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MSFT Mega Bond Deal Dashboard- Top 10 Biggest Debt Deals, Ever
January 2017      Debt Market Commentary   

Quigley’s Corner 01.30.17 Microsoft (NASDAQ:MSFT) Mega Bond Deal: To

 

Investment Grade New Issue Re-Cap  – Microsoft Pumps Up Volume with $17b 7-Part That Tied for 9th Largest Issue in History

IG Primary & Secondary Market Talking Points

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

Microsoft’s $17b 7-Part 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 January 25th     

IG Credit Spreads by Rating

IG Credit Spreads by Industry 
New Issue Pipeline

M&A Pipeline

Economic Data Releases

Tomorrow’s Calendar

 

microsoft-mega-bond-deal-mischler

Microsoft pushed up YTD and MTD volume with its mega  $17b 7-part Senior Notes new issue today across 3s, 5s, 7s, 10s, 20s, 30s and 40-year tranches.  As a result, we are within a breath of the all-time highest volume month for all-in (IG Corporates plus SSA) issuance.  The number one ranked month is the $213.40b priced in May 2016.  We are literally a mere $268 million away from breaking thru that number.  The record should come tomorrow.

MTD we’ve already blown past the syndicate desk midpoint average forecast by an amazing 72% or $158.23b vs. $91.96b. As for my call for $160b well, it’s looking pretty smart, if I may be so bold as to say.  As for the WTD syndicate projection, we’ve already priced 82% of the forecast for this week or $17.85b vs. $21.63b.  Pretty incredible stuff right there folks!

Mischler Financial was honored to serve as an active Co-Manager on today’s mega Microsoft deal.  So let’s first run through the recaps and volume tables before I get to the MSFT Deal Dashboard.

 

IG Primary & Secondary Market Talking Points

 

  • Today’s $17b 7-part Microsoft new issue tied for 9th place as the largest issue on record.
  • January 2017 is only $268mm away from becoming the highest volume month in history for all-in (IG Corporate plus SSA) issuance.
  • USAA Capital Corp. upsized its 2yr 144a Senior FRNs due 2/01/2019 new issue to $350mm from $300mm at the launch and at the tightest side of guidance.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 9 IG Corporate-only new issues was <17.22> bps.
  • BAML’s IG Master Index tightened 1 bp to +126 vs. +127.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +120.  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • 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 $21.2b on Thursday versus $23.0b on Wednesday and $23.5b the previous Thursday.
  • The 10-DMA stands at $19.3b.

 

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

 

IG Corporate New Issuance This Week
1/30-2/03
vs. Current
WTD – $17.85b
January 2017
Forecasts
vs. Current
MTD – $158.233b
Low-End Avg. $20.96b 85.16% $90.65b 174.55%
Midpoint Avg. $21.63b 82.52% $91.96b 172.07%
High-End Avg. $22.30b 80.04% $93.26b 169.67%
The Low $10b 178.5% $85b 186.16%
The High $27b 66.11% $120b 131.86%

 

Microsoft’s $17b 7-Part Deal Dashboard

Here’s a look at price compression from early morning initial price thoughts through guidance and the launch and final pricing of today’s $17b 7-part mega deal that tied for the 9th largest deal in history along with Apple’s April 30th, 2013 new issue and MDT’S deal that priced on 12/01/2014.

Today’s seven tranches posted a cumulative average contraction of <17.14> bps through price evolution or IPTs to the launch and final pricing.

Here’s a look at how it all evolved:

 

MSFT Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading +/-
3yr +60a +45a (+/-5) +40 +40 <20> bps 4 39/ <1>
5yr +70a +55a (+/-5) +50 +50 <20> bps 4 48/ <2>
7yr +90a +75a (+/-5) +70 +70 <20> bps 11 68/ <2>
10yr +100a +90a (+/-5) +85 +85 <15> bps 11 84/ <1>
20yr +115a +105a (+/-5) +100 +100 <15> bps 10 97/ <3>
30yr +130a +120a (+/-5) +115 +115 <15> bps 10 113/ <2>
40yr +155a +145a (+/-5) +140 +140 <15> bps 15 138/ <2>

 

……….and here’s a look at final book sizes and oversubscription rates that amounted to $36.9b for an overall bid-to-cover rate of 2.17x:

 

MSFT Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
3yr 1,500 3,700 2.47x
5yr 1,750 3,400 1.94x
7yr 2,250 5,600 2.49
10yr 4,000 7,700 1.925x
20yr 2,500 5,600 2.24x
30yr 3,000 6,200 2.07x
40yr 2,000 4,700 2.35x

 

 

Diversity & Inclusion- Powered by Microsoft  

Mischler Financial, the nation’s oldest Service Disabled Veteran broker-dealer was honored to once again be a very active part of Microsoft’s contributing Co-Manager Group.  Thanks to Microsoft’s top/down internal inclusion mandate, several diversity firms offered a chance to highlight their distribution capabilities.  Team Mischler thanks all of you at Microsoft and applauds your focus and commitment to strive to create an internal as well as external environment that helps Microsoft capitalize on the diversity of your people and the inclusion of ideas and business solutions to meet the needs of your increasingly global and diverse customer base.  Microsoft truly believes that building the best software means incorporating the talents of its varied workforce into its products and recognizing the needs and priorities of its diverse suppliers, customers and business partner base.  Not only do your products make the world smaller and more accessible to everyone but your corporate governance overlays that technology with an inclusive mandate that eliminates barriers, improves businesses and encourages a healthy spirit of competition among competing broker dealers. Hey, it’s all about setting a great example from the top of the Company across to its employees, vendors and customers.  It starts from the top down and in Microsoft’s case it all begins within the office of CEO and Indian-American, Satya Nadella.  For their meaningful and long standing D&I ambition, and for leading by example, you are all the recipient of this evening’s Mischler five-star salute.  We appreciate the opportunity to serve you today and for affording us the chance to expand our platform by accessing your new issue for our rapidly expanding high quality distribution network.  So, thank you all very much.

Thanks also to all of our high quality global accounts who cumulatively contributed a total of 143 individual orders and a total of $439 million across today’s 7-part Senior transaction.  We’re happy when you are happy and by giving us this great opportunity today those accounts have elevated their trust and respect for what we work hard to do here each every day at Mischler Financial.

 

Microsoft Final Pricing

MSFT $1.5bn 1.85% due 2/6/20 @ $99.933 to yield 1.873% or T+40. MW+10.

