Primary Debt Capital Markets-$10.5b Raised by 8 IG Issuers-Mischler Comment
May 10, 2017   //   by Mischler MarCom   //   Debt Market Commentary  

Quigley’s Corner 05.09.17 – Costco, Capital One, BNY & Entergy Arkansas Among 8 Issuers That Tap Day’s Primary Debt Capital Markets


Investment Grade New Issue Re-Cap

Today’s IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates This Week and May

Entergy Arkansas Establishes a New Curve

The ETR 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 May 3rd          

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


8 IG Corporate issuers announced deals today pricing 14 tranches between them totaling $10.52b.  The day’s highest volume deals came from Costco’s 4-part, Capital One’s 3-part and BNY Mellon’s 2-part but today’s Deal-of-the-Day belongs to Entergy Arkansas’ $220mm tap of its outstanding 3.50% FMBs due 4/01/2026.  You know what that means!  If I’m writing about it, Mischler was on it to the tune of a 4% active Co-Manager role


  • The IG Corporate WTD total is now more than 74.00% of this week’s syndicate midpoint average forecast or $23.32b vs. $31.37b.
  • MTD we’ve now priced just over 50.00% of the IG Corporate mid-range syndicate projection for May or $62.288b vs. $123.42b.
  • There are now 7 IG Yankee and/or SSA new issues in the IG credit pipeline.
  • The all-in IG Corporate plus SSA MTD total is now $63.938b.


The session’s Deal of the Day belongs to Entergy Arkansas that executed a $220mm tap of its outstanding 3.50% First Mortgage Bonds due 4/01/2026 thru active joint leads Bank of America/Merrill Lynch, J.P. Morgan and Wells Fargo and passive joint lead Stephens.  Co-Managers on the transaction along with Mischler Financial, the nation’s oldest Service Disabled Veteran broker dealer were BNY Mellon and Williams Capital.

Before I take the deep dive into Entergy Arkansas’ relative value study and Diversity and Inclusion story, let’s first re-cap today’s IG Primary Markets and briefly review the Global Re-Cap.


Today’s IG Primary & Secondary Market Talking Points


  • Sammons Financial Group Inc. upsized today’s 144a/REGS 10-year Senior Notes new issue to $500mm from $300mm 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 14 IG Corporate-only new issues was <19.57> bps.
  • BAML’s IG Master Index tightened 1 bp to +120 versus +121.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.15.
  • Standard & Poor’s Investment Grade Composite Spread tightened 1 bp to +162 versus +163.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $16.4b on Monday versus $13.7b on Friday and $16.2b the previous Friday.
  • The 10-DMA stands at $16.7b.


Global Market Recap


  • U.S. Treasuries – Supply is putting pressure on USTs Weak 3yr auction today.
  • Overseas Bonds – Down day for bonds in Japan & Europe. Supply was a factor.
  • Stocks – Mixed & little changed. S&P’s and NASDAQ traded at all-time highs.
  • Overseas Stocks – Japan red, China green, Hang Seng strong & Europe green.
  • Economic – JOLTS data was solid.
  • Overseas Economic – Weak earnings data in Japan and Europe was mixed.
  • Currencies – USD outperformed all of the Big 5.
  • Commodities – Crude oil, gold & silver back to their losing ways.
  • CDX IG: -0.25 to 62.06
  • CDX HY: +0.30 to 328.80
  • CDX EM: +0.51 to 198.59

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

-Tony Farren


Syndicate IG Corporate-only Volume Estimates This Week and May


IG Corporate New Issuance This Week
vs. Current
WTD – $23.32b
May 2017
vs. Current
MTD – $62.288b
Low-End Avg. $30.54b 73.36% $122.27b 50.94%
Midpoint Avg. $31.37b 74.34% $123.42b 50.47%
High-End Avg. $32.21b 72.40% $124.56b 50.01%
The Low $25b 93.28% $100b 62.288%
The High $41b 56.88% $150b 41.53%


Entergy Arkansas Establishes a New Curve with $220mm 3.50% tap due 4/01/2026 – The ETR Deal Dashboard
How Entergy Powers Life

