Browsing articles tagged with "FIGs Archives - Mischler Financial Group"
FIGs Lead Day’s DCM Funding; Gulf Power Co “Deal-of-the-Day”- Mischler Comment
May 2017      Debt Market Commentary   

Quigley’s Corner 05.15.17 FIGs Lead DCM Funding; Southern Co’s Gulf Power Building The Future of Energy 

 

Investment Grade Corporate Debt 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

Building the Future of Energy – Gulf Power Co. $300mm 3.30% Senior Notes due 5/30/2027

Answering Another Call of Duty: Southern Company’s Commitment to the Military – Pride. Duty. Honor. Discipline.

A Reiteration of Mischler’s 2017 Memorial Day Month Pledge

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 10th         

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

 

12 IG Corporate issuers announced deals today pricing 16 tranches between them totaling $13.50b.  There was no SSA activity in the session. The day’s highest volume deals came from two FIGs namely HSBC Holdings Plc and Wells Fargo that each printed a $3 billion transaction.  Additionally, today’s IG dollar DCM featured a total of four 2-part transactions from ANZ Banking Group Ltd., ANZ Banking Group NY Branch, BPCE and Manufacturers & Traders Trust.  However, the session’s Deal-of-the-Day belongs to Southern Company’s subsidiary Gulf Power Co. that issued a $300mm 3.30% due 5/30/2027.  You know what that means!  If it’s a Deal-of-the-Day, I’m writing about it; and if I’m writing about it, it means Mischler Financial, the nation’s oldest Service Disabled Veteran broker dealer served on the deal as an active 3.00% Co-Manager.

Let’s first run through today’s IG primary market tally and re-caps before we take the deep dive into the Gulf Power deal.

  • The IG Corporate WTD total is now over 45% of this week’s syndicate midpoint average forecast or $13.50b vs. $29.73b.
  • MTD we’ve now priced nearly 70% of the IG Corporate mid-range syndicate projection for May or $86.138b vs. $123.42b.
  • There are now 8 IG Yankee and/or SSA new issues in the IG credit pipeline.
  • The all-in IG Corporate plus SSA MTD total is now $93.538b.

 

Today’s IG Primary & Secondary Market Talking Points

 

  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 16 IG Corporate-only new issues was <18.67> bps which includes the Dominion Energy Inc. remarketing.
  • BAML’s IG Master Index was unchanged at +118.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.12.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +162 versus +161.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $14.7b on Friday versus $17.9b on Thursday and $13.7b the previous Friday.
  • The 10-DMA stands at $16.7b.

 

Global Market Recap

 

  • S. Treasuries – Small losses in very light volume.
  • Overseas Bonds – JGB’s were mixed. Long end in EU core & semi core struggled.
  • Stocks – Bid heading into close. S&P’s and NASDAQ traded at all-time highs.
  • Overseas Stocks – Asia better, expected small loss for Nikkei. FTSE & DAX reach all-time highs.
  • Economic – Empire manufacturing weaker. NAHB housing stronger. Full calendar tomorrow.
  • Overseas Economic – Japan PPI YoY highest since November, 2014. Weaker data in China.
  • Currencies – Back-to-back down days for the DXY Index.
  • Commodities – CRB, crude oil, gold, copper & silver higher. Down day for wheat.
  • CDX IG: -0.83 to 61.78
  • CDX HY: -2.56 to 324.66
  • CDX EM: -3.40 to 190.85

*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
5/15-5/19
vs. Current
WTD – $13.50b
May 2017
Forecasts
vs. Current
MTD – $86.138b
Low-End Avg. $28.69b 47.05% $122.27b 70.45%
Midpoint Avg. $29.73b 45.41% $123.42b 69.79%
High-End Avg. $30.77b 43.87% $124.56b 69.15%
The Low $20b 67.50% $100b 86.138%
The High $40b 33.75% $150b 57.43%

 

Answering Another Call of Duty: Southern Company’s Commitment to the Military – Pride. Duty. Honor. Discipline.

Southern Company knows that veterans are the foundation of military service and of the utility Company. After they have served their nation, Southern Company seeks and encourages veterans to turn their military training into an opportunity to serve its 4.5 million customers.

