IG Corporate Debt Issuance Avalanche-Mischler Debt Market Commentary
May 3, 2017   //   by Mischler MarCom   //   Debt Market Commentary  

Quigley’s Corner 05.02.17- IG Corporate Debt Issuance Avalanche; $16.6b Floated by 8 Issuers

 

Investment Grade New Issue Re-Cap – An Avalanche of Issuance

Today’s IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates This Week and April

Barclays PLC $2b 11NC10 LT2 Subordinated Notes Deal Dashboard

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending April 26th         

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

I wrote this last Friday to close out my Best and Brightest commentary:

“Bankers man your stations and syndicate managers get ready because the best story in our wounded world is Corporate America. Next week, however, will feature a couple very congested days given that the U.K., EU, China and Australia are closed on Monday in observance of EU Labor Day; there’s FOMC Wednesday and an NFP Friday ahead.  So, not much on those days but it should make for a crowded Tuesday and Thursday.”

Today, Tuesday lived up to the billing.  The IG Corporate DCM hosted 8 issuers across 21 tranches totaling $16.675b in volume.  No help came the SSA space as it wisely stood down.

  • The IG Corporate WTD total is now 73.5% of this week’s syndicate midpoint average forecast or $21.025b vs. $28.58b.
  • MTD we’ve now priced nearly 17% of the IG Corporate mid-range syndicate projection for April or $21.025b vs. $123.42b.
  • Meanwhile the IG pipeline is building with 8 IG Yankee and SSA new issues lining up and either ready to go, road showing or conducting investor calls.
    (Please scroll way below for the New Issue Pipeline).

Of all those transactions the one nearest and dearest to our nation’s oldest Service Disabled Veteran broker dealer was Barclays PLC’s first subordinated callable issue.  That is my featured Deal-of-the-Day and you know what that means – Mischler served as an active Co-Manager on the transaction.  First let’s get to the re-caps – both primary and global – and then it’s onto BACR!

Thanks for tuning in and remember, Corporate America IS the defacto best story going in our inextricably linked global economy and new world order.

Today’s IG Primary & Secondary Market Talking Points

  • Mid-America Apartments LP upsized today’s 10-year Senior Unsecured Notes new issue to $600mm from $450mm at the launch and at the tightest side of guidance.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 21 IG Corporate-only new issues was <18.31> bps.
  • BAML’s IG Master Index was unchanged at +123.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.16.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +164.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $12b on Monday versus $16.2b on Friday and $16.1b the previous Monday.
  • The 10-DMA stands at $16.6b.

Global Market Recap

 

  • U.S. Treasuries – USTs traded with a bid today on Trump, crude oil & vehicle sales.
  • Overseas Bonds – JGB’s lost ground. Europe closed mixed with more red than green.
  • 3mth Libor – set at 1.17372% the highest since 4/1/09.
  • Stocks – Mixed heading into the last 15 minutes of trading.
  • Overseas Stocks – Asia closed with gains except China. Europe had a good day.
  • Economic – Vehicle sales were weak. ADP & FOMC Statement tomorrow.
  • Overseas Economic – PMI’s in China & Japan were weaker. Europe PMI’s were strong.
  • Currencies – USD better vs. Yen & CAD, weaker vs. the Euro & Pound and unchanged vs. the AUD.
  • Commodities – Terrible day for crude oil.
  • CDX IG: -0.17 to 63.21
  • CDX HY: +0.50 to 324.17
  • CDX EM: -4.41 to 190.71

*CDX levels are as of 3:30PM ET today.

-Tony Farren

 

Syndicate IG Corporate-only Volume Estimates This Week and April

 

IG Corporate New Issuance This Week
5/01-5/05
vs. Current
WTD – $21.025b
May 2017
Forecasts
vs. Current
MTD – $21.025b
Low-End Avg. $27.96b 75.20% $122.27b 17.20%
Midpoint Avg. $28.58b 73.57% $123.42b 17.04%
High-End Avg. $29.21b 71.98% $124.56b 16.88%
The Low $20b 105.12% $100b 21.02%
The High $36b 58.40% $150b 14.02%

Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.

Have a great evening!
Ron Quigley, Managing Director, Head of Fixed Income Syndicate

Barclays PLC $2b 11NC10 LT2 Subordinated Notes Deal Dashboard

Above is the opening extract from Quigley’s Corner aka “QC”  Tuesday May 02 2017 edition distributed via email to institutional investment managers and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans.

Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”, the QC observations is one of three distinctive research content pieces produced by Mischler Financial Group. The QC is a daily synopsis of everything Syndicate and Secondary as seen from the perch of our fixed income trading and debt capital markets desk and includes a comprehensive “deep dive” with optics on the day’s investment grade corporate debt new issuance and secondary market data encompassing among other items, comparables, investment grade credit spreads, new issue activity, secondary market most active issues, and upcoming pipeline.

To receive Quigley’s Corner, please email: rkarr@mischlerfinancial.com or via phone 203.276.6646

*Sources: Bank of America/Merrill Lynch, Bloomberg, Bond Radar, Dow Jones Newswire, IFR, Informa Global Markets, Internal Mischler, LCDNews, Market News International, Prospect News, Standard & Poor’s Ratings Services, S, Thomson Reuters and of course, a career of sources, contacts, movers and shakers from syndicate desks to accounts; from issuers to originators; from academicians to heads of research, and a host of financial journalists, et al.

Mischler Financial Group’s “U.S. Syndicate Closing Commentary”  is produced daily by Mischler Financial Group. No part of this document may be reproduced in any manner without the permission of Mischler Financial Group. Although the statements of fact have been obtained from and are based upon sources Mischler Financial Group believes reliable, we do not guarantee their accuracy, and any such information may be incomplete.  All opinions and estimates included in this report are subject to change without notice.  This report is for informational purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security.   Veteran-owned broker-dealer Mischler Financial Group, its affiliates and their respective officers, directors, partners and employees, including persons involved in the preparation of this report, may from time to time maintain a long or short position in, or purchase or sell a position in, hold or act as market-makers or advisors or brokers in relation to the securities (or related securities, financial products, options, warrants, rights, or derivatives), of companies mentioned in this report or be represented on the board of such companies. Neither Mischler Financial Group nor any officer or employee of Mischler Financial Group or any affiliate thereof accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.

IG Corporate Debt Issuance Avalanche-Mischler Debt Market Commentary