Browsing articles tagged with "mischler Archives - Mischler Financial Group"
Qualcomm Kills It With Mega Bond Deal; QC Geopolitical Risk Monitor
May 2017      Debt Market Commentary   

Quigley’s Corner 05.19.17- Qualcomm 11b Debt Deal 3.33x Oversubscribed; the QC Geopolitical Risk Monitor

Below is the opening extract from Quigley’s Corner aka “QC”  Friday May 19, 2017  edition distributed via email to institutional investment managers and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans.

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

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

 

Investment Grade New Issue Re-Cap – QualComm (NASDAQ: QCOM) Prices Largest Single Friday Issuer Deal Ever!
A Look at Qualcomm’s Book Splits and NICs Per Tranche

Today’s IG Primary & Secondary Market Talking Points

The “QC” Geopolitical Risk Monitor

Syndicate IG Corporate-only Volume Estimates This Week and May

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

Syndicate IG Corporate-only Volume Estimates for Next Week

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

New Issues Priced

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

Lipper Report/Fund Flows – Week ending May 17th         

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

 

Qualcomm Inc. wasted no time taking full advantage of a favorable rate environment what with the CT10yr yielding 2.23% or 11bps tighter than Monday and a full 18 bps tighter versus 7 sessions ago. Today the semiconductor giant priced an $11mm 9-part transaction across 2-, 3- and 5.5-year FXD/FRNS as well as 7s/10s and 30s. Last evening I expressed concern of potential congestion in the IG dollar primary markets for next week given yesterday’s zero print day and Wednesday that only hosted only 3 issuers and 4 tranches totaling $1.35b.  As a result, many issuers stood down this week while the new issue pipeline swelled to a total of 15 deals as of this writing.  A large part of that is expected to hit the tapes next week which has four days to get business done as we enter the long Memorial Day weekend while ushering in summer.  As a result, when Qualcomm hit this morning’s tape I was not surprised at all. It makes perfect sense as the issuer owned the leaderboard with nothing in its way.  Trump flew overseas today for a 9-day foreign trip and hopefully leaving “swamp talk” behind for the time being.  Market tone is firm as all signs pointed toward – P-R-I-N-T!

Today ranks up there as one of the largest single Friday issuance days in our IG dollar DCM. Congrats to Qualcomm and the leads.

Qualcomm’s $11b mega deal garnered a final cumulative order book total of $36.65b or 3.33-times oversubscribed. 

A Look at Qualcomm’s Book Splits and NICs Per Tranche

QCOM Size Final Book
Size
Final
Bid-to-Cover
NICs
2yr FRN $750mm $2.10b 2.80x 10 bps
2yr FXD $1.25b $3.00b 2.40x 10 bps
3yr FRN $500mm $1.70b 3.40x 10 bps
3yr FXD $1.50b $5.40b 3.60x 10 bps
5.5yr FRN $500mm $1.85b 3.70x 10 bps
5.5yr FXD $1.50b $5.50b 3.67x 10 bps
7yr FXD $1.50b $4.50b 3.00x 10 bps
10yr FXD $2.00b $6.50b 3.25x 5 bps
30yr FXD $1.50b $6.10b 4.07x <5> bps

 

  • The IG Corporate WTD total is now 22% above this week’s syndicate midpoint average forecast or $36.30b vs. $29.73b.
  • MTD we’ve now priced just above 88% of the IG Corporate mid-range syndicate projection for May or $108.938b vs. $123.42b.
  • There are 15 IG Corporate, Yankee and/or SSA new issues in the IG credit pipeline.
  • The all-in IG Corporate plus SSA MTD total is now $121.338b.

 

Today’s IG Primary & Secondary Market Talking Points

 

  • For the week ended May 17th, Lipper U.S. Fund Flows reported an inflow of $3.101b into Corporate Investment Grade Funds (2017 YTD net inflow of $54.978b) and a net inflow of $649.528m into High Yield Funds (2017 YTD net outflow of $5.441b).
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 9 IG Corporate-only new issues was <16.11> bps.
  • BAML’s IG Master Index widened 1 bp to +119 versus +118.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS widened 1 bp to 1.13 versus 1.12.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +162.  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 Thursday versus $17.9b on Wednesday and $17.9b the previous Thursday.
  • The 10-DMA stands at $17.3b.

 

The “QC” Geopolitical Risk Monitor

*Additions in bold.

 

Risk Level/Main Factor Geopolitical Risks
HIGH
Asian Political Tensions
·           N. Korean nuclear intentions & ballistic missile experiments could reach Japan & perhaps U.S.

·           Tensions between North Korea  (pop: 24mm) & South Korea (pop: 44mm).

·           Dictator Kim Jong-Un increasingly belligerent and irreverent to international community.