Veterans are a natural fit for Southern Company because the cultures of the military and the utility industry are very similar – both exemplify dedication, commitment to safety, teamwork and excellence in all they do. This is why many veterans who have joined Southern Company are not just participants, but leaders, in the company.

Veterans currently account for 10% of Southern Company’s employees. The company’s military recruitment and development efforts have earned Southern Company a designation as the highest-ranked utility on G.I. Jobs’ Top 100 Military Friend Employers list for six consecutive years. The company has also been recognized as a Top 10 Company for Veterans by DiversityInc., a Most Valuable Employer by CivilianJobs and a Best for Vets Employer by Military Times EDGE.

Additionally, Southern Company is a founding partner of Troops to Energy Jobs program, supports the Joining Forces initiative, participates annually in more than 30 military recruitment events and partners with military transition centers across the country. Today, Southern Company and its subsidiaries including Gulf Power co. are the only electric utilities in the nation to partner with the U.S. Army, U.S. Navy, U.S. Marine Corps and U.S. Air Force to develop innovative energy projects both on and off base.

Navy Veteran Helps Recruit Top Veteran Talent

jamal-jessie southern co

Jamal Jessie

Veteran and Southern Company military recruiter Jamal Jessie says he views the U.S. Military as the best military in the world, so when he transitioned from a 20-year career with the U.S. Navy to civilian life in 2015, it only made sense to work for one of the best companies for veterans.

It was Southern Company’s ranking among GI Jobs Top 100 Military Friendly Employers that led Jamal there.

As Jamal tells it, “As a recruiter for the Navy, my scope of responsibility was vast. The leadership opportunities and the opportunity to build relationships set me up for success not only in the Navy but also now at Southern Company. I connected with and built relationships with people within the Navy and in the community, and that’s similar to what I do now – meeting with people on bases to attract top talent for Southern Company.”

May is National Military Appreciation Month, and citizens nationwide are encouraged to celebrate those who have served our country or are serving our country. Because the military and our industry’s cultures are similar – exemplifying dedication, commitment to safety, teamwork and excellence – we actively recruit military personnel who are transitioning out of service.  In fact, veterans account for 10 percent of our company’s 32,000 employees.

Without knowing it, Jamal had been preparing for his recruiting position for years. He joined the Navy after graduating from high school. Jamal spent his first 10 years in communications and was deployed at-sea four times. He then went on to serve as a full-time recruiter for 10 more years until he retired in 2014.

“Veterans play a huge part in our safety and in our lives, every day,” Jamal says, “and Southern Company gives us the opportunity to do the same thing here.”

When it comes to recruiting, Jamal says, “We are looking for the best of the best.” He partners with our operating companies and business units, developing strategies to recruit talent for specific positions. He travels to military bases where he fosters relationships and talks to military personnel who are transitioning from military to civilian working life to find that talent.

“We speak the same language, we have trust,” he says. “Southern Company values the veteran. We understand the teamwork and the training that veterans bring to our organization. The skills match is a huge advantage for both veterans and Southern Company.”

A Reiteration of Mischler’s 2017 Memorial Day Month Pledge.

Consistent with Mischler Financial Group’s annual initiative to commemorate Memorial Day and honor those who made the ultimate sacrifice while serving in our US military, this year we have dedicated a percentage of the month’s commission revenue to two organizations that are near and dear to our hearts and minds.

As we have done in prior Memorial Day and Veterans Day observances, Mischler is pleased to continue our support of Army Ranger Lead The Way Fund, the non-profit dedicated to raising funds to support disabled U.S. Army Rangers and the families of Rangers who have died, have been injured, or are currently serving in harm’s way.

As part of our May 2017 profit pledge, Mischler is equally proud to support the American Cancer Society via our sponsorship of the ACS 12th Annual Financial Services Cares Gala, which will be held June 22 at the New York Hilton Hotel. This year’s gala, which is expected to raise more than $1 million, will pay tribute to former KPMG Chairman & CEO Eugene O’Kelly, who passed away from cancer in 2005 and whose estate remains an ardent supporter of ACS cancer research grants.

Each of us here at Mischler, whether personally, through family members and/or friends and acquaintances, are all-too-familiar with the cancer’s devastating impact. Our support of the ACS is a testament to the crucial work it performs via research grants and assistance to patients undergoing treatment and their caregivers.