MSFT $1.75bn 2.40% due 2/6/22 @ $99.785 to yield 2.446% or T+50. MW+10.

MSFT $2.25bn 2.875% due 2/6/24 @ $99.272 to yield 2.991% or T+70. MW+12.5.

MSFT $4bn 3.30% due 2/6/27 @ $99.645 to yield 3.342% or T+85. MW+15.

MSFT $2.5bn 4.10%due 2/6/37 @ $99.783 to yield 4.116% or T+100. MW+15.

MSFT $3bn 4.25% due 2/6/47 @ $99.731 to yield 4.266% or T+115. MW+20.

MSFT $2bn 4.50% due 2/6/57 @ $99.705 to yield 4.516% or T+140. MW+25.

 

 

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

 

…..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.
1/23
TUES.
1/24
WED.
1/25
Th.
1/26
FRI.
1/27
AVERAGES
WEEK 1/23
AVERAGES
WEEK 1/16
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
AVERAGES
WEEK 12/26
AVERAGES
WEEK 12/19
New Issue Concessions 0.94 bps 0.58 bps 0.33 bps 6 bps N./A 1.13b bps 3.42 bps 0.85 bps 2.25 bps N/A N/A
Oversubscription Rates 2.60x 2.88x 4.82x 1.89x N/A 3.29x 2.40x 2.85x 2.45x N/A N/A
Tenors 8.54 yrs 5.75 yrs 6.11 yrs 9 yrs N/A 6.67 yrs 12 yrs 7.83 yrs 6.52 yrs N/A N/A
Tranche Sizes $1,006mm $581mm $883mm $1,000mm N/A $845mm $1,123mm $927mm $859mm N/A N/A
Avg. Spd. Compression
IPTs to Launch
<15.61> yrs <18.12> bps <23> bps <8.5> bps N/A <18.20> bps <14.69> bps <18.77> bps <15.27> bps N/A N/A

 

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
Crown Castle Int’l. Corp. Baa3/BBB- 4.00% 3/01/2027 500 +175-180 +160a (+/-3) +157 +157
Microsoft Corp. Aaa/AAA 1.85% 2/06/2020 1,500 +60a +45a (+/-5) +40 +40
Microsoft Corp. Aaa/AAA 2.40% 2/06/2022 1,750 +70a +55a (+/-5) +50 +50
Microsoft Corp. Aaa/AAA 2.875% 2/06/2024 2,250 +90a +75a (+/-5) +70 +70
Microsoft Corp. Aaa/AAA 3.30% 2/06/2027 4,000 +100a +90a (+/-5) +85 +85
Microsoft Corp. Aaa/AAA 4.10% 2/06/2037 2,500 +115a +105a (+/-5) +100 +100
Microsoft Corp. Aaa/AAA 4.25% 2/06/2047 3,000 +130a +120a (+/-5) +115 +115
Microsoft Corp. Aaa/AAA 4.50% 2/06/2057 2,000 +155a +145a (+/-5) +140 +140
USAA Capital Corp. Aa1/AA FRN 2/01/2019 350 3mL+high30s/
+37.5a
3mL+23-25 3mL+23 3mL+23

 

 

Indexes and New Issue Volume
*Denotes new tight.

 

Index Open Current Change
IG27 64.157 65.788 1.631
HV27 135.835 137.765 1.93
VIX *10.58 11.88 1.30
S&P 2,294 2,280 <14>
DOW 20,093 19,971 <122>
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $17.85 bn DAY: $18.10 bn
WTD: $17.85 bn WTD: $18.10 bn
MTD: $158.233 bn MTD: $213.133 bn
YTD: $158.233 bn YTD: $213.133 bn

 

Lipper Report/Fund Flows – Week ending January 25th     

     

  • For the week ended January 25th, Lipper U.S. Fund Flows reported an inflow of $1.589b into Corporate Investment Grade Funds (2016 YTD net inflow of $9.697b) and a net outflow of $532.417m from High Yield Funds (2016 YTD net outflow of $121.533m).
  • Over the same period, Lipper reported a net inflow of $1.024b into Loan Participation Funds (2016 YTD net inflow of $3.769b).
  • Emerging Market debt funds reported a net outflow of $149.265m (2016 YTD inflow of $165.602m).

 

IG Credit Spreads by Rating (more…)

Mischler Muni Market Issuance Calendar Week of Jan 30
January 2017      Muni Market   

Mischler Muni-bond Market Outlook for the week commencing 01.30.17 looks back to last week’s metrics and provides a lens focused on the Muni Market Issuance Calendar for this week. As always, the Mischler Muni Market snapshot provides public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of prior week’s municipal debt activity, including credit spreads, money flows and a curated view of pending municipal finance offerings scheduled for this week’s issuance.

Last week muni volume was about $6.2 billion. This week volume is expected to be $4.0 billion. The negotiated market is led by $478.5 million for the Oklahoma Turnpike Authority. The competitive market is led by $167.3 million for University System of Maryland on Tuesday.

Below and attached is neither a recommendation or offer to purchase or sell securities. Mischler Financial Group is not a Municipal Advisor. For additional information, please contact Managing Director Richard Tilghman at 203.276.6656

For reading ease, please click on image below

mischler muni market outlook week jan 30

Mischler Financial Group debt capital market expertise, inclusive of Debt Origination, Distribution, Primary Market Access and Secondary Market trading across the full spectrum of fixed income markets is courtesy of our 18-member team of debt market veterans is what makes MFG’s Fixed Income Group a compelling partner to Fortune issuers, corporate treasurers, municipal debt market issuers and the world’s leading institutional investors.

