. Baa2/BBB/BBB+. +148bps and +163bps.


    • Sep 11: Veralto Corporation priced a $2.1bn 3-part ($700m 3y, $700m 5y, $700m 10y). Leads MS, Citi, BofA, Barclays, BNPP. +80bps, +95bps and +120bps.


    • Sep 11: Maersk priced a $750m 10y Green. Leads Barclays, Citi, HSBC, JPM and MS. Baa2/BBB+. +165bps.


    • Sep 11: CNH Industrial priced a $500m 6y. Leads JPM, RBCCN, Santus, WFC. Baa2/BBB/BBB+.  +122bps.


    • Sep 11: Mohawk Industries priced a $600m 5y benchmark. Leads BAC, JPM and Mizuho. Baa1/BB+/BBB+.  +145bps. 


    • Sep 11: BBVA priced a $1bn perpetual NC6y bond at 9.375% via Barclays, BBVA, BofA, HSBC, MS and SocGen. Ba2/BB.


    • Sep 11: Patterson-UTI priced a $400m 10y. Leads GS, USB and WFC. Baa3/BBB-/BBB-. +290bps.


    • Sep 11: ABN Amro priced a $1.75bn 2-part SNP ($1.25bn 4y NC3 fixed and $500m 4y NC3 FRN). Leads ABNUS, Citi, GS, MS, TD, WFS. Baa1/BBB/A. +165bps and SOFR +178bps.


    • Sep 11: Marvell Technology priced a $1bn 2-part ($500m long 5y and $500m 10y). Leads BofA, JPM and WFS. Baa3/BBB-/BBB-.+140bps and +175bps.     


    • Sep 11: Southern Co. priced a $500m 10y. Leads BofA, Citi, MUFG and Scotia. Baa1/BBB+/BBB+.  +148bps.


    • Sep 11: Santos priced a $850m 10y 144A bond at +265bps via Citi, Deutsche, Mizuho and RBC. Baa3/BBB-/BBB.


    • Sep 11: KEXIM priced a $2bn 3-part ($500m 2y, $1bn 5y and a $500m 10y). Leads BofA, Deutsche, Mizuho, Nomura, SocGen and Standard Chartered.  Aa2/AA/AA-. +45bps, +75bps and +95bps. 


    • Sep 11: Bank of China Dubai priced a $500m 3y Green. Lead Credit Agricole. A1/A/A. SOFR +60bps.