As the month of May pledge kicks off, thank you in advance to our sales/trading desk counterparties across the investment management industry and to the many Fortune 500 treasury teams we work with, for your ongoing support of our mission.

 

Dean A. Chamberlain (SDV)

Chief Executive Officer

Mischler Financial Group, Inc.

Southern Company and Mischler Financial truly is a formidable partnership not only when it comes to our day jobs in placing a new issue but also in our shared ethos of giving back opportunities to our military men and women in uniform – those willing to make the ultimate sacrifice.

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

  (more…)

FIGs 4.0; Investment Grade New Issue Re-Cap- Mischler Debt Market Comment
April 2017      Debt Market Commentary   

Quigley’s Corner 04.18.17 FIGs 4.0; Mischler Debt Market Comment

 

Investment Grade New Issue Re-Cap – CT10 Rallies; Yield Tumbles and Big FIGs Lead By Example

J.P. Morgan & Chase Co. –Veteran Diversity & Inclusion

IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates April

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 12th         

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

 

The big FIGs took advantage of recent strong Q1 earnings results to print deals and show why they are the uber-smart money.

Note, that I wrote the following on Wednesday April 5th here in the “QC”:

“T10 yield is coming down folks.  It’s happening at the right time too.  One week from tomorrow, the uber-smart money (think U.S. six-pack banks) release their Q1 2017 earnings with Citigroup, J.P. Morgan and Wells Fargo on tap Thursday, April 13th.  I don’t expect them to capitalize by printing that day because April 13th happens to be a SIFMA early bond market close as Good Friday, April 14th IS a bond market close.  Then on Tuesday, April 18th we’ll have both Bank of America and Goldman Sachs release their Q1 earnings followed by Morgan Stanley on Wednesday the 19thBy that time those six banks will show our IG dollar DCM just how smart “smart money” is. Be patient Treasury teams…..let the market come to you.”

Today the CT10-year closed at 2.168% and has tightened 45.9 bps versus 2.627% on March 13th the Monday before the Fed raised rates. It’s going tighter!

There’s good stuff here in the “QC” folks.

J.P. Morgan & Chase Co. –Veteran Diversity & Inclusion

 

Both J.P. Morgan and Citigroup issued three-part transactions today.  Mischler’s service disabled veteran certified investment bank was honored to be invited as an active Co-Manager on today’s largest transaction of the day –  J.P. Morgan & Chase Co’s. $5.25b 3-part Global Senior Holdco new issue comprised of 6NC5 FRNs, fixed-to-float due 4/25/2023 and 11NC10 fixed-to-float due 5/01/2028.  We thank Janeene Balmir and her staff in Treasury/Funding as well as Bob LoBue, Nick Balzano and Tom Monaghan for working so well with us today on the deal mechanics, book build and allocations.   As JPM’s Senior Diversity Advisor Pat David so eloquently put it, “We think of diversity here at JPMorgan Chase as synonymous with talent.  It’s how we achieve our business objectives. When you hear these words, “diversity,” “inclusion,” etc., try replacing them with the word “talent” – and you’ll understand what it means to us and what we’re trying to do.”

By selecting the nation’s oldest Service Disabled Veteran broker dealer as an active part of today’s mega-deal, not only was it an opportunity for us to access the primary markets for our accounts but it helped J.P. Morgan capture high quality new investors into their profile.  Today that two-way was open, productive and meaningful. For that we thank you all.

Like JPM, we here at Mischler Financial give back to our veteran community. Mischler donates 10% of its revenues to highly vetted veteran causes and organizations.  For our small tight close-knit special operations unit, that’s a lot.  We do, however, realize what the “big guns” do for our nation’s vets as well and so here’s a look at just a few of the major impacts that J.P. Morgan Chase has made in addressing its myriad veteran initiatives and its in their own words:
 mischler-debt-market-comment-041817-jpmorgan-veterans

Notice the number hired–11,000+. That’s a lot of veteran lives and families impacted.  Thank you J.P. Morgan from the top down. From Jamie Dimon to Janeene Balmir and Bob LoBue, to across the entire company, for realizing the vast potential of embracing and promoting an inclusive environment.  Many evaluate performance with money, especially in banking; but it’s all about the ideas generated by people and their successful application.  So, how about the facts?

