Structures - USD
NBC came the first 30y ZC with an IRR above 5% this year. CMS activity sees duals, steepeners and CMS2y/30y negative barrier notes.
Formosas saw new prints on the fixed callable and CMS linked side. CMS dual rangers saw similar notes from DB, BofA and MS. Callables printed aplenty
Simple callable activity was high but ZC and CMS activity dropped off. Barclays examines the reasons behind the drop off in ZC volumes this year.
CTBC came with the first ZC Formosa for the month. GS, SocGen launch equity-linked CMS notes.
NAB and ADB came with larger ZCs this week, both non-Formosa. MS sold a small CMS linked Formosa and other CMS note activity was plentiful, led by UBS
CMS notes tied to the performance of CMS2y/30y saw activity this week, with UBS and SocGen among the most active. Only two ZCs came, from Barclays.
Smaller ZC non-Formosas saw activity from issuers such as MS, SocGen, UBS and ING. CMS-linked activity included notes from MS, UBS, JPM and GS.
Wells Fargo and Deutsche came with new ZCs, with IRRs well above 4%. Simple step-up and fixed callables were plentiful. CMS non-inversions see flows.
ZC callables saw some new activity led by Natixis, BNS and UBS. Nextera Energy sold a fixed Formosa. CMS dual rangers, non-inversions saw prints.
Societe Generale and Goldman Sachs launched several CMS dual rangers while ZC callable flows were waylaid.