Browsing articles tagged with "minority broker-dealer Archives - Page 7 of 13 - Mischler Financial Group"
Trump’s “Phenomenal Tax Plan” Pushes Equities Higher..For How Long?
February 2017      Equities Market Commentary   

Peruzzi’s Perch – Feb 10 2017- Phenomenal Tax Plan ; Global Central Banks Fragmentation

 

larry-peruzzi-mischler-equitiies

Larry Peruzzi

U.S markets spent most of the week listening to noise out of Washington regarding Travel Ban legal challenges and cabinet appointment nomination hearings. With little in terms market moving economic data financial markets were trying to determine if recent run up to record levels left assets overvalued. Wednesday that noise turned to music as a Trump Olive branch letter to China’s President Xi Jinping promised a “constructive relationship”.

The letter, coupled with Trump promises of ‘Phenomenal’ tax plan pushed U.S markets to fresh record highs. So while fears grow that the U.S foreign policy is leaning more toward protectionism and isolationism, market friendly fiscal policy is allowing us to look past the noise.

An interesting global central bank story is developing where monetary policy is beginning to become independent of each other. Some Central Banks are now raising, some are cutting, many still standing put; but we are no longer moving in lockstep.

This should create many global trading opportunities in fixed income securities. Earnings season will continue to wind down with 67 companies (heavy in techs) reporting next week. Economic releases next week will give the FED a clearer picture on inflation with Tuesday’s PPI, Wednesday CPI and retail sales and Thursday’s housing starts and building permits.

Although, recent releases statements have indicated the FED is happy to hold rates unchanged a little longer. FED Chairwomen Yellen has a full week as she appears before Senate Banking Panel on Tuesday followed by her Semi-Annual testimony to the House Panel on Wednesday. Investors are also starting to look at valuations as the S&P 500 P.E ratio rose to 21.2. We have seen it higher, but as we approach a P.E of 24 and 25, many will be looking to book some profits.

So, overall investors will continue to dance with the market as long as the music continues, but watch those valuations and inflation indicators.

Larry Peruzzi

Managing Director International Trading

Mischler Financial Group

Investment Banking | Institutional Brokerage

Ph:   1-617-420-8472

Larry Peruzzi is a 20 yr global trading markets veteran and brings a unique perspective to global equities market commentary via Mischler Financial Group, the securities industry’s oldest minority broker-dealer owned and operated by service-disabled veterans.  Larry’s experience  and best execution perspective stems from his sitting on ‘both sides of the aisle.’  For more than half of Larry’s career, he ran buy-side trading desks for Standish Mellon and thereafter, The Boston Company. In both of those roles, Larry was responsible for implementing and managing international equities trade execution. Larry’s perspectives are frequently cited by the leading financial news publishers, including The Wall Street Journal, Bloomberg LP and Reuters

Mischler End of Week Equities Market Commentary via Peruzzi’s Perch Feb 10 2017 end-of-week edition is distributed via email to institutional investment managers and Fortune Treasury clients of veteran-owned broker-dealer Mischler Financial Group, the investment industry’s oldest and largest minority broker-dealer owned and operated by Service-Disabled Veterans.

Peruzzi’s Perch is a weekly synopsis of Everything Equities as seen from the perch of Mischler Financial Group’s International Equities Desk. Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”, Peruzzi’s Perch is one of four distinctive content pieces produced by Mischler Financial Group.

To receive Peruzzi’s Perch, please contact Larry Peruzzi, Managing Director, International Equities via email: lperuzzi@mischlerfinancial.com or via phone. (more…)

Quigley’s Corner – 02.10.17 Weekend Edition | Outlook from Best & Brightest
February 2017      Debt Market Commentary   

Quigley’s Corner – 02.10.17 Weekend Edition | Outlook from Best & Brightest

 

Investment Grade Corporate Debt New Issue Re-Cap

IG Primary & Secondary Market Talking Points

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

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

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 February 8th    

IG Credit Spreads by Rating

IG Credit Spreads by Industry

Economic Data Releases

New Issue Pipeline

M&A Pipeline

Rates Trading Lab

Tomorrow’s Calendar

It was another no-print Friday today and a welcome one at that.  I am happy to announce that one additional syndicate desk earned its way into the “Best and the Brightest” so, my survey now includes 24 desks. They are the ones you want and need to hear from. They are very patiently lined up and waiting below with their numbers and thoughts for next week’s IG dollar DCM supply. So, kick back, relax, have a cup of coffee, knock back a beer or enjoy glass of wine or perhaps just sit by the fireplace and read what you need to know.  Let’s recap things first and on with the show!

 

IG Primary & Secondary Market Talking Points

 

  • Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 26 deals that printed, 14 tightened versus NIP for a 00% improvement rate while 8 widened (30.75%) and 4 were flat (15.25%).
  • For the week ended February 8th, Lipper U.S. Fund Flows reported an inflow of $4.932b into Corporate Investment Grade Funds (2016 YTD net inflow of $17.286b) and a net inflow of $441.718m into High Yield Funds (2016 YTD net inflow of $732.780m).
  • 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 tightened 1 bp to +121 vs. 1.22.  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +167.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $18.4b on Thursday versus $22.1b on Wednesday and $22.5b the previous Thursday.
  • The 10-DMA stands at $20.3b.