To illustrate our presence within the Debt Capital Markets space: since 2014 alone,  Mischler has led, co-managed and/or served as selling group member for more than $500 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, new companies via IPO, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE) and a recognized minority broker-dealer. Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

(more…)

Mischler IG Debt Market Comment: Knowing Past for the Future; Eye on AEP
January 2017      Debt Market Commentary   

Quigley’s Corner 01.27.17 – Investment Grade Corporate Debt Outlook; Eye on AEP

 

Investment Grade New Issue Re-Cap 

Utility Update re: American Electric Power (NYSE:AEP)

IG Primary & Secondary Market Talking Points

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

The Best and the Brightest –  Fixed Income Syndicate Forecasts and Sound Bites for Next Week 

Syndicate IG Corporate-only Volume Estimates for Next Week and February

“Knowing the Past for the Future” – A Look at a Decade’s Worth of December IG Corporate and SSA Issuance

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

This Week’s IG New Issues and Where They’re Trading

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending January 25th     

IG Credits by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

It was a no-print Friday.  There were a couple filings for Seagate and McKesson, meaning they could be on the short-term horizon for issuance.  Blackouts may prevent a monster week next week, but I am hearing the week after next things should start to build up again for our IG Corporate primary markets (barring a black swan fly over!)
Let’s recap things: first up front and then it’s onto those people who pitch, price and print YOUR deals.  They’re all waiting for you to scroll down below and greet them. That’s right, Friday means it’s time for the “Best & and the Brightest” that syndicate has to offerThey’re all here again to share their numbers, ranges and thoughts on both next week AND February projected new issuance of U.S. investment grade corporate debt. So, pull up a chair, sit down, relax and allow me to inform you through the manifestation of their gracious time and patronage!
Utility Update re: American Electric Power

It’s been in my M&A Pipeline near page bottom of the “QC” every day now for over 4 months – “On Wednesday, September 14th, American Electric Power (“AEP) (Baa1/BBB+) agreed to sell four power plants in the Midwest for a total of $2.17b to a private equity firm created by Blackstone Group and ArcLight Capital Partners. AEP is divesting of many wholesale power markets focusing instead more on its regulated utility businesses.  The closing of the transaction is expected sometime in Q1 2017.”

Well, that was then and this is now.  AEP is expected to close that $2.17b sale “very soon.” On the heels of very strong 2016 earnings that saw EPS beat $3.94 vs. $3.81 estimates and $3.69 the prior year, combined with successful rate base investments and rate increases, AEP looks to be in a very strong position warranting recent S&P upgrades across its corporate structure while keeping them all on a “positive” credit watch. It’s a utility to watch folks.

IG Primary & Secondary Market Talking Points

  • Market tone was incredibly strong today. Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 32 deals that printed, 28 tightened versus new issue pricing for a 50% improvement rate while 2 widened (6.25%) and 2 were flat (6.25%). It sets things up nicely for further issuance ahead!
  • For the week ended January 25th, Lipper U.S. Fund Flows reported an inflow of $1.589b into Corporate Investment Grade Funds (2016 YTD net inflow of $9.697b) and a net outflow of $532.417m from High Yield Funds (2016 YTD net outflow of $121.533m).
  • BAML’s IG Master Index tightened 1 bp to +126 vs. +127.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +120.  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • 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 $21.2b on Thursday versus $23.0b on Wednesday and $23.5b the previous Thursday.
  • The 10-DMA stands at $19.3b.

 

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

 

IG Corporate New Issuance This Week
1/23-1/27
vs. Current
WTD – $23.65b
January 2017
Forecasts
vs. Current
MTD – $140.383b
Low-End Avg. $19.09b 123.89% $107.87b 130.14%
Midpoint Avg. $20.46b 115.59% $108.41b 129.49%
High-End Avg. $21.83b 108.34% $108.96b 128.84%
The Low $15b 1157.67% $80b 175.48%
The High $26b 90.96% $145b 96.82%

 

The Best and the Brightest” –  Syndicate Forecasts and Sound Bites for Next Week

I am happy to announce that, once again, the “QC” received unanimous responses from the 23 syndicate desks surveyed in today’s Best & Brightest poll.  21 of those participants are among 2017’s YTD top 23 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  In fact, 22 of today’s 23 participants finished in the top 25 of last year’s 2016 final IG Corporate Bloomberg league table.  The 2017 League table can be found on your terminals at “LEAG” + [GO] after which you select (US Investment Grade Corporates).  The participating desks represent 87.97% of all IG dollar-denominated new issue underwriting as of today’s table share percentage which simply means they’re the ones with visibility.  But it’s not only about their volume forecasts, it’s also about their comments!  This core syndicate group does it best; they know best; so they’re the ones you WANT and NEED to hear from.  It’s a great look at the week ahead.

*Please note that these are Investment Grade Corporates only. They do not include SSA issuance unless otherwise noted.

As always “thank you” to all the syndicate desks that participated in today’s survey.  I greatly appreciate your time to contribute and for making this edition of the “QC” among the most widely read! You are helping to promote Mischler’s value-added DCM proposition while adding readership to the “QC” that won Wall Street Letter’s Award as Best Broker Dealer Research in our financial services industry for the third consecutive year! That’s 2014, 2015 and 2016. 

We framed the following background info for our 23 fixed income syndicate peers throughout the top Wall Street banks…folks who are in the know..
Will January 2017 break the all-time monthly volume record?

  • WTD, we surpassed the syndicate midpoint average forecast by over 23% or $23.65b vs. $20.46b.
  • MTD we priced over 29% more than the January average forecast or $140.383b vs. $108.41b.
  • All-in YTD IG Corporate and SSA issuance stands at $195.133b making it the 2nd highest monthly volume of all-time. We have $18.267b to break the record set in May 2016 of $213.40b. Will we get there?

Here are this week’s five IG Corporate-only key primary market driver averages after the close of yesterday’s:

  • NICS:  1.13 bps
  • Oversubscription Rates: 3.29x
  • Tenors:  6.67 years
  • Tranche Sizes: $845mm
  • Spread Compression from IPTs to the Launch: <18.20> bps

Here’s how this week’s performance data compares against last week’s:

  • NICs tightened 2.29 bps to 1.13 bps vs. 3.42 bps last week.
  • Over subscription or bid-to-cover rates grew by 0.89x to 3.29x vs. 2.40x. 
  • Average tenors dramatically compressed by 5.33 years to 6.67 years vs. 12 years.
  • Tranche sizes reduced $278mm to $845mm vs. $1,123.
  • Spread compression from IPTs to the launch/final pricing of this week’s 28 IG Corporate-only new issues tightened by <3.51> bps to <18.20> vs. <14.69> bps.
  • Standard and Poor’s Investment Grade Composite Spreads tightened 1 bp to +164 vs. +165.
  • Week-on-week, BAML’s IG Master Index tightened 2 bps to +126 vs. +128. 
  • Spreads across the four IG asset classes tightened 1.50 bps to 19.00 vs. 20.50 bps as measured against their post-Crisis lows. 
  • The 19 major industry sectors tightened 0.95 bps to 24.00 vs. 24.95 bps also against their post-Crisis lows.