Entergy does not merely stand alone in the way their wonderful Treasury/Funding Team evolves its new issuance for all of its subsidiaries and Holdco.  In terms of the power industry let’s take a look at how Entergy truly does live up to its corporate slogan when it says “We Power Life” –

  • Entergy employs nearly 13,000 people.
  • Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power.
  • Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
  • Entergy supplies natural gas to approximately 199,000 customers in Baton Rouge and New Orleans.
  • The Entergy transmission system is comprised of approximately 15,700 circuit miles of transmission lines operated at 69 kV to 500 kV and approximately 1,500 substations. The transmission system spans portions of Arkansas, Louisiana, Mississippi, Missouri and Texas, covering 114,000 square miles.
  • Entergy is a Fortune 500 company with revenues of approximately $10.8 billion.
  • Entergy celebrated its 100th birthday in 2013.


It doesn’t stop at those impressive data points rather it continues in the wonderful ways Entergy supports our service member men and women who are willing to make the ultimate sacrifice for our great nation. Hopefully you all read in last evening’s ”QC” my CEO’s message about how Team Mischler will once again commemorate Memorial Day by honoring those willing to make the ultimate sacrifice in our U.S. military.  As the nation’s oldest Service Disabled Veteran broker dealer we take our Co-Manager roles seriously as well as our commitment to giving back to of our men and women in uniform.  We give 10% of what we make to heavily vetted service focused foundations and other causes.  We really do folks! It’s part of our shred ethos here at Team Mischler.  So, too does Entergy Corp, the Holdco and its myriad Opcos. Entergy realizes the sacrifice our men and women in uniform make and as a result, Entergy is committed top/down to creating and enforcing other leading initiatives specifically for the military.

Let’s take a look:

Entergy is a Military-Friendly Employer

Entergy’s business is only as good as its people, and at Entergy, they are fortunate to work with some of the best in the business. This includes employing thousands of veterans and those currently serving in the U.S. Armed Forces across its businesses. These dedicated, disciplined and skilled employees provide a diverse perspective that is a strategic advantage for Entergy’s business, and the Company implements programs and initiatives to promote an inclusive culture for them.

Entergy’s executive leadership team and representatives of its Veterans Employee Resource Group recently accepted the 2016 Pro Patria Award from the U.S. Department of Defense’s Employer Support of the Guard and Reserve.

In 2015 Entergy organized a Veterans Employee Resource Group, an employee-led group coordinated across the company, to help achieve its mission to create sustainable value for its stakeholders — owners, customers, employees and the communities in which the utility operates — by capturing veteran-employee input on programs such as recruiting, on-boarding, retention, work/life balance and leadership development. 14% of Entergy employees are veterans of the U.S. Armed Forces! That’s good stuff readers! You see! It’s not just about the deal.  It’s a much broader and even more meaningful initiative at the Company!

Veteran Compensation and Reemployment
Serving your country should never come at the expense of job security. Entergy’s military leave and pay policies comply with all federal and state laws regarding the rights of uniformed service members, and its uniformed service members are also eligible for differential payments under Entergy’s Military Leave Policy. This pay supplements an employee’s military pay so that he/she does not suffer a loss in pay while engaged in military service. And those called away for duty can rest assured regarding their reemployment with Entergy following military leave. For service that does not exceed five years, these employees are eligible to be reemployed in either the position they were in prior to service, or a position they would have attained of like seniority, status and pay.

In 2016, Entergy won the 2016 Pro Patria Award from the U.S. Department of Defense’s Employer Support of the Guard and Reserve for promoting supportive work environments for members of the National Guard and Reserve. And among 2,400 nominees, Entergy was also named one of the 30 finalists for the 2016 Secretary of Defense Employer Support Freedom Award, the highest recognition given by the Department of Defense’s Employer Support of the Guard and Reserve.


Below please find my synopsis of the Entergy Arkansas transaction, and 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


Entergy Arkansas Establishes a New Curve with $220mm 3.50% tap due 4/01/2026 – The ETR Deal Dashboard

Above is the opening extract from Quigley’s Corner aka “QC”  Tuesday May 09 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: 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.

Quigley’s Corner 05.09.17 – Costco, Capital One, BNY & Entergy Arkansas Among 8 Issuers That Tap Day’s Primary Debt Capital Markets