J.P. Morgan has provided 880 mortgage-free homes valued at more than $160 million donated to military families through nonprofit partners.  They also issued 7,600 career certifications earned by 5,600 post-9/11 veterans and military spouses through the Veterans Career Transition Program while also committing $45 million to programs and initiatives that support veterans and military families.  Those are facts folks!

So, they’re not only still #1 in the IG underwriting league tables with a 10.32% market share but they’re doing great things as well for our nation’s veterans.  Another nice story that needs to get from Wall Street to Main Street! I am honored to help promote that here in the “QC.”

 

 

IG Primary & Secondary Market Talking Points

 

  • Qwest Corp. upsized today’s 40NC5 Notes new issue to $575mm from $250mm at the launch.
  • National Rural Utilities increased today’s 2-part 5s/10s Senior Unsecured Collateral Trust Bonds new issue to $800mm from $750mm at the launch and at the tightest side of guidance.
  • Wells Fargo & Co. exercised a $90mm Greenshoe (3.6mm shares) of its $25 par PerpNC5 non-cumulative Class A Preferred, Series “Y” bringing the new total to $690mm or 27.6mm shares.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 9 IG Corporate-only (ex-Preferred) new issues was <14.25> bps.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 10 IG Corporate-only – which includes today’s Qwest $25 par Preferred new issue – was <13.45> bps.
  • BAML’s IG Master Index tightened 1 bp to +124 vs. +125.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to 1.18 vs. 1.19.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +165.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $9.6b on Monday versus $7.2b on Thursday – the lowest volume session since $2.5b on December 30th, 2016 – $13.1b the previous Thursday.
  • The 10-DMA stands at $13.7b.

 

Global Market Recap

 

  • U.S. Treasuries – enjoyed a big rally with the 3yr thru the 30yr trading at their lowest yields YTD.
  • Overseas Bonds – 30yr JGB lost 5 bps. Europe rallied for the most part.
  • Stocks – U.S. stocks closed down but did have an afternoon bounce.
  • Overseas Stocks – Nikkei improved. China & HS struggled. Very bad day in Europe.
  • Economic – The U.S. data was a mixed bag.
  • Overseas Economic – Home prices in China improved.
  • Currencies – USD mixed vs. Big 5. Poor day for DXY Index & great day for the Pound.
  • Commodities – More red than green in commodity-land. Crude made a nice comeback.
  • CDX IG: +0.99 to 68.88
  • CDX HY: +4.82 to 349.15
  • CDX EM: +1.20 to 212.84

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

-Tony Farren

 

Syndicate IG Corporate-only Volume Estimates April

 

IG Corporate New Issuance April 2017
Forecasts
vs. Current
MTD – $46.152b
Low-End Avg. $90.25b 51.14%
Midpoint Avg. $91.50b 50.44%
High-End Avg. $92.75b 49.76%
The Low $65b 71.00%
The High $111b 41.58%

 

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

 

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

FIGs in Favor Despite Market Caution Caused by Trump TPP Move
January 2017      Debt Market Commentary   

Quigley’s Corner 01.23.17 FIGS in Favor Despite Market Caution re:Trump TPP Move

 

Investment Grade Corporate Bond New Issue Re-Cap
Global Market Recap

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for This Week and January 

The Goldman Sachs Group, Inc. $5b 3-part 5NC4 FXD/FRN and 10nc9r Deal Dashboard

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

Goldman’s Lloyd Blankfein Appears in the “QC”

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending January 18th     

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


President Trump today pulled the U.S. out of the Trans-Pacific Partnership or “TPP” the trade agreement between twelve Pacific Rim countries including China causing some to fear a protectionist U.S. Administration.  Having said that, and refraining from any political commentary therein, it set the stage for a rather “cautious” day in today’s IG dollar DCM.  However, those who could pull off a great deal on the heels of incredible Q4 earnings like The Goldman Sachs Group, Inc. did just that.  Today’s IG primary market featured 4 issuers, 9 tranches and a total of $9.05bn. 55.25% of the day total came in the form of Goldman Sachs’ $5b 3-part 5NC4 FXD/FRN and 10NC9.  Mischler Financial served as an active Co-Manager on the 10NC9 tranche today making it today’s “Deal-of-the-Day.”  There was no activity from the SSA space.