 

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

 

IG Corporate New Issuance This Week
2/06-2/10
vs. Current
WTD – $14.70b
February 2017
Forecasts
vs. Current
MTD – $27.275b
Low-End Avg. $23.74b 61.92% $90.65b 30.09%
Midpoint Avg. $24.72b 59.47% $91.96b 29.66%
High-End Avg. $25.70b 57.20% $93.26b 29.25%
The Low $15b 98.00% $85b 32.09%
The High $35b 42.00% $120b 22.73%

 

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

 

I am happy to announce that I’ve added a new top syndicate desk to the “QC’s” “Best & Brightest” survey!  As they are in the top 25 they are a most welcome addition.  Once again, the “QC” received unanimous responses from the 24 syndicate desks surveyed in today’s Best & Brightest poll.  22 of those participants are among 2017’s YTD top 25 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  In fact, 21 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 86.61% 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 !!  More importantly, however, you are helping the nation’s oldest Service Disabled Veteran broker-dealer grow in a more meaningful and sustainable way.  So, thank you all! -RQ

 

The question posed to the “Best and the Brightest” early this morning framed with the following:
Here are this week’s numbers:

  • WTD, we missed this week’s IG Corporate syndicate midpoint average forecast by over 40% having priced only $14.70b vs. $24.72b.
  • Thus far in February we priced 30% of the monthly syndicate projection or $27.275b vs. $91.96b.
  • All-in YTD IG Corporate and SSA issuance stands at $268.558b! 

Here are this week’s five key IG Corporate-only primary market driver averages:

  • NICS:  <3.44> bps
  • Oversubscription Rates: 3.92x
  • Tenors:  12.04 years
  • Tranche Sizes: $735mm
  • Spread Compression from IPTs to the Launch: <19.60> bps


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

 

  • NICs tightened 2.57 bps to <3.44> bps vs. <0.87> bps.
  • Over subscription or bid-to-cover rates increased by 0.80x to 3.92x vs. 3.12x.. 
  • Average tenors extended by 0.44 years to 12.04 years vs. 11.60 years.
  • Tranche sizes declined dramatically by $576mm to $735mm vs. $1,311mm, the result of last week’s hefty jumbo deal tranche sizes from MSFT, AT&T and AAPL.
  • Spread compression from IPTs to the launch/final pricing of this week’s 20 IG Corporate-only new issues widened ever so slightly by <0.17> bps to <19.60> vs. <19.77> bps.
  • Standard and Poor’s Investment Grade Composite Spreads widened 1 bp to +167 vs. +166.
  • Week-on-week, BAML’s IG Master Index widened 1 bp to +128 vs. +127. 
  • Spreads across the four IG asset classes tightened 0.50 bps to 20.50 vs. 21.00 bps as measured against their post-Crisis lows. 
  • The 19 major industry sectors tightened 0.46 bps to 24.74 vs. 25.20 bps also against their post-Crisis lows.
  • For the week ended February 8th, Lipper U.S. Fund Flows reported an inflow of $4.932b into Corporate Investment Grade Funds (2016 YTD net inflow of $17.286b) and a net inflow of $441.718m into High Yield Funds (2016 YTD net inflow of $732.780m).

 

Corporate America has posted earnings.  Most issuers have exited blackouts.  Thursday’s storm may have hampered a bit of issuance this week and next week is expected to be sizeable. Chair Yellen testifies before the U.S. Senate Banking Panel on Tuesday the 14th. This represents Yellen’s first appearance since raising rates last month. All eyes and ears will be tuned into that especially since the January FOMC meeting was not followed by a Press Conference. Meanwhile Japan’s Prime Minister Abe arrives today for his first official summit with President Trump through the weekend.    

My approach to the “Quig” Pro Quo is to give something first and then ask.  So, it’s now time for the question, – “what are your thoughts and numbers for next week’s IG Corporate new issue volume?” 

Thank you very much and a have a great weekend! -Ron”

 

The “Best and the Brightest” in Their Own Words*

 

*Responses the QC Best & Brightest are available exclusively to QC email subscribers

 

Syndicate IG Corporate-only Volume Estimates for Next Week

IG Corporate New Issuance Next Week
2/13-2/17
Low-End Avg. $20.71b
Midpoint Avg. $21.33b
High-End Avg. $21.96b
The Low $15b
The High $26b

A Look at How the Voting Brackets Broke-Out for Next Week

 

Next Week
2/13-2/17
1: 15b
2: 15-20b
10: 20b
1: 21b
4: 20-25b
5: 25b
1: 26b

 

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 weekend!

Ron Quigley

 

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

 

Here is this week’s day-by-day re-cap of the five key primary market driver averages for IG Corporatesonly followed by this week’s and the prior five week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
2/06
TUES.
2/07
WED.
2/08
TH.
2/09
FRI.
2/10
THIS WEEK’S
AVERAGES
AVERAGES
WEEK 1/30
AVERAGES
WEEK 1/23
AVERAGES
WEEK 1/16
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
New Issue Concessions <3.62> bps <7.5> bps 5.25 bps N/A N/A <3.44> bps <0.87> bps 1.13b bps 3.42 bps 0.85 bps 2.25 bps
Oversubscription Rates 4.25x 4.56x 2.18x 7.33 N/A 3.92x 3.12x 3.29x 2.40x 2.85x 2.45x
Tenors 12.83 yrs 16.65 yrs 6.40 yrs 10 yrs N/A 12.04 yrs 11.60 yrs 6.67 yrs 12 yrs 7.83 yrs 6.52 yrs
Tranche Sizes $744mm $850mm $690mm $300mm N/A $735mm $1,311 yrs $845mm $1,123mm $927mm $859mm
Avg. Spd. Compression
IPTs to Launch
<19.17> bps <25.40> bps <11.5> bps <35> bps N/A <19.60> bps <19.77> bps <18.20> bps <14.69> bps <18.77> bps <15.27> bps

 

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

 

Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 26 deals that printed, 14 tightened versus NIP for a 54.00% improvement rate while 8 widened (30.75%) and 4 were flat (15.25%).