As more and more major corporations exit blackouts, we increase the chances of further issuance ahead.  Thus far in his first week as our new President, Donald Trump has been true to his word – he has disrupted D.C. (as well as airports) through an assortment of measures including but not limited to: (i) issuing an executive order to roll back Obamacare, (ii) froze new federal agency regulations for review, (iii) claims to be re-negotiating NAFTA,(iv) pulled the U.S. out of the TPP, (v) met or spoken with U.K., Canadian and Mexican leaders while encouraging U.S. companies to grow jobs in America by closing their foreign plants.  He has taken action on his campaign promise to build a wall along our southern border with Mexico and restricting immigration laws. Those latter steps have also created mass protests throughout the country and in many other countries. On Election Day November 8th, 2016 the DOW closed at 18,332.  Today the Dow sits at an all-time high of 20,100. That’s up 1,768 points or 9.64% making it the number one ranked Post-Election gain since 1900 eclipsing the 7.75% gain of Calvin Coolidge’s Presidency in the Roaring Twenties. Reminding those of us across the financial industry to advance the caveat: “Past performance is not to be considered an indication of future performance.”

The “Best and the Brightest” in Their Own Words

……..……and here are their formidable responses: (more…)

European Corporate Debt Issuance Mkt: Fill ‘Yer Boots Mode
January 2017      Debt Market Commentary   

Quigley’s Corner 01.24.17 Eye on European Corporate Debt Issuance: Fill Yer Boots

“..Today’s all-in US Investment Grade day total issuance makes January issuance $182.433b; the 3rd busiest month on record..”

 

Investment Grade Corporate Debt New Issue Re-Cap – January 2017 Now 3rd Highest Volume Month on Record!
Global Market Recap

IG Primary & Secondary Market Talking Points

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

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 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

It was perhaps a rather subdued IG primary market today in the U.S. but we did wind up featuring 3 IG Corporate issuers that priced 8 tranches between them totaling $4.65.  SSA also assisted in boosting the volume totals as 2 issuers priced 2 tranches amounting to $3.25b.  Today’s all-in IG day total is now $182.433b making it as the 3rd busiest month on record.

However, allow me to tell you about London’s European issuance where the primary market remains “hot.”  What’s that mean?  How about this – today, according to friend, former BNP Paribas colleague and Bloomberg Editorial Primary Market Strategist, Paul Cohen, “Europe remains in a “fill yer boots” mode across the pond.  Notably, of the 151 YTD syndicated transactions, 100 of them (66%) have trended tighter vs. launch/final pricing.  Despite that Europe was expecting a busy week this week they certainly did not anticipate the €32b priced in the in first two sessions.  It’s staggering! Today in particular saw 10 issuers price 11 tranches totaling €27.68b making it the third largest issuance day in Europe in 3 years according to his Bloomberg records. Today’s U.K. 40-year gilt transaction amassed a record £23b in investor order interest while total demand for 3 sovereign bond new issues eclipsed €80b equivalent.  Paul said the reason is that “the latest rise in underlying rates, fueled by improving macro sentiment, appears to be buoying risk appetite.” It sure does.

 

Global Market Recap

 

  • U.S. Treasuries – Bad day for USTs & bonds in Europe. JGB’s closed mixed. Supply a factor.
  • Stocks – Good day for U.S. stocks with record highs for the S&P and NASDAQ.
  • Overseas Stocks – Europe had a good day (not Ireland), Japan red and China mixed.
  • Economic – Markit manufacturing improved. Low inventory holding back existing home sales.
  • Overseas Economic – Solid data in Japan & Europe.
  • Currencies – USD outperformed all of the Big 5. Yesterday was the opposite.
  • Commodities – Big day for copper. Crude oil higher & gold lower.
  • CDX IG: -1.32 to 65.12
  • CDX HY: -5.52 to 346.69
  • CDX EM: -0.81 to 236.23

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Mischler Financial served as a passive underwriter on Morgan Stanley’s $1b (40mm share) 5.85% PerpNC10 fixed-to-floating rate non-cumulative $25 par preferred Series “K” today.  Thank you to MS Preferred Syndicate’s Michael “Captain Morgan” Borut for selecting Mischler as an underwriter from among the many diversity broker-dealers to choose from. It is always appreciated Mike! The transaction rated (Ba1/BB/BB+) started with IPT’s in the 6.125% “area” before tightening 25 bps to revised 5.875% “area” guidance and 2.5 bps tighter into the 5.85% launch for an impressive <27.5> of spread compression throughout price evolution.
    The average spread compression from IPTs thru the launch/final pricing of today’s 8 IG Corporate-only new issues was 18.12 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 $17.1b on Monday versus $15.2b on Friday.
  • The 10-DMA stands at $18.7b.

 

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

 

IG Corporate New Issuance This Week
1/23-1/27
vs. Current
WTD – $13.70b
January 2017
Forecasts
vs. Current
MTD – $130.433b
Low-End Avg. $19.09b 71.77% $107.87b 120.92%
Midpoint Avg. $20.46b 66.96% $108.41b 120.31%
High-End Avg. $21.83b 62.76% $108.96b 119.71%
The Low $15b 91.33% $80b 163.04%
The High $26b 52.69% $145b 89.95%

 

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

 

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

 

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Monday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
1/23
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 0.94 bps 3.42 bps 0.85 bps 2.25 bps N/A N/A <0.50> bps
Oversubscription Rates 2.60x 2.40x 2.85x 2.45x N/A N/A 2.41x
Tenors 8.54 yrs 12 yrs 7.83 yrs 6.52 yrs N/A N/A 10.67 yrs
Tranche Sizes $1,006mm $1,123mm $927mm $859mm N/A N/A $708mm
Avg. Spd. Compression
IPTs to Launch
<15.61> yrs <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
IBM Aa3/AA- FRN 1/27/2020 500 3mL+equib 3mL+equiv 3mL+23 3mL+23 BNPP/CS/HSBC/MIZ/RBC
IBM Aa3/AA- 1.90% 1/27/2020 750 +60a +45-50 +45 +45 BNPP/CS/HSBC/MIZ/RBC
IBM Aa3/AA- 2.50% 1/27/2022 1,000 +75a +60-65 +60 +60 BNPP/CS/HSBC/MIZ/RBC
IBM Aa3/AA- 3.30% 1/27/2027 500 +100a +90-95 +90 +90 BNPP/CS/HSBC/MIZ/RBC
Jackson Nat’l. Life Glbl. Fdg. AA/AA 2.20% 1/30/2020 400 +85a +75 the # +75 +75 BARC/CS/DB/MS
Jackson Nat’l. Life Glbl. Fdg. AA/AA 3.25% 1/30/2024 500 +110a +100 the # +100 +100 BARC/CS/DB/MS
Tech Data Corporation Baa3/BBB- 3.70% 2/15/2022 500 +low 200s
+212.5a
+185a (+/-5) +180 +180 BAML/CITI/JPM
Tech Data Corporation Baa3/BBB- 4.95% 2/15/2027 500 +high 200s +287.5a +255a (+/-5) +250 +250 BAML/CITI/JPM

 

SSA

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
Nordic Investment Bank Aaa/AAA 2.125% 2/01/2022 1,250 MS +19a MS +18a MS +17 +23.5 CITI/JPM/RBC/TD
Province of Quebec Aa2/AA- 2.375% 1/31/2022 2,000 MS +46a MS +44a MS +43 +49.15 BAML/BMO/DB/SCOT

 

Indexes and New Issue Volume

Please note that below levels are as of 3:45pm ET.