·           Disruption of political landscape in the Pacific Rim.

ELEVATED
BREXIT Fallout
·           Contentious and exhaustive U.K./EU settlement payout negotiations over BREXIT.

·           Independence referendum revisited in Scotland and with support for a vote in Ireland.

·           Potential for receding U.K. influence given England, Wales and Isle of Man.

·           Irish unification?

CAUTION
Italian Elections
·          Highly fractious Italian political landscape. 64 governments in 72 Post WWII years.

·          5 Star Movement & EU skeptic parties have more influence than in other EU national elections.

·          As Italian elections approach, EU risks increase significantly./Italian debt-to-GDP ratio is 133%.

·          A referendum vote could result in a “QUITALY”/Also, China hard landing

MODERATE
“Dysfunction Junction”
·          U.S. partisan politics reach zenith combined with media war against Trump.

·          Will the Donald be able to fulfill campaign promises & how long before his tax reform plan?

·          Russia in expansion mode/Syria/Terrorism/Civil unrest in Venezuela/Brazil’s corruption scandal.

·          Russia meddling in international elections.

MARGINAL
2018 U.S. Recession
·          Trump tax reform challenges & consensus GOP support to pass legislation questioned.

·          Reliant on Italian election outcome/Avoidance of Korean conflict.

·          Perception of U.S. leadership in international community.

·          Potential mid-term election loss to Democrats in Nov. 2018 will impede any progress.

 

Syndicate IG Corporate-only Volume Estimates This Week and May

 

IG Corporate New Issuance This Week
5/15-5/19
vs. Current
WTD – $36.30b
May 2017
Forecasts
vs. Current
MTD – $108.938b
Low-End Avg. $28.69b 126.52% $122.27b 89.10%
Midpoint Avg. $29.73b 122.10% $123.42b 88.27%
High-End Avg. $30.77b 117.97% $124.56b 87.46%
The Low $20b 181.50% $100b 108.938%
The High $40b 90.75% $150b 72.63%

 

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

 

I am happy to announce that the “QC” once again received 100% unanimous participation from all 24 syndicate desks surveyed for today’s “Best & Brightest” edition!  19 of those participants are among 2017’s YTD top 21 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  23 are in the top 27 of that same 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 81.78% 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. 

My weekly technical data re-cap and question posed to the “Best and the Brightest” early this morning was framed as follows:

 

Here are this week’s IG new issue volume talking points:

 

  • The IG Corporate WTD total is now over 22% above this week’s syndicate midpoint average forecast or $36.30b vs. $29.73b.
  • MTD we’ve priced more than 88% of the syndicate projection for May or $108.938b vs. $123.42b.
  • The all-in MTD total (IG Corporates plus SSA) currently stands at $121.338b.
  • As of today, the YTD IG Corporate-only volume is $585.314b vs. $579.644 on May 19th, 2016 or 0.97% more than a year ago.
  • The all-in or IG Corporate plus SSA YTD volume is $728.956b vs $754.793 on May 19th, 2016 or <3.42%> less than last the year ago total.

 

Here are this week’s five key primary market driver averages from the 30 IG Corporate-only deals that priced:

 

o   NICS:  1.24 bps

o   Oversubscription Rates: 3.20x

o   Tenors:  8.69 years

o   Tranche Sizes: $931mm

o   Spread Compression from IPTs to the Launch: <17.81> bps


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

  • Average NICs widened 1.04 bps this week to 1.24 bps vs. <0.20>.
  • Over subscription or bid-to-cover rates, the measure of demand, increased 0.48x to 3.20x vs. 2.72x. 
  • Average tenors extended by a mere 0.03 years to 8.69 years vs. 8.66 years.
  • Tranche sizes increased by $129mm to $931mm vs. $802mm.
  • Spread compression from IPTs to the launch/final pricing of this week’s 42 IG Corporate-only new issues widened <1.70> bps to <17.81> bps vs. <19.51> bps.
  • Standard and Poor’s Investment Grade Composite Spreads widened 1 bp to +162 vs. +161.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS thru this morning widened 1 bp to 1.13 vs. 1.12. 
  • Week-on-week, BAML’s IG Master Index widened by 1 bp to +119 vs. +118. 
  • Spreads across the four IG asset classes widened 0.75 bps to 13.00 bps vs. 12.25 as measured against their post-Crisis lows. 
  • The 19 major industry sectors also widened 0.47 bps to 17.26 vs. 16.79 bps against their post-Crisis lows.
  • For the week ended May 17th, Lipper U.S. Fund Flows reported an inflow of $3.101b into Corporate Investment Grade Funds (2017 YTD net inflow of $54.978b) and a net inflow of $649.528m into High Yield Funds (2017 YTD net outflow of $5.441b).