Issues are listed from the most recent pricings at the top working back to Monday at the bottom.  Thanks! –RQ

 

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED TRADING
H.B. Fuller Co. Baa3/BBB 4.00% 2/15/2027 300 +200a +170a (+/-5) +165 +165 156/153
ADB Aaa/AAA 2.00% 2/16/2022 3,750 MS +19a MS +19a MS +18 +26.95 25/24
BP Capital Markets PLC A2/A- FRN 8/14/2018 500 N/A 3mL+40a (+/-5) 3mL+35 3mL+35 3mL+29.5/26.5
BP Capital Markets PLC
(tap) New Total: $1.75b
A2/A- 2.315% 2/13/2020 500 +85a +70a (+/-5) +65 +65 63/60
BP Capital Markets PLC A2/A- 3.224% 4/14/2024 1,000 +120a +115a (+/-5) +110 +110 108/105
BP Capital Markets PLC A2/A- 3.588% 4/14/2027 850 +130a +125 the # +125 +125 121/118
CMS Energy Corp. Baa2/BBB 3.45% 8/15/2027 350 +125-130 +115a (+/-5) +110 +110 111/109
BNG Aaa/AAA 1.50% 2/15/2019 2,250 MS +13a MS +13a MS +13 +44.25 44/42
Citigroup Inc.
(tap) New Total: $1.75b
Baa3/A- 4.75% 5/18/2046 750 +185a +175a (+/-2) +173 +173 176/173
Fondo Mivivienda S.A.
(tap) New Total: $650mm
BBB+/BBB+ 3.50% 1/31/2023 150 +180a +175a (+/-5) +170 +170 170/167
MPLX LP Baa3/BBB- 4.125% 3/01/2027 1,250 very high 100s +193.75a +180a (+/-5) +175 +175 175/171
MPLX LP Baa3/BBB- 5.20% 3/01/2047 1,000 +50 bps curve
243.75
+225a (+/-5) +220 +220 215/212
Symantec Corp. Baa3/BB+ 5.00% 8NC3 1,100 +mid to hi 5.00%
or 5.625%a
5.25-5.30%
or 5.375%a
5.00% +271 277/272
Dexia Capital Local Aa3/AA- FRN 2/15/2019 500 3mL+50 N/A N/A 3mL+50 3mL+50/47
EIB Aaa/AAA 1.75% 5/15/2020 3,000 MS +14a MS +14a MS +12 +42.5 41/40
KfW Aaa/AAA 1.25% 9/13/2018 1,000 MS <4>a MS <4>a MS <4> +17.45 17.6/17.4
TVA Aaa/AAA 2.875% 2/01/2027 1,000 +low 50s / +52.5a +50a (+/-2) +48 +48 48/46
Discover Financial Services BBB-/BBB+` 4.10% 2/09/2027 1,000 +190a +175a (+/-5) +170 +170 171/167
Estee Lauder Cos. Inc. A2/A+ 1.80% 2/07/2020 500 +55-60 +45a (+/-5) +40 +40 38/36
Estee Lauder Cos. Inc. A2/A+ 3.15% 3/15/2027 500 +90-95 +80 (+/-5) +75 +75 77/74
Estee Lauder Cos. Inc. A2/A+ 4.15% 3/15/2047 500 +125-130 +115a (+/-5) +110 +110 113/111
First Republic Bank Baa1/BBB+ 4.625% 2/13/2047 400 +high 100s
+187.5a
RG: +170a (+/-5)
+175a (+/-5)
+165 +165 164/160
GATX Corp. Baa2/BBB 3.85% 3/30/2027 300 +170a +150a (+/-3) +147 +147 149/146
IHS Markit Ltd. BB+/BBB 4.75% 2/15/2025 500 5.00% 4.75%a 4.75% +244 219/217
Vale Overseas Ltd.
(tap) New Total: $2bn
BBB-/BBB 6.25% 8/10/2026 1,000 5.45%a 5.20-5.25% 5.20% +278.3 269/265
Wells Fargo & Co. A2/AA- FRN 2/11/2022 2,000 3mL+95-100 3mL+93 the # 3mL+93 3mL+93 3mL+89/86

 

Indexes and New Issue Volume

Index levels are as of 12:00 noon ET.
*Denotes new record high

Index Open Current Change  
IG27 64.712 65.024 0.312
HV27 138.575 137.87 <0.705>
VIX 10.88 10.72 <0.16>  
S&P 2,307 *2,313 6
DOW 20,172 *20,242 70  
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $0.00 bn DAY: $0.00 bn
WTD: $14.40 bn WTD: $22.15 bn
MTD: $26.975 bn MTD: $37.225 bn
YTD: $199.358 bn YTD: $264.508 bn

 

Lipper Report/Fund Flows – Week ending February 8th    

     

  • For the week ended February 8th, Lipper U.S. Fund Flows reported an inflow of $4.932b into Corporate Investment Grade Funds (2016 YTD net inflow of $17.286b) and a net inflow of $441.718m into High Yield Funds (2016 YTD net inflow of $732.780m).
  • Over the same period, Lipper reported a net inflow of $854.782m into Loan Participation Funds (2016 YTD net inflow of $4.614b).
  • Emerging Market debt funds reported a net inflow of $358.189m (2016 YTD inflow of $502.693m).

 

IG Credit Spreads by Rating

The 10-day IG spread performance vs. the T10 across the ratings spectrum and how IG compared versus high yield:

Spreads across the four IG asset classes are an average 20.50 bps wider versus their post-Crisis lows!

 

ASSET CLASS 2/09 2/08 2/07 2/06 2/03 2/02 2/01 1/31 1/30 1/27 1-Day Change 10-Day Trend PC
low
IG Avg. 128 128 128 127 127 128 128 128 126 126 0 +2 106
“AAA” 75 76 75 75 74 75 76 77 75 71 <1> +4 50
“AA” 79 80 79 79 79 80 80 79 78 78 <1> +1 63
“A” 103 104 103 103 103 104 104 104 103 103 <1> 0 81
“BBB” 161 162 161 161 160 161 161 161 159 160 <1> +1 142
IG vs. HY 265 270 265 264 259 265 267 272 270 267 <5> <2> 228

 

IG Credit Spreads by Industry

…….and a snapshot of the major investment grade sector credit spreads for the past ten sessions:

Spreads across the major industry sectors are an average 24.74 bps wider versus their post-Crisis lows!