 

Today’s MTD all-in IG Corporate plus SSA new issue total of $174.533b represents the sixth highest volume month on record. We are a mere $3.882b away from third place all-time.
WTD we have priced over 44% of this week’s midpoint average syndicate forecast and we’re now over 16% above the syndicate projection for January with 6 business days to go!

Let’s first briefly run thru the daily recaps before I get into the GS deal drill-down and a feature with GS Chairman Lloyd Blankfein! That’s right, he’s here and waiting for you so let’s get to it. 

Global Market Recap

 

  • U.S. Treasuries – Rally for USTs and bonds in Europe. JGB’s were mixed and little changed.
  • Stocks – Little changed heading into the close and had a nice comeback today.
  • Overseas Bonds – Europe and Japan closed down while China closed higher.
  • Economic – Not a factor today in the U.S. or across the globe.
  • Currencies – USD had a poor day and lost ground vs. all of the Big 5.
  • Commodities – Crude oil was lower and the metals closed with gains.
  • CDX IG: +0.74 to 66.61
  • CDX HY: +2.58 to 352.66
  • CDX EM: +0.19 to 237.39

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Aercap Ireland CDAC/Aercap Global Aviation Trust not only upsized today’s new 5.25ye Senior Notes new issue to $600mm from $500mm but they did so at the T+170 launch that was 5 bps tighter than +180 “area” guidance (+/-5).
  • Branch Bank and Trust Company dropped the 5-year FRN tranche at guidance from today’s initially announced 4-part 3- and 5-year FXD/FRN.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 9 IG Corporate-only new issues was <15.61> bps.
  • BAML’s IG Master Index was unchanged at +128.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +122.  The “LUACOAS” wide since 2012 is +215. The tight is +122.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +165.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $15.2b on Friday versus $23.5b on Thursday and $13.7b the previous Friday.

 

Syndicate IG Corporate-only Volume Estimates for This Week and January 

 

IG Corporate New Issuance This Week
1/23-1/27
vs. Current
WTD – $9.05b
January 2017
Forecasts
vs. Current
MTD – $125.783b
Low-End Avg. $19.09b 47.41% $107.87b 116.61%
Midpoint Avg. $20.46b 44.23% $108.41b 116.03%
High-End Avg. $21.83b 41.46% $108.96b 115.44%
The Low $15b 60.33% $80b 157.23%
The High $26b 34.81% $145b 86.75%

 

The Goldman Sachs Group, Inc. (NYSE:GS)$5b 3-part 5NC4 FXD/FRN and 10nc9r Deal Dashboard

 

I typically only write a relative value study on tranches we are involved in but given the size, scope and impact of this deal – not to mention it was a “Golden” deal – I’m breaking my protocol for the full magilla.  All three tranches right here, right now for YOU!

This morning prior to the market open, the Goldman Sachs Group, Inc. riding high on last week’s blow away Q4 earnings announcement took full advantage today to hit the tapes and price a $5b 3-part 5NC4 FXD/FRN and a new 10NC9 with proceeds used for general corporate purposes. Goldman’s Q4 ’16 bond trading revenues surged to $3.60b against $3.45b expectations.  Goldman Sachs’ Q4 reported diluted EPS of $4.88 against $3.88 forecasts came on $8.17b in total revenues or 10% more than $7.41b projections.   Timing is everything folks!

Mischler served as an active 0.50% Co-Manager on Goldman’s 41.75b 10NC9 tranche and we saw accounts clamoring for new Goldman paper so much so that the high quality order book went subject at 9:00 am to make allocations more manageable.

For 10NC5 fair value I looked at the outstanding GS 3.50% due 11/16/2026 that was T+145 bid (G+145) pre-announcement landing NIC as 3 bps against today’s T+148 10NC9 final pricing.

The new 5NC4 Iooked to the outstanding GS 2.35 due 11/15/2021 that was T+107 bid pre-announcement or G+108 pegging NIC on today’s new 5NC4 FXD/FRNs as 12bps.