 

Index Open Current Change  
IG27 66.447 65.188 <1.259>
HV27 140.44 138.89 <1.55>
VIX 11.77 11.28 <0.49>  
S&P 2,265 2,282 17
DOW 19,800 19,919 119  
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $4.65 bn DAY: $7.90 bn
WTD: $13.70 bn WTD: $16.95 bn
MTD: $130.433 bn MTD: $182.433 bn
YTD: $130.433 bn YTD: $182.433 bn

 

Lipper Report/Fund Flows – Week ending January 18th     

     

  • For the week ended January 18th, Lipper U.S. Fund Flows reported an inflow of $1.893b into Corporate Investment Grade Funds (2016 YTD net inflow of $8.108b) and a net outflow of $887.116m from High Yield Funds (2016 YTD net inflow of $410.884m).
  • Over the same period, Lipper reported a net inflow of $548.36m into Loan Participation Funds (2016 YTD net inflow of $2.745b).
  • Emerging Market debt funds reported a net inflow of $77.439m (2016 YTD inflow of $314.867m).

 

IG Credit Spreads by Rating (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

  (more…)

Mischler Muni-bond Market Outlook Week of Jan 23
January 2017      Muni Market   

Mischler Muni-bond Market Outlook for the week commencing 01.23.17 looks back to last week’s metrics and provides a lens focused on municipal debt market schedule for this week. As always, the Mischler Muni Market snapshot provides public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of prior week’s muni bond activity, including credit spreads, money flows and a curated view of pending municipal finance offerings scheduled for this week’s issuance.

This week volume is expected to be $6.8 billion.  The negotiated market is led by $486 million water and wastewater revenue bonds for the Mayor and City Council of Baltimore, Maryland and $450 million for Bay Area Toll Authority, California.  The competitive market is led by $457.3 million for The Metropolitan Government of Nashville & Davidson County, Tennessee on Tuesday and $455.7 million for Los Angeles County Metropolitan Transportation Authority, California on Wednesday.

muni-bond-schedule-week-jan-23-2017

Mischler Financial Group debt capital market expertise, inclusive of Debt Origination, Distribution, Primary Market Access and Secondary Market trading across the full spectrum of fixed income markets is courtesy of our 18-member team of debt market veterans is what makes MFG’s Fixed Income Group a compelling partner to Fortune issuers, corporate treasurers, municipal debt market issuers and the world’s leading institutional investors.

To illustrate our presence within the Debt Capital Markets space: since 2014 alone,  Mischler has led, co-managed and/or served as selling group member for more than $500 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, new companies via IPO, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE) and a recognized minority broker-dealer. Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

Pre-Presidential Inauguration: Big Banks Float Boatload of Debt Deals
January 2017      Debt Market Commentary   

Quigley’s Corner 01.17.17 – Big Banks Issue Boatloads of Debt; Investor Appetite for IG Debt is Resilient 

 

Investment Grade New Issue Re-Cap – “Banking” on Change – 3 Big FIGs Unleash 3 Deals, 9 Tranches and $18.75b on Heels of Strong Q4 ’16 Earnings.

Global Market Recap

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for January 

Morgan Stanley Inc. $3b 10 year 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 January 11th     

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

 

As Bloomberg Gladfy columnist Lisa Abramowicz pointed out in her Jan 6 story “The Credit Boom Just Won’t Die”, –which included your’s truly cited for providing the most accurate forecast re debt issuance, three more banks joined the pre-Presidential Inauguration day fray to satisfy investors’ insatiable appetite for Investment Grade debt and floated $20.75bil in fresh paper, breaking the weekly fixed income syndicate forecast in a single day.. 

6 IG Corporate issuers announced a total of 13 tranches between them totaling $20.75b.  But, make no mistake about it, the day belonged to the Big FIGs Bank of America, Morgan Stanley and Wells Fargo who between them accounted for  9 of the tranches and just over 90% of the day’s volume.  We are now one day into the holiday-shortened week, yet we’ve already priced 90% of this week’s syndicate midpoint average estimate calling for $23.07b.  Tomorrow looks to be loaded with SSA issuers who were absent today yet who began taken IOIs on tomorrow’s deals.  Slated for Tuesday are IBRD, OKB, KBN, FMS and CPPIB Capital.  So, heavy IG all-in volume is expected therein.

Mischler Financial served as a “passive” Co-Manager on today’s 10-year fixed rate tranche of Morgan Stanley’s three-part 5NC4, 10s and 30s making it today’s Deal-of-the-Day for the nation’s oldest Service Disabled Veteran broker-dealer.  Let’s run down Global, Primary and Secondary Market Recaps and then I’ll get to the MS 3-part drill-down.

 

Global Market Recap

 

  • U.S. Treasuries – Strong session for USTs after Trump said the USD is too strong.
  • Overseas Bonds – JGB’s closed with gains. Europe had more green than red.
  • 3mth Libor – Set at its highest yield since May 2009 (1.02483%).
  • Stocks – The NASDAQ was leading stocks south at 3:30pm.
  • Overseas Stocks – Europe more red than green. Nikkei red. China/HS closed higher.
  • Economic – Light calendar in the U.S. Japan & Europe were better. U.K. CPI higher.
  • Currencies – Trump said the USD was too strong & now it is not as strong.
  • Commodities – Crude oil small gain. Gold & silver were strong. Copper hit hard.
  • CDX IG: +0.97 to 66.79
  • CDX HY: +3.11 to 354.22
  • CDX EM: -1.15 to 233.23

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Regency Centers LP upsized today’s two-part 10s/30s Senior Notes new issue to $650mm from $600mm at the launch and at the tightest side of guidance.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 13 IG Corporate-only new issues was <14.04> bps.
  • BAML’s IG Master Index tightened 1 bp to +128 vs. +129.  +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 +166.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $13.7b on Friday versus $19.4b on Thursday and $18.1b the previous Friday.