 

INDUSTRY 2/09 2/08 2/07 2/06 2/03 2/02 2/01 1/31 1/30 1/27 1-Day Change 10-Day Trend PC
low
Automotive 112 112 112 112 113 115 116 117 116 117 0 <5> 67
Banking 119 120 119 119 118 120 121 121 119 120 <1> <1> 98
Basic Industry 155 157 156 156 155 156 156 157 156 156 <2> <1> 143
Cap Goods 94 95 95 95 95 95 95 95 95 95 <1> <1> 84
Cons. Prod. 106 106 106 105 105 105 106 106 105 105 0 +1 85
Energy 157 159 157 157 156 157 157 157 154 154 <2> +3 133
Financials 139 141 141 142 141 143 144 144 142 143 <2> <4> 97
Healthcare 115 115 114 114 113 114 114 114 112 112 0 +3 83
Industrials 130 130 129 129 129 129 130 129 128 128 0 +2 109
Insurance 138 139 139 139 138 139 139 139 138 139 <1> <1> 120
Leisure 127 128 127 128 128 129 129 128 129 129 <1> <2> 115
Media 156 157 156 156 155 156 156 155 154 153 <1> +3 113
Real Estate 140 141 141 141 140 141 141 141 139 140 <1> 0 112
Retail 115 115 115 114 114 115 115 114 112 112 0 +3 92
Services 123 123 123 123 123 123 123 122 121 121 0 +2 120
Technology 104 105 104 104 103 105 105 105 103 101 <1> +3 76
Telecom 168 168 166 166 165 165 166 164 161 161 0 +7 122
Transportation 127 128 128 128 127 128 129 128 126 126 <1> +1 109
Utility 127 128 128 128 127 127 127 127 126 127 <1> 0 104

                                  

Economic Data Releases

 

TODAY’S ECONOMIC DATA PERIOD SURVEYED ESTIMATES ACTUAL NUMBER PRIOR NUMBER PRIOR REVISED
Import Price Index MoM January 0.3% 0.4% 0.4% 0.5%
Import Price Index ex Petroleum MoM January —- 0.0% <0.2%> <0.1%>
Import Price Index YoY January 3.4% 3.7% 1.8% 2.0%
U. of Michigan Sentiment February 98.0 95.7 98.5 —-
U. of Michigan Current Conditions February —- 111.2 111.3 —-
U. of Michigan Expectations February —- 85.7 90.3 —-
U. of Michigan 1 Year Inflation February —- 2.8% 2.6% —-
U. of Michigan 5-10 Year Inflation February —- 2.5% 2.6% —-
Monthly Budget Statement (2:00pm ET) January $45.0b —- <$27.5b> —-

 

*Sources: Bank of America/Merrill Lynch, Bloomberg, Bond Radar, Dow Jones

 

New Issue Pipeline (more…)

Grexit, Brexit and Frexit-Mischler Debt Capital Markets Comment
February 2017      Debt Market Commentary   

Quigley’s Corner 02.08.17- First Grexit, Then Brexit and Now..Frexit? Mischler Debt Market Comment

 

Investment Grade New Issue Re-Cap

IG Primary & Secondary Market Talking Points – A Citigroup tap

Global Market Recap

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

The Critically Important French Elections

The EU: It’s All Greek to Me

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

Rates Trading Lab

Tomorrow’s Calendar

 

2 IG Corporate issuers priced 5 tranches between them totaling $3.45b.  Additionally, 1 SSA issuer, BNG, priced a $2.25b 2-year for an all-in IG day total of $5.7b.

The WTD IG Corporate total is now $14.40b or 58% of this week’s syndicate midpoint average calling for $24.72b.

 

IG Primary & Secondary Market Talking Points – Mischler Serves as “passive” Jr. Co-Manager on Citigroup tap.

 

  • BP Capital Markets PLC added a fourth tranche, a $TBD 18-month FRN, to today’s earlier announced three-part 3-year tap, new 7s and 10s. 
  • The average spread from IPTs thru the launch/final pricing of today’s 5 IG Corporate-only new issues was <11.50> bps.
  • BAML’s IG Master Index tightened 1 bp to +127 vs. +128.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.21.  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +166 vs. +165.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $16.7b on Friday versus $22.5b on Thursday and $18.9b the previous Friday.
  • The 10-DMA stands at $20.6b.

 

Global Market Recap

 

  • U.S. Treasuries – rallied into supply for the second day. Curve flatter for second day.
  • Overseas Bonds – Big rally in Europe led by the long end despite heavy supply.
  • Stocks – mixed & little changed heading into the close.
  • Overseas Stocks – Europe mixed with slightly more green. Asia closed higher.
  • Economic – Non-event in U.S. & Europe. Weaker data in Japan.
  • Currencies – USD had small losses vs. all of the Big 5.
  • Commodities – Crude oil had a small gain despite very bearish inventory data.
  • CDX IG: +1.11 to 66.65
  • CDX HY: +3.07 to 331.64
  • CDX EM: -0.18 to 226.81

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

-Tony Farren

 

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

 

IG Corporate New Issuance This Week
2/06-2/10
vs. Current
WTD – $14.40b
February 2017
Forecasts
vs. Current
MTD – $26.975b
Low-End Avg. $23.74b 60.66% $90.65b 29.76%
Midpoint Avg. $24.72b 58.25% $91.96b 29.33%
High-End Avg. $25.70b 56.03% $93.26b 28.92%
The Low $15b 96.00% $85b 31.74%
The High $35b 41.14% $120b 22.48%

 

The Critically Important French Elections

mischler-frexit-french-election-

Okay so, we all understand that the first round of the French Presidential Elections are held on Sunday, April 23rd.  The most recent election polls show National Front leader Marine Le Pen ahead 26% versus 20.5% for Emmanuel Macron and 18.5% for a fast-sinking Francois Fillon whose fizzling campaign is embroiled in corruption charges. But then there is the run-off Presidential election that is held two weeks later on Sunday on May 7th.  Now, many of you may be very familiar with the concept of the run-off or second election but many are not. In the first April election it is clear that no Presidential candidate will win with the required number of votes or an absolute majority 40-45% with a winning margin of 5-15%.  As a result a run-off election is held between the two candidates with the most votes.  It’s that simple.