However, curve adjusting for the longer 4/26/22 final maturity date compressed the concession significantly.  The value differential from the GS 11/2021 to the GS 4/2022 is about 8-and- a-third or 8.33 bps. Check the 5s/6s curve set by both JPM and WFC. They added 8.33 bps to G108 to get to T+116-117bp fair value and therefore a 3-4 bps new issue concession versus today’s final T+120 final pricing. Conclusion: strong pricing on great news and congratulations all around to Team Goldman Sachs!

Clearly accounts have a strong appetite for big FIGs in what is anticipated to be a more favorable environment for financial services under our new Administration.

 

GS Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
5NC4 FRN 3mL+equiv 3mL+equiv 3mL+111 3mL+111 <15> bps 3.5 bps 3mL+110/108 <1>
5NC4 FXD +135a +120 the # +120 +120 <15> bps 3.5 bps 119/118 <1>
10NC9 +165a +150a (+/-2) +148 +148 <17> bps 3 bps 147/145 <1>

 

………and here’s a look at final book sizes and oversubscription rates:

 

GS  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
5NC4 FRN $1b $1.6n 1.60x
5NC4 FXD $2.25b $4.3b 1.91x
10NC9 $1.75b $4.3b 2.46x

 

Final Pricing – The Goldman Sachs group, Inc.
GS $1b 3mL+111 due 4/26/2022 5NC4 FRN at $100.00

GS $2.25b 3.00% 5NC4 due 4/26/2022 @ $99.680 to yield 3.067% or T+120  MW+20

GS $1.75b 3.85% 10NC9 due 1/26/2027 @ $99.720 to yield 3.884% or T+148  MW+25

 

Now Let’s Do a Deep Dive Into Goldman Sachs’ D&I Initiative

 

Goldman Sachs strives to provide a full spectrum of businesses with the opportunity to compete on a fair and equal basis for its business and, ideally, to expand and grow while working with them. Team Goldman understands and embraces that having a diverse and inclusive supply chain is a social and economic imperative and they look for vendors that share this commitment in a value-added way.

 

To do this, Goldman Sachs encourages the use of qualified businesses where opportunities exist, promote strategic partnerships and engage a number of external stakeholders in support of their efforts.  Goldman continues to make progress expanding the global reach of its vendor diversity and inclusion efforts. Its program began in North America in 2000, expanded to Europe in 2005 and then to Asia Pacific in 2009.  Currently Team GS has diversity and inclusion definitions for over 20 countries where it operates, which include the following categories, where applicable:

 

  • Ethnic Minority Owned
  • Indigenous Owned
  • Locally Owned or Locally Owned and Small and Medium Enterprise
  • Disability Owned
  • Service Disabled Veteran Owned Small Business
  • Social Enterprise Business
  • Small and Medium Enterprise or Small Business
  • Supported Business
  • Veteran Owned Small Business
  • Women Owned

 

When constructing its global headquarters in New York, more than $300 million was awarded to women and minority-owned businesses – making it the most successful project in the history of New York State’s Minority and Women Owned Business Enterprise program upon completion. Nontraditional Employment for Women (NEW), a New York nonprofit that works with unions to bring women into higher-paying jobs in construction trades, recognized Goldman Sachs with its Equity Leadership award for its diversity efforts in the construction of its headquarters building. This is just one example of Goldman’s commitment to vendor diversity and inclusion.

As a firm, The Goldman Sachs Group, Inc. takes its reputation for excellence seriously and seeks to align with business partners who share their commitment to quality. In selecting its vendors, GS considers businesses that can supply its organization with the most cost-effective, reliable products and services. Prospective vendors are evaluated on several criteria, including:

  • Quality of their products and services
  • Customer service
  • Pricing
  • Ability to assist us in meeting our business goals
  • Environmental, Social and Governance commitments

 

Goldman’s Lloyd Blankfein Appears in the “QC” and I Explain Why He Has Good Reason to Smile

Goldman Sachs has a passion for achieving results – for our clients, our employees and the communities where we work around the globe. We understand that one way to improve our results is to capitalize on the broad range of experience, skill and perspective that people from different backgrounds possess.

Through our Vendor Diversity Program, Goldman Sachs seeks to cultivate relationships with diverse businesses that share our commitment to achieving excellent results. Vendor diversity not only increases competition and the potential for economic savings, but also provides a means to build the economic foundation of the communities in which we operate around the world. Through the unique expertise of diverse businesses, Goldman Sachs benefits from innovative ideas, a broader customer base and better service for our clients. Our goal is for the firm to have access to the highest quality products and services at the best possible price. We look forward to the prospect of working with you.