 

Syndicate IG Corporate-only Volume Estimates for January 

 

IG Corporate New Issuance This Week
1/16-1/20
vs. Current
WTD – $20.75b
January 2017
Forecasts
vs. Current
MTD – $108.283b
Low-End Avg. $22.20b 93.47% $107.87b 100.38%
Midpoint Avg. $23.07b 89.94% $108.41b 99.88%
High-End Avg. $23.93b 86.71% $108.96b 99.38%
The Low $15b 138.33% $80b 135.35%
The High $36b 57.64 $145b 74.68%

 

Morgan Stanley Inc. $3b 10 year Deal Dashboard

 

This morning prior to the market open, Morgan Stanley posted its strongest quarterly earnings since the Financial Crisis and outperformed Q4 2015 by $950 million thanks to a bond trading revival that boosted MS’s bottom line.  Q4 ’16 Bond trading revenues surged $1.47b or 167% beating analyst’s estimates by $500mm.  That is the single largest amount among six-pack banks that have reported with Citigroup and Goldman Sachs posting tomorrow. Much the recent quarter activity is attributable to market expectations that Donald Trump and his cabinet will boost economic growth, revamp more favorable corporate tax policies and create more of a rising rate environment than the snail’s pace we’ve gotten used to.  Morgan Stanley’s Q4 net income rose 83% to $1.67b or $0.81 EPS vs. $908mm and $0.39 in Q4 2015.

Mischler served as a “passive” 1.00% Co-Manager on Morgan Stanley’s $3b 10-year tranche of their $7b three-part 5NC4, 10s and 30s.

For 10yr fair value I looked at the outstanding MS 2.625% due 11/17/2021 that was T+134 (G+136) pre-announcement landing NIC as 7 bps against today’s final +143 new 10yr pricing.

The new 5yr that priced at 3mL +118 looked to the outstanding MS 2.625 due 11/17/2021 that was seen T+107 bid pre-announcement or G+109.5 pegging NIC on today’s new 5yr as 8.5 bps to the 5yr bullet.

The 30yr comped best to the MS 4.30% due 1/27/2045 T+133 nailing today’s new 30 yr NIC as 15 bps versus today’s final T+148 pricing.

 

As for Morgan’s inclusive focus on veterans and veteran initiatives and Mischler’s designation to play a role in this transaction, Morgan Stanley Chairman and Chief Executive Officer James Gorman says, “Morgan Stanley thanks you for your service.  The military’s emphasis on the mission and the team, leadership accountability and continuous improvement aligns well with the culture of our Firm.”

To Mr. Gorman: It’s an honor to serve on your transaction. We always stand at the ready for you and Team Morgan Stanley.

 

 

MS Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
5yr 3mL+125a 3mL+120
(+/-2)
3mL+118 3mL+118 <7> bps 8.5 117/116 <1>
10yr FXD +155a +145a (+/-2) +143 +143 <12> bps 7 bps 143/141 0/flat
30yr +160a +150a (+/-2) +148 +148 <12> bps 15 bps 141/139 <7>

 

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

 

MS  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
5yr $1.75b $2.75b 1.57x
10yr FXD $3b $5.5b 1.83x
30yr $2.25b $5.1b 2.27x

 

Final Pricing – Morgan Stanley (NYSE:MS)
MS $1.75b 3mL+118 due 1/20/2022 5NC4 FRN at $100.00

MS $3b 3.625% 10yr FXD due 1/20/2027 @ $98.999 to yield 3.746% or T+143  MW+25

MS $2.25b 4.375% 30yr FXD due 1/20/2047 @ $99.322 to yield 4.416% or T+148  MW+25

 

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

 

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

 

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
1/09
TUES.
1/10
WED.
1/11
TH.
1/12
FRI.
1/13
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
AVERAGES
WEEK 12/26
AVERAGES
WEEK 12/19
AVERAGES
WEEK 12/12
AVERAGES
WEEK 12/05
New Issue Concessions 0.57 bps 0.83 bps 0.67 bps 6.50 bps N/A 0.85 bps 2.25 bps N/A N/A <0.50> bps 4.26 bps
Oversubscription Rates 3.02x 2.85x 2.70x 2.70x N/A 2.85x 2.45x N/A N/A 2.41x 3.68x
Tenors 9.09 years 5.40 yrs 8 yrs 5.67 yrs N/A 7.83 yrs 6.52 yrs N/A N/A 10.67 yrs 9.21 yrs
Tranche Sizes $613mm $433mm $1,577mm $667mm N/A $927mm $859mm N/A N/A $708mm $760mm
Avg. Spd. Compression
IPTs to Launch
<15.32> bps <19.83> bps <21.46> bps <23.75> bps N/A <18.77> bps <15.27> bps N/A N/A <17.17> bps <22.24> bps

…..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:

 

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.

 *Please note that Baptist Health South Florida Obligated Group priced on Monday, January 9th but was posted today.  It is italicized in the below table for informational purposes only but is not included in today’s IG Corporate day total.  The New Issue Volume tables below have been updated to reflect its inclusion.  Thanks! -RQ