There is a history in France of moderate and even conservative parties capturing the liberal votes in an effort to thwart what was once a notoriously nationalistic leaning National Front founded and headed by Marine Le  Pen’s father Jean-Marie.  That is no more.  Marine re-shaped and re-branded the National Front party catapulting it into modern times making it more appealing for contemporary sensibilities while capturing its widest support in its history – thanks to an unlikely strategist named Florian Phillipot.  The first task on the docket toward reinvention of the NF was for Marine to oust her father as the party’s leader.  That was no small task for anyone let alone the daughter of the man at the top of the National Front.  He simply could not remain at the helm with his dated and nationalistic and often times offensive views on certain subjects.  Marine took over and has changed the perception of the NF in France and around the world to make it more palatable and at a critical juncture in history for France. 

 

What has emerged since 2009 when Marine took charge and Phillipot became the NF’s chief strategist, was to tap into France’s silent majority of working class people fed up with the bureaucracy of the European Union.  Having lived in France for five formative years from the ages of 11 thru 16 I know a bit more about French culture and society than the next person.  Make no mistake about it – the French invented the word B-U-R-E-A-U-C-R-A-C-Y.  I saw it at play during my tenure as head of syndicate at BNP Paribas before, during and after that painful merger.  I had seven reporting lines between New York, London and Paris.  It took 6 months to have ideas even considered.  “Bureaucracy” is my point.  French bureaucracy however, is the worst kind.

When I visited with my wife’s Uncle Jean who had been the long-time Police Commissioner of Lyon, France’s second largest city, and de factor gastronomic capital of the world, I sensed his frustration. Here was a man who was an active member of La Resistance during World War II and who saw society at the street level thru his long and respected career in law enforcement.  He was comparable to George Simenon’s Inspector Maigret.  He was very dedicated and hard-working guy.  He always carries an Opinel knife, eats fresh-baked baguette with cheese accompanied by the obligatory glass of Bordeaux.  The French culture wore him well and vice versa but he epitomizes today’s disgruntled, frustrated and concerned Frenchman.  He takes nothing for granted unlike the stigma associated with France that has been enjoying a quality of life for over a decade thanks to neighboring Germany.  He is distraught at the current direction and future of his country and relayed that his former “brothers in arms” the French gendarme are all equally disappointed and concerned. Does this sound familiar?


In 2002 when Le Pen senior made it to the second round of French elections, virtually all of France pooled together to oust him by showing support for Jacques Chirac.  It was more of a vote against Jean-Marie than a vote for Chirac. But today’s National Front, though conservative, is much more inclusive than people think. It would serve at this critical juncture to learn more about its reinvention since Le Pen and Phillipot took the reins. As Phillipot himself has said, “ I didn’t come into this party saying I’m going to go to war against Jean-Marie Le Pen……but he was increasingly out to provoke and his behavior became untenable.  Subsequent to Le Pen’s ouster he in turn said in a nationally broadcast interview “that he wished his daughter no longer bore his name.”

Le Pen and Phillipot took care of business. That business started in the home. They ousted Jean-Marie from his throne of leadership and created a veritable powerhouse National Front party that has been leading in all the polls in France. She is currently projected to win the April election. Meanwhile the conservative party’s candidate M. Fillon had become embroiled in a mess surrounding his having paid his wife hundreds of thousands of dollar (equivalent) over years in a position she never showed up to work for.  Once his public relations handlers attempted to manage that fiasco, it was then revealed that he did the same for his two sons.  The result? He is now running in third place.


The NF has appealed to a similar type of populist movement in France analogous to what we saw here in the U.S. It’s somewhat of a silent majority that feels it needs to restrain open support of Le Pen for fear of being ostracized, criticized and labeled.  But once again, come election day, people will cast their ballot in private. It will be between themselves and the man upstairs.  That’s when voices will once again be heard and reverberate throughout the world.

Should Le Pen becomes France’s next president it will be thanks to our rapidly changing world.  What happened here in the United States is playing out across Europe as well. We saw BREXIT first.  Be prepared for FREXIT next.  It can very likely happen and the EU, which according to many, was destined for failure from the beginning, will be focused on putting all its energies into as orderly an unwind as can be orchestrated.  There have and always will be too many borders, too many cultures, too many histories, too many languages and for that matter too many cuisines in Europe for it to function as a quasi-United States of Europe.  It’s coming so, be prepared as the world reconfigures its alliances, it defense strategies and its economies.  Change is something that NEVER comes easy to any one person let alone countries, continents and hemispheres.  Get ready. If you don’t have the financial stomach for it well, continue buying into the full trust and faith of the United States of America – it’s called BUY TREASURIES.  Yields will tumble despite the Fed’s hawkish tone that will continue when Chair Yellen speaks on February 14th.  If you are a corporate treasury/funding team operative get ready to take full advantage.  As I pointed out yesterday after a relatively long silence for me and being more focused on the Microsoft, AT&T and Apple deals that Mischler was involved in last week, black-outs are upon us and you and your companies will look brilliant when you issue debt in here.  The CT10 closed today 6 bps tighter versus yesterday’s closing yield.  That’s now 26 bps tighter in the last 8 weeks. It’s going lower…….Rates will continue to rally and rates will continue to go lower……..much lower.

 

As Charles de Gaulle once famously said, “Once upon a time there was an old country, wrapped up in habit and caution.  We have to transform our old France into a new country and marry it to its time.”  That time is now.  The National Front would agree that if not at this juncture in time, well, France will likely continue along the same do nothing bureaucratic path more humorously captured by the late great General Norman Schwarzkopf who said “Going to war without France is like going hunting without an accordion.”