Lloyd C. Blankfein
Chairman and Chief Executive Officer

Despite recently losing some of Goldman’s top guns to appointments in our nation’s new Presidential Administration, Goldman Sachs’ leadership call to Diversity and Inclusion has not missed a beat. Today’s transaction exemplifies what it means to sculpt and mold a best-in-class initiative predicated on a win-win value-added proposition. That means when presented with an opportunity to serve GS, you are expected to deliver the goods, according to Goldman Sachs’ highest standards.  Today, from the top down in Syndicate and Treasury/Funding every single solitary one of the 10 operatives I liaised with were at the ready to address their Chairman’s call and mandate.  It’s one thing for me to thank them each – which I do every time – but entirely another thing when the boss of bosses hears it directly from the diversity firm itself.  So, a five-star salute goes off to Team GS and the capo di tutt’i Wall Street capis, Mr. Lloyd Blankfein.
Have a great evening!

Ron Quigley, Managing Director & Head of Fixed Income Syndicate

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.

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

 

…..and here’s another look at last week’s day-by-day re-cap of key primary market driver averages for IG Corporates only followed by the prior six week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
1/16
TUES.
1/17
WED.
1/18
TH.
1/19
FRI.
1/20
AVERAGES
WEEK 1/16
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
AVERAGES
WEEK 12/26
AVERAGES
WEEK 12/19
AVERAGES
WEEK 12/12
New Issue Concessions Holiday 3.15 bps 6.56 bps <2> bps N/A 3.42 bps 0.85 bps 2.25 bps N/A N/A <0.50> bps
Oversubscription Rates Holiday 2.37x 2.73x 1.76x N/A 2.40x 2.85x 2.45x N/A N/A 2.41x
Tenors Holiday 18 yrs 6.89 yrs 4 yrs N/A 12 yrs 7.83 yrs 6.52 yrs N/A N/A 10.67 yrs
Tranche Sizes Holiday $1,596mm $606mm $750mm N/A $1,123mm $927mm $859mm N/A N/A $708mm
Avg. Spd. Compression
IPTs to Launch
Holiday <14.04> bps <16.03> bps <13.75> bps N/A <14.69> bps <18.77> bps <15.27> bps N/A N/A <17.17> bps

 

New Issues Priced

Today’s recap of visitors to our IG dollar Corporate and SSA DCM:

For ratings I use the better two of Moody’s, S&P or Fitch.

 

IG          

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
Aercap Ireland CDAC/
Aercap Global Aviation
BBB-/BBB- 3.50% 5/26/2022 600 +200a +180a (+/-5) +170 +170 BAML/CITI/GS/JPM
Branch Banking & Trust Co. A1/A+ FRN 1/15/2020 600 3mL+equiv 3mL+equiv 3mL+45 3mL+45 BARC/BBT/MS/RBC
Branch Banking & Trust Co. A1/A+ 2.10% 1/15/2020 1,000 +high 70s/+77.5 +70a (+/-2) +68 +68 BARC/BBT/MS/RBC
Branch Banking & Trust Co. A1/A+ 2.625% 1/15/2022 1,000 +high 80s/+87.5 +80a (+/-2) +78 +78 BARC/BBT/MS/RBC
Goldman Sachs Group, Inc. A3/A FRN 4/26/2022 1,000 3mL+equiv 3mL+equiv 3mL+111   GS-sole
Goldman Sachs Group, Inc. A3/A X.XX% 4/26/2022 2,250 +135a +120 the # +120   GS-sole
Goldman Sachs Group, Inc. A3/A X.XX% 1/26/2027 1,750 +165a +150a (+/-2) +148   GS-sole
MidAmerican Energy Co. Aa2/A+ 3.10% 5/01/2027 375 +85-90/+87.5a +75a (+/-5) +70 +70 BNPP/BARC/CITI/MIZ/USB
MidAmerican Energy Co. Aa2/A+ 3.95% 8/01/2047 475 +110-115/+112.5a +100a (+/-5) +95 +95 BNPP/BARC/CITI/MIZ/USB

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