Structures - USD
Structured note activity slowed down amid the underlying squeezy rally in USTs. ZCs included a large Barclays Formosa, late to the screens.
ZC callable supply saw a rebound from the week prior, with some of the new ZCs coming on the screens belatedly. A pair of $80m 30y CMS dual rangers.
CMS dual rangers saw a bevy of $40m 15y dual rangers while GS was active in fixed callables going into month end. Formosa activity was limited.
ZCs saw barely any new supply, a steep drop from the week prior. JPM comes with a CMS quanto. Citigroup launches a trio of CMS steepeners.
ZC callables saw just over $900m in new supply, of which over $500m were Formosa. CMS dual rangers also saw strong supply totaling $400m.
$510m in initial notional new ZCs came in the past week, led by issuance from UBS, MS and Santander. CMS dual rangers were also fairly active.
ZC flows dropped in the final week of April and total volumes for the month ended just under $3bn. CMS steepeners were active, led by GS and Citigroup
ZC callable supply zipped higher, with $1.58bn coming in 30y and 40y maturities, and the bulk Formosas. Dual CMS rangers remain active.
CMS dual rangers came back with a vengeance this past week, with a total of $625m in new dual rangers launched. ZC callables see very little supply.
Yields are a touch high as risk assets gain. Banks gauge Formosa issuance in 2020. JPM and GS confirm first quarter FICC gains