 

The EU: It’s All Greek to Me

  eu-faces-collapse-mischler-commentary

To say “Greece is back” would be a gross misrepresentation.  Greece never went away.  The disaster was always there it’s just that so many other EU issues have stolen it’s spotlight……BREXIT, immigration, French elections, etc.  Well, Greece has returned to the proscenium.  Today the IMF effectively announced that Grexit concerns are back on the table. Okay, so what do I mean by “effectively?”  Well, a senior IMF staff member said “Greece cannot grow out of its debt problem.”  Let’s go straight to the numbers here shall we?  “Greek debt will reach 175% of GDP in 3 years…….275% of GDP by 2060.”  Shall I continue?  Sure, why not?  The IMF report just out today also says “our analysis suggests that Greece’s public debt is highly unsustainable…….Even with full implementation of policies agreed under the European Stability Mechanism or ESM program, public debt and financing needs will become EXPLOSIVE!” (caps are mine!)  The National Front, to use an example, isn’t taking a “jump ship” policy approach toward the EU because of this.  The National Front foresaw this year’s and years ago and never wanted to be part of the EU to begin with. That WILL resonate with French voters in April and May elections.  The problems are literally just beginning in Europe.  National Front knows it and wants to take the precautions necessary with their nation to take more control of the French Revolution’s motto of Liberté, égalité, fraternité ……… (translated – freedom, equality and fraternity)……while it still has the chance. Trouble + Concern = Flight-to-Quality folks. You’ll be seeing that clearly illustrated very shortly.  OOPAH!!!!

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

 

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

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
2/06
TUES.
2/07
WED.
2/08
AVERAGES
WEEK 1/30
AVERAGES
WEEK 1/23
AVERAGES
WEEK 1/16
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
AVERAGES
WEEK 12/26
New Issue Concessions <3.62> bps <7.5> bps 5.25 bps <0.87> bps 1.13b bps 3.42 bps 0.85 bps 2.25 bps N/A
Oversubscription Rates 4.25x 4.56x 2.18x 3.12x 3.29x 2.40x 2.85x 2.45x N/A
Tenors 12.83 yrs 16.65 yrs 6.40 yrs 11.60 yrs 6.67 yrs 12 yrs 7.83 yrs 6.52 yrs N/A
Tranche Sizes $744mm $850mm $690mm $1,311 yrs $845mm $1,123mm $927mm $859mm N/A
Avg. Spd. Compression
IPTs to Launch
<19.17> bps <25.40> bps <11.5> bps <19.77> bps <18.20> bps <14.69> bps <18.77> bps <15.27> bps N/A

 

New Issues Priced (more…)

Sell-Side FI Syndicate Desks Sound Off: New IG Debt Issuance Forecasts
February 2017      Debt Market Commentary   

Quigley’s Corner 02.03.17– Fixed Income Syndicate Seers Forecast Next Week’s New IG Debt Issuance

 

Investment Grade New Issue Re-Cap

IG Primary & Secondary Market Talking Points

Global Market Recap

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

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

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 Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 

It was a very welcome no print Friday today.  It gives me an opportunity on behalf of Team Mischler to thank Microsoft, AT&T and Apple for inviting us to serve this week on their multi-tranche transactions.  Thanks also to the leads who worked with us at HSBC – on Microsoft; Citigroup – on AT&T  and Goldman Sachs on Apple. All greatly appreciated!

But I know why you all checked in this evening – it’s to hear what the soothsayers of syndicate say about next week’s investment grade corporate new issue volume.  They all once again participated in my survey and their numbers and thoughts await you below.  Next week there is a lack of any earth shattering, market moving economic data and although Fed members will be speaking here and there it opens the door for further issuance.  Considering the very strong market tone that we’re going out with today in which 75% of this week’s IG Corporate new issues are tighter to MUCH tighter, I’d have to once again take the upside of forecasts.  But heck, we all know you want to hear from the top 23 under writers so, let’s first re-cap the day and then it’s on to the “Best and the Brightest” that syndicate has to offer. 

IG Primary & Secondary Market Talking Points

  • Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 36 deals that printed, 27 tightened versus NIP for a 75.00% improvement rate while 6 widened (16.75%) and 3 were flat (8.25%).
  • For the week ended January 25th, Lipper U.S. Fund Flows reported an inflow of $2.657b into Corporate Investment Grade Funds (2016 YTD net inflow of $12.354b) and a net inflow of $412.595m into High Yield Funds (2016 YTD net inflow of $291.062m).
  • 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 1.21.  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +166 vs. +165.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $22.5b on Thursday versus $21.6b on Wednesday and $21.2b the previous Thursday.
  • The 10-DMA stands at $20.5b.

 

Global Market Recap

  • U.S. Treasuries – Rallied after Employment then sold off hard on Trump regulation talk & Williams.
  • Overseas Bonds – Wild day for JGB’s. Core Europe better & balance struggled.
  • Stocks – Strong rally in the U.S. Europe closed higher & Asia lower.
  • Economic – U.S. Employment Report was mixed while the other data was solid.
  • Overseas Economic – China & Japan data weaker. Europe data was a mixed bag.
  • Currencies – USD traded better overnight than it did during the NY session.
  • Commodities – Crude oil small gain & gold small loss. Copper & natural gas were weak.
  • CDX IG: -1.55 to 63.99
  • CDX HY: -22.66 to 323.55
  • CDX EM: -3.93 to 226.36

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

-Tony Farren

 

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

 

IG Corporate New Issuance This Week
1/30-2/03
vs. Current
WTD – $44.575b
February 2017
Forecasts
vs. Current
MTD – $12.575b
Low-End Avg. $20.96b 212.67% $90.65b 13.87%
Midpoint Avg. $21.63b 206.08% $91.96b 13.67%
High-End Avg. $22.30b 199.89% $93.26b 12.48%
The Low $10b 445.75% $85b 14.79%
The High $27b 165.09% $120b 10.48%

 

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

 

The investment grade fixed income new issuance forecast question posed to the “Best and the Brightest” FI syndicate desk professionals early this morning was framed as follows:

Well, here’s what we did this week:

  • January 2017 broke the all-time, all-in monthly volume record $227.283b vs. $213.40b (May 2016).
  • WTD, we surpassed the syndicate midpoint average forecast with a 2.12x bid-to-cover rate or $44.575b vs. $21.63b. (206.08%!)
  • February MTD we priced over nearly 14%% of the syndicate forecasts in just two days $12.57b vs. $91.96b.
  • All-in YTD IG Corporate and SSA issuance stands at $242.358b which simply means we are on pace to price $2.644 Trillion in 2017!  HOOOAH. That won’t happen but it’s nice to put things in their proper perspective. 