IG          

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
Bank of America Baa1/A FRN 1/20/2023
6NC5
750 3mL+equiv 3mL+116 the # 3mL+116 3mL+116 BAC-sole
Bank of America Baa1/A 3.124% 1/20/2023
6NC5
1,500 +140 +130 the # +130 +130 BAC-sole
Bank of America Baa1/A 3.824% 1/20/2028
11NC10
2,500 +165a +150a (+/-2) +150 +150 BAC-sole
Bank of America Baa1/A 4.443% 1/20/2048
31NC30
2,000 +165a +150a (+/-2) +150 +150 BAC-sole
Guardian Life Ins. Co. of America AA-/AA- 4.85% 1/24/2077 350 +low 200s
+200-225/+212.5a
+200a (+/-5) +195 +195 CS/DB/JPM/MS
Kroger Co. Baa1/BBB 4.45% 2/01/2047 1,000 +160a +150 the # +150 +150 BAML/RBC/USB(a) + 3 (p)
Morgan Stanley A3/A FRN 1/20/2022
5NC4
1,750 3mL+125a 3mL+120 (+/-2) 3mL+118 3mL+118 MS-sole
Morgan Stanley A3/A 3.625% 1/20/2027 3,000 +155a +145a (+/-2) +143 +143 MS-sole
Morgan Stanley A3/A 4.375% 1/20/2047 2,250 +160a +150a (+/-2) +148 +148 MS-sole
Regency Centers LP Baa1/BBB+ 3.60% 2/01/2027 350 +150a +135a (+/-5) +130 +130 BAML/JPM/USB/WFS
Regency Centers LP Baa1/BBB+ 4.40% 2/01/2047 300 +175a +155a (+/-5) +150 +150 BAML/JPM/USB/WFS
Wells Fargo & Co. A2/AA- FRN 1/24/2023
6NC5
1,250 3mL+equiv (+125a) 3mL+111 the # 3mL+111 3mL+111 WFS-sole
Wells Fargo & Co. A2/AA- 3.069% 1/24/2023
6NC5
3,750 +140a +125 the # +125 +125 WFS-sole

 

 Indexes and New Issue Volume

*Denotes 52-week low.

Index Open Current Change
IG27 65.82 66.428 0.608
HV27 140.34 139.90 <0.44>
VIX *11.23 11.86 0.63
S&P 2,274 2,267 <7>
DOW 19,885 19,826 <59>
 

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

DAY: $20.75 bn DAY: 20.75 bn
WTD: $20.75 bn WTD: 20.75 bn
MTD: $108.283 bn MTD: $137.033 bn
YTD: $108.283 bn YTD: $137.033 bn

 

Lipper Report/Fund Flows – Week ending January 11th     

     

  • For the week ended January 11th, Lipper U.S. Fund Flows reported an inflow of $4.029b into Corporate Investment Grade Funds (2016 YTD net inflow of $6.215b) and a net inflow of $563.51m into High Yield Funds (2016 YTD net inflow of $1.298b).
  • Over the same period, Lipper reported a net inflow of $1.332b into Loan Participation Funds (2016 YTD net inflow of $2.197b).
  • Emerging Market debt funds reported a net inflow of $172.277m (2016 YTD inflow of $237.428m).

 

Economic Data Releases

 

TODAY’S ECONOMIC DATA PERIOD SURVEYED ESTIMATES ACTUAL NUMBER PRIOR NUMBER PRIOR REVISED
Empire Manufacturing January 8.5 6.5 9.0 7.6

 

Rates Trading Lab

 

The week is off to an interesting start. Today we had some unwinding of the Trump trade with Treasuries rallying, stocks selling off and the USD getting whacked. The market is starting to realize Trump plans will have many hurdles to get over before they become a reality. At the 3pm close, benchmark Treasuries were better bid by 3.7 bps (2yr: 1.156%) to 5.8 bps (5yr: 1.826%).

 

Today’s highlights were:

 

  • President-Elect Trump told the WSJ the USD was already too strong and the USD paid a severe price for the comment. The USD was hit hard by all of the Big 5.
  • This morning, U.K. PM Theresa May said she will not pursue membership in the EU single market system. The Pound which had been under heavy pressure last week rallied on the May & Trump comments. It was the best day the Pound has had vs. the USD since 2008.
  • NY Fed President Dudley (voter/very dovish) was very dovish this morning. Dudley said the Fed is unlikely to snuff out the U.S. economic expansion and inflation is not a problem.
  • Conversely, Fed Gov. Brainard (dove) was hawkish in her comments today. Brainard was the 3rd Fed member in the New Year (2017) to mention the Fed balance sheet. Last Thursday St. Louis Fed Pres. Bullard (non-voter) and Dallas Fed Pres. Kaplan (voter) also mentioned the balance sheet. Something to keep your eye on.

 

UST Resistance/Support Table

 

CT3 CT5 CT7 CT10 CT30
RESISTANCE LEVEL 100-272 101-106 101-16 98-04+ 100-16
RESISTANCE LEVEL 99-31+ 101-046 101-07 97-24+ 99-25
RESISTANCE LEVEL 99-30 100-30 100-31 97-13+ 99-16
         
SUPPORT LEVEL 99-27 100-226 100-20 96-30 98-13
SUPPORT LEVEL 99-252 100-196 100-10 96-17 97-26
SUPPORT LEVEL 99-24 100-142 100-03 96-09 97-06

 

Tomorrow’s Calendar

 

  • China Data: Nothing Scheduled
  • Japan Data: Nothing Scheduled
  • Australia: Westpac Consumer Confidence
  • EU Data: German Dec CPI, EU Dec CPI, U.K. Dec Unem/Nov Earns
  • U.S. Data: MBA, Dec CPI, Dec IP/CapU, Jan NAHB, Nov TIC
  • Supply: ECB 7d$, BoC
  • Events: Nouy, Yellen, Kashkari, Kaplan, Olsen

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Municipal Debt Market Schedule Week of Jan 17 2017
January 2017      Muni Market   

Mischler Municipal Bond Offering Outlook for the week commencing 01.17.17 looks back to last week’s metrics and provides a lens focused on municipal debt market schedule for this week. As always, the Mischler Muni Market snapshot provides public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of prior week’s muni bond activity, including credit spreads, money flows and a curated view of pending municipal finance offerings scheduled for this week’s issuance.

Last week muni volume was about $8.2 billion.  This week volume is expected to be $8.9 billion.  The negotiated market is led by $1,162.5 million tax-exempt and taxable general obligation bonds for City of Chicago, IL.  The competitive market is led by $356.7 million of tax-exempt and taxable bonds for the Board of Regents of the University of Houston, Texas on Thursday.

mischler-muni-outlook-week-jan-17-2017

Mischler Financial Group debt capital market expertise, inclusive of Debt Origination, Distribution, Primary Market Access and Secondary Market trading across the full spectrum of fixed income markets is courtesy of our 18-member team of debt market veterans is what makes MFG’s Fixed Income Group a compelling partner to Fortune issuers, corporate treasurers, municipal debt market issuers and the world’s leading institutional investors.

