Structures - USD
This past week saw the second corporate Formosa zero-coupon callable of the year as AT&T sold a $2.995bn 30y NC5 fixed callable Formosa.
Verizon came with a $2.385bn 40y NC5, the first fixed callable Formosa by a corporate this year. ZCs resumed with just under $1bn in total.
Supply and viral fatigue weighed on haven assets. FRA-OIS spreads stabilized after recent tightening. Heavy Formosa issuance continued.
It has not been your typical post-lunar new year with the virus-induced volatility in the markets over the past week. As a result, ZCs have been slow
Just over $1bn in ZCs came on the screens before CNY break, bringing the YTD total to $6.374bn. However, as IRRs have dropped, the outlook is unclear
Zero-coupon callable activity saw $1.235bn over the past week, of which $940m came in 40y Formosas. YTD in ZC activity is now $5.3bn.
Swap spreads are tighter as FIG issuers arrive. MS FICC surges. Brevan sees assets rise and trims its long. Formosa drivers.
$2.695bn in 30y and 40y ZC callables inundated the market in the past week, with $2.055bn Formosas and $640m non-Formosas. The total YTD is $4bn.
The New Year has brought forth a torrent of zero-coupon callables. In total, $1.349bn has printed thus far in a mix of 30y and 40y.
Structured note activity over the past week saw decent follow through activity from the previous week in both zero-coupon callables and dual rangers