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

  • NICS:  <0.87> bps
  • Oversubscription Rates: 3.12x
  • Tenors:  11.60 years
  • Tranche Sizes: $1,311mm
  • Spread Compression from IPTs to the Launch: <19.77> bps


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

  • NICs tightened 2.00 bps to <0.87> bps vs. 1.13 bps.
  • Over subscription or bid-to-cover rates contracted by 0.17x to 31.12x vs. 3.29x. 
  • Average tenors extended dramatically by 4.93 years to 11.60 years vs. 6.67 years.
  • Tranche sizes increased by $466mm to $1,311mm vs. $845mm.
  • Spread compression from IPTs to the launch/final pricing of this week’s 28 IG Corporate-only new issues tightened by <1.57> bps to <19.77> vs. <18.20> bps.
  • Standard and Poor’s Investment Grade Composite Spreads widened 2 bps to +166 vs. +164.
  • Week-on-week, BAML’s IG Master Index widened 2 bps to +128 vs. +126. 
  • Spreads across the four IG asset classes widened 2.00 bps to 21.00 vs. 19.00 bps as measured against their post-Crisis lows. 
  • The 19 major industry sectors widened 1.20 bps to 25.20 vs. 24.00 bps also against their post-Crisis lows.

Corporate America has posted earnings.  Lots of issuers have exited blackouts.  Next week we have a very light calendar insofar as economic data releases are concerned.  Japan’s Abe meets with President Trump but that’s not until a week from Saturday.  There are several Fed members that will be speaking next week but we are in a steady-as-she-goes mode and I strongly suspect a big week next week.    

And now after my work and thoughts I ask you my favorite question of the week gift to you I ask, “what are your numbers and thoughts for next week’s IG Corporate new issue volume.

Thank you very much! -Ron”

 

The “Best and the Brightest” in Their Own Words

 

……..……and here are their formidable responses:*

 

*Responses to the QC weekly canvass of the top 23 investment bank fixed income syndicate desks are available only via direct email to distribution list recipients of Quigley’s Corner.

 

Syndicate IG Corporate-only Volume Estimates for Next Week

IG Corporate New Issuance Next Week
2/06-2/10
Low-End Avg. $23.74b
Midpoint Avg. $24.72b
High-End Avg. $25.70b
The Low $15b
The High $35b

A Look at How the Voting Brackets Broke-Out for Next Week

 

Next Week
2/06-2/10
1: 15b
1: 15-20b
2: 20b
3: 20-25b
9: 25b
4: 25-30b
1: 30b
1: 31b
1: 30-35b

 

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 weekend and enjoy the Super Bowl!

Ron Quigley, Managing Director & Head of Fixed Income Syndicate

 

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

 

Here is this week’s day-by-day re-cap of the five key primary market driver averages for IG Corporatesonly followed by this week’s and the prior five week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
1/30
TUES.
1/31
WED.
2/01
TH.
2/02
FRI.
2/03
THIS WEEK’S
AVERAGES
AVERAGES
WEEK 1/23
AVERAGES
WEEK 1/16
AVERAGES
WEEK 1/09
AVERAGES
WEEK 1/02
AVERAGES
WEEK 12/26
New Issue Concessions 7 bps 5.36 bps N/A <2.82> bps N/A <0.87> bps 1.13b bps 3.42 bps 0.85 bps 2.25 bps N/A
Oversubscription Rates 2.68x 2.89x N/A 3.71x N/A 3.12x 3.29x 2.40x 2.85x 2.45x N/A
Tenors 14.11 yrs 12.37 yrs N/A 9.15 yrs N/A 11.60 yrs 6.67 yrs 12 yrs 7.83 yrs 6.52 yrs N/A
Tranche Sizes $1,983mm $1,179mm N/A $967mm N/A $1,311 yrs $845mm $1,123mm $927mm $859mm N/A
Avg. Spd. Compression
IPTs to Launch
<17.22> bps <19.54> bps N/A <21.88> bps N/A <19.77> bps <18.20> bps <14.69> bps <18.77> bps <15.27> bps N/A

 

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

Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 36 deals that printed, 27 tightened versus NIP for a 75.00% improvement rate while 6 widened (16.75%) and 3 were flat (8.25%).

Issues are listed from the most recent pricings at the top working back to Monday at the bottom.  Thanks! –RQ

 