To illustrate our presence within the Debt Capital Markets space: since 2014 alone,  Mischler has led, co-managed and/or served as selling group member for more than $500 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, new companies via IPO, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE) and a recognized minority broker-dealer. Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

 

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The Day’s New Debt Issuance: USD 22.5bil Floated Across 15 Deals
January 2017      Debt Market Commentary   

Quigley’s Corner 01.11.17-$22.5bil in New Debt Issuance Floated / 15 Deals; Led by Broadcom and GM Financial

 

Investment Grade Corporate Bond New Issue Re-Cap 

Global Market Recap

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for January 

Rates Trading Lab

General Motors Financial Co. Inc. $2.5b 3-part 5yr FXD/FRN and 10yr Senior Unsecured 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 January 4th     

IG Credit Spreads by Rating / Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Tomorrow’s Calendar

It was yet another very busy and high volume day today in our IG dollar DCM that featured 6 IG Corporate issuers across 13 tranches totaling $20.50b led by a $13.55b 4-part from Broadcom and a $2.5b 3-part deal from General Motors Financial Co. Inc.  Additionally, 2 SSA issuers brought 2 tranches adding another $1.75b thereby bringing the all-in IG day totals to 8 issuers, 15 tranches and $22.25b.

The WTD IG Corporate-only total is now $32.05b or 10% more than this week’s $30.13b syndicate midpoint average estimate.
MTD we have now realized $85.283b or 79% of the syndicate forecast for all of January which is $108.41b.
All-in IG Corporate plus SSA MTD issuance currently stands at: $111.533b.

Mischler Financial served as an active Co-Manager on today’s $2.5b 3-part Senior Unsecured Notes new issue for General Motors Financial Co. Inc. and so it is today’s Deal-of-the-Day.  You know the routine, let’s re-cap the day first and then it’s on to the GM Deal Dashboard and drill-down.

 

Global Market Recap

 

  • U.S. Treasuries –  USTs had small gains. Strong 10yr auction. Afternoon selling hit market.
  • Overseas Bonds – Europe traded with a bid. JGB’s mixed. Supply was a factor.
  • 3mth Libor – Set at the highest yield since April 2009 (1.02178%).
  • Stocks – U.S. stocks higher heading into close. Today was a roller coaster ride.
  • Overseas Stocks – FTSE (12) & HS (10) with double digit session winning streaks.
  • Economic – IBD/TIPP economic optimism at a 10-year high.
  • Currencies – USD had a bid until the Trump press conference & then rolled over.
  • Commodities – Crude oil with a strong rally despite bearish inventory data.
  • CDX IG: +0.16 to 66.24
  • CDX HY: +1.40 to 352.25
  • CDX EM: +0.68 to 241.96

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • The average spread compression from IPTs thru the launch/final pricing of today’s 13 IG Corporate-only new issues was <21.46> bps.
  • BAML’s IG Master Index was unchanged at +129.  +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 +166.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $20.3b on Tuesday versus $16.7b on Monday (the 7th highest day since 2006) and $22.4b the previous Tuesday.

 

Syndicate IG Corporate-only Volume Estimates for January 

 

IG Corporate New Issuance This Week
1/09-1/13
vs. Current
WTD – $32.05b
January 2017
Forecasts
vs. Current
MTD – $85.283b
Low-End Avg. $29.04b 110.37% $107.87b 79.06%
Midpoint Avg. $30.13b 106.37% $108.41b 78.67%
High-End Avg. $31.22b 102.66% $108.96b 78.27%
The Low $20b 160.25% $80b 106.60%
The High $40b 80.13% $145b 58.82%

 

Rates Trading Lab

If you were hoping to hear news on the Trump Administration’s plans for the economy (fiscal policy) in today’s press conference you were sorely disappointed. The mass media proved once again they are pretty close to being worthless. The majority of the questions directed to President-Elect Trump concerned Russia and Putin. Some of the things we did learn from Trump today were his plans to step away from the Trump Organization, he will pick a Supreme Court nominee within 2 weeks of his inauguration, he thinks leaks are coming from the intelligence community and CNN is not high on his list.

UST’s dealt with conflicting items today. The 10yr had a bid heading into the $20b 10yr auction and rallied after the auction results were very strong (details below). It was the 4th very strong Treasury auction in a row. Treasuries came under pressure after the auction bounce and the most likely reason for the selling was the 4-part $13.55b Broadcom deal. The deal was much bigger than expected ($6b). Broadcom was the highlight deal but not the only one today. The new issue markets in the U.S. and Europe remained very active. At the 3pm close  benchmark UST’s were better bid by 0.3 bps (5yr: 1.876%) to 1.4 bps (30yr: 2.957%).
-Tony Farren

 

UST Resistance/Support Table

 

CT3 CT5 CT7 CT10 CT30
RESISTANCE LEVEL 99-29 100-29+ 100-28+ 97-09+ 99-27+
RESISTANCE LEVEL 99-272 100-262 100-25+ 97-04 99-11
RESISTANCE LEVEL 99-26 100-222 100-18+ 96-29 98-26
           
SUPPORT LEVEL 99-22+ 100-156 100-10+ 96-18 97-27
SUPPORT LEVEL 99-20+ 100-12+ 100-05+ 96-11 97-08
SUPPORT LEVEL 99-18+ 100-09 100-00+ 96-04+ 96-17

 

General Motors Financial Co. Inc. $2.5b 3-part 5yr FXD/FRN and 10yr Senior Unsecured Notes Deal Dashboard (more…)

Mischler Muni Debt Market: 8bil in Deals Scheduled This Week
January 2017      Muni Market   

Mischler Municipal Bond Offering Outlook for the week commencing 01.09.17 looks back to last week’s metrics and provides a lens focused on selected municipal bond offerings for this week. As always, the Mischler Muni Market snapshot provides public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of prior week’s muni bond activity, including credit spreads, money flows and a curated view of pending municipal finance offerings scheduled for this week’s issuance.

This week volume is expected to be $8.7 billion.  The negotiated market is led by $665.0 million for Triborough Bridge and Tunnel Authority, NY.  The competitive market Is led by $612.4 million general obligation bonds for the State of Washington in 3 bids on Tuesday.

mischler-municipal-debt-calendar-010917

Mischler Financial Group debt capital market expertise, inclusive of Debt Origination, Distribution, Primary Market Access and Secondary Market trading across the full spectrum of fixed income markets is courtesy of our 18-member team of debt market veterans is what makes MFG’s Fixed Income Group a compelling partner to Fortune issuers, corporate treasurers, municipal debt market issuers and the world’s leading institutional investors.

To illustrate our presence within the Debt Capital Markets space: since 2014 alone,  Mischler has led, co-managed and/or served as selling group member for more than $500 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, new companies via IPO, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE) and a recognized minority broker-dealer. Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

(more…)
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