Entering today’s Friday’s session here’s how much we issued this week:

  • IG Corps: $36.30b
  • All-in IG (Corps + SSA): $41.30b

The Trump Slump and Beltway Dysfunction disrupted markets Wednesday and Thursday. Media allegations of a Russian-Trump election scandal and accusations of a Trump attempt to strong arm ex-FBI chief James Comey resulted in a crisis of confidence on Capitol Hill.  Late Thursday afternoon, however, it was revealed that Comey testified under Senate oath on May 3rd saying the Trump Administration “DID NOT pressure the FBI to halt any investigation for political purposes.”  The market will now be able to get back to business.  WIRP currently indicates a 90% chance of a June Fed rate hike vs. 100% last Friday. North Korea continues test firing missiles with plans of yet another nuclear test. Next week is the last week before our long Memorial Day weekend and kick-off to summer.  There are 15 IG Corporate, Yankee and or EM new issues in the pipeline that we know about. Becton, Dickinson and Tyson Foods, among others loom large in the week ahead.

Along those lines what are your thoughts and numbers for next week’s IG Corporate new issue volume and thank you in advance for your time and contribution!

 

The “Best and the Brightest” in Their Own Words

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Municipal Debt Deals Week of April 03- Mischler Muni Market Update
April 2017      Muni Market   

Mischler Muni-bond Market Outlook for the week commencing 04.03.17 looks back to last week’s metrics and provides a lens focused on pending municipal debt deals scheduled. 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 $5.1 billion.  This week volume is expected to be $7.3 billion.  The negotiated market is led by $778.0 million general obligation bonds for The Commonwealth of Massachusetts, including $100 million new money green bonds.  The competitive market does not have any deals over $100 million.

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 belowmuni-market-mischler

Mischler Financial Group debt capital market expertise includes Debt Origination, Distribution, Primary Market Access and Secondary Market trading across the full spectrum of fixed income markets. Our value-add is courtesy of our 18-member team of debt market veterans. a team that 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 $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, 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.

This document may be not reproduced in any manner without the permission of Mischler Financial Group. Although the statements of fact have been obtained from and are based upon sources Mischler Financial Group believes reliable, we do not guarantee their accuracy, and any such information may be incomplete.  All opinions and estimates included in this report are subject to change without notice.  This report is for informational purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security.   Veteran-owned broker-dealer Mischler Financial Group, its affiliates and their respective officers, directors, partners and employees, including persons involved in the preparation of this report, may from time to time maintain a long or short position in, or purchase or sell a position in, hold or act as market-makers or advisors or brokers in relation to the securities (or related securities, financial products, options, warrants, rights, or derivatives), of companies mentioned in this report or be represented on the board of such companies. Neither Mischler Financial Group nor any officer or employee of Mischler Financial Group or any affiliate thereof accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.

 

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Rate Hike Coming..Beige Book Talking Points-Mischler Debt Market Comment
March 2017      Debt Market Commentary   

Quigley’s Corner 03.01.17-Rate Hike IS Coming; Fed Beige Book Talking Points

 

Investment Grade New Issue Re-Cap – Dow Breaks 21,000 – Odds of March Rate Hike Rise From 40% to 80% in 3 Sessions!

IG Primary & Secondary Market Talking Points

Global Market Recap

The Federal Reserve Beige Book Talking Points – All You Need to Know

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

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 February 22nd    

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

7 IG Corporate issuers tapped the dollar DCM today pricing 12 tranches between them totaling $9.275b.  The SSA space hosted 2 issuers across 4 tranches including a $5b 3-part from the Sultanate of Oman that pumped up the all-in IG day totals to 9 issuers, 16 tranches and $14.625b. March has certainly started off on the right foot.
The WTD total is now 52% more than this week’s syndicate midpoint average forecast or $38.825b vs. $25.44b.
The all-in (IG Corporate plus SSA WTD volume total is now $51.425b.

Deregulation, cutting corporate taxes, focusing on American manufacturing and jobs while negotiating with America’s interests first and building a strong national defense equates to GROWTH.  Growth will cause rates to rise, rising rates will swell the stock market and bank stocks should get back to a semblance of their true values among many other things.
IG Primary & Secondary Market Talking Points

 

  • Mercury General Corp. upped its 10-year Senior Notes new issue to $375mm from $350mm at the launch and at the tightest side of guidance.
  • Telus Corp. increased its 10-year Senior Notes new issue to $500mm from $350mm at the launch.
  • Brixmor Operating Partnership LP upsized today’s 10-year Senior Notes new issue to $400mm from $300mm at the launch and at the tightest side of guidance.
  • The average spread from IPTs thru the launch/final pricing of today’s 12 IG Corporate-only new issues was <19.00> bps.
  • BAML’s IG Master Index tightened 1