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED TRADING
Apple Inc. Aa1/AA+ FRN 2/08/2019 500 3mL+equiv 3mL+equiv 3mL+8 3mL+8 3mL+7/5
Apple Inc. Aa1/AA+ 1.55% 2/08/2019 500 +60a +40a (+/-2) +38 +38 34.5/32
Apple Inc. Aa1/AA+ FRN 2/07/2020 500 3mL+equiv 3mL+equiv 3mL+20 3mL+20 3mL+17/15
Apple Inc. Aa1/AA+ 1.90% 2/07/2020 1,000 +65a +50a (+/-5) +45 +45 43/41
Apple Inc. Aa1/AA+ FRN 2/09/2022 1,000 3mL+equiv 3mL+equiv 3mL+50 3mL+50 3mL+45/43
Apple Inc. Aa1/AA+ 2.50% 2/09/2022 1,500 +80a +60a (+/-2) +58 +58 58/56
Apple Inc. Aa1/AA+ 3.00% 2/09/2024 1,750 +100a +80a (+/-5) +75 +75 71/69
Apple Inc. Aa1/AA+ 3.35% 2/09/2027 2,250 +110a +90a (+/-2) +88 +88 83/81
Apple Inc. Aa1/AA+ 4.25% 2/09/2047 1,000 +140a +120a (+/-5) +115 +115 111/109
Johnson Controls Int’l. PLC Baa1/BBB+ 4.50% 2/15/2047 500 +170a +150a (+/-5) +145 +145 139/138
PNC Financial Services A3/NR FRN 8/07/2018 575 N/A N/A N/A 3mL+25 3mL+24/23
Standard Industries Inc. Ba2/BBB- 5.00% 11/15/2026 500 low 5.00%
5.125
N/A N/A +253 254/250
US Bancorp A3/BBB+ 5.30% PerpNC10 1,000 5.625%a 5.35%a (+/-5) 5.30% $100.00 283/278
Province of Ontario Aa2/AA- 2.40% 2/08/2022 2,500 MS +44a MS +42 MS +42 +49.35 46.5/44.5
AT&T Inc. Baa1/A- 3.20% 3/01/2022 1,250 +150a +135a (+/-5) +130 +130 125/123
AT&T Inc. Baa1/A- 3.80% 3/01/2024 750 +175a +160a (+/-5) +155 +155 150/147
AT&T Inc. Baa1/A- 4.25% 3/01/2027 2,000 +195a +185a (+/-5) +180 +180 170/168
AT&T Inc. Baa1/A- 5.25% 3/01/2037 3,000 +235a +225a (+/-5) +220 +220 207/204
AT&T Inc. Baa1/A- 5.45% 3/01/2047 2,000 +250a +245a (+/-5) +240 +240 229/226
AT&T Inc. Baa1/A- 5.70% 3/01/2057 1,000 +275a +270a (+/-5) +265 +265 257/252
Bank of NY Mellon Corp. A1/AA- 2.60% 2/07/2022 1,250 +90a +80a (+/-5) +75 +75 74/72
Bank of NY Mellon Corp. A1/AA- 11NC10 2/07/2028 1,000 +110-115/+112.5a +105a (+/-5) +100 +100 97/93
Commw’th. Bk. of Australia Aa2/NA FRN 8/03/2018 200 N/A N/A N/A 3mL+35 3mL+37/35
National Rural Utilities Coop. A1/A+ 2.95% 2/07/2024 450 +85-90/+87.5a +75-80 +75 +75 73/71
Seagate HDD Cayman Baa3/BBB- 4.25% 3/01/2022 750 +high 200s
+287.5a
+250a (+/-10) +240 +240 248/243
Seagate HDD Cayman Baa3/BBB- 4.75% 3/01/2024 500 +low 300s
+312.5a
+285 (+/-10) +275 +275 280/275
Crown Castle Int’l. Corp. Baa3/BBB- 4.00% 3/01/2027 500 +175-180 +160a (+/-3) +157 +157 157/155
Microsoft Corp. Aaa/AAA 1.85% 2/06/2020 1,500 +60a +45a (+/-5) +40 +40 35/33
Microsoft Corp. Aaa/AAA 2.40% 2/06/2022 1,750 +70a +55a (+/-5) +50 +50 47/46
Microsoft Corp. Aaa/AAA 2.875% 2/06/2024 2,250 +90a +75a (+/-5) +70 +70 59/57
Microsoft Corp. Aaa/AAA 3.30% 2/06/2027 4,000 +100a +90a (+/-5) +85 +85 77/75
Microsoft Corp. Aaa/AAA 4.10% 2/06/2037 2,500 +115a +105a (+/-5) +100 +100 88/87
Microsoft Corp. Aaa/AAA 4.25% 2/06/2047 3,000 +130a +120a (+/-5) +115 +115 106/104
Microsoft Corp. Aaa/AAA 4.50% 2/06/2057 2,000 +155a +145a (+/-5) +140 +140 129/126
USAA Capital Corp. Aa1/AA FRN 2/01/2019 350 3mL+high30s/
+37.5a
3mL+23-25 3mL+23 3mL+23 3mL+23
IFC
(tap) New Total: $750mm
Aaa/AAA FRN 12/15/2021 250 N/A 3mL+13a 3mL+13 3mL+13 3mL+15/14

 

Indexes and New Issue Volume

Please note that the below index levels are as of 4:30pm ET.
*Denotes new tight.

 

Index Open Current Change
IG27 65.548 63.605 <1.943>
HV27 138.23 138.31 0.08
VIX 11.93 10.95 <0.98>
S&P 2,280 2,297 17
DOW 19,884 20,071 187
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $0.00 bn DAY: $0.00 bn
WTD: $44.575 bn WTD: $47.325 bn
MTD: $12.575 bn MTD: $15.075 bn
YTD: $184.958 bn YTD: $242.358 bn

 

Lipper Report/Fund Flows – Week ending January 25th     

     

  • For the week ended January 25th, Lipper U.S. Fund Flows reported an inflow of $2.657b into Corporate Investment Grade Funds (2016 YTD net inflow of $12.354b) and a net inflow of $412.595m into High Yield Funds (2016 YTD net inflow of $291.062m).
  • Over the same period, Lipper reported a net inflow of $991.469m into Loan Participation Funds (2016 YTD net inflow of $4.760b).
  • Emerging Market debt funds reported a net outflow of $21.098m (2016 YTD inflow of $144.504m).

 

IG Credit Spreads by Rating

The 10-day IG spread performance vs. the T10 across the ratings spectrum and how IG compared versus high yield:

Spreads across the four IG asset classes are an average 21.00 bps wider versus their post-Crisis lows. (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.

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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…)

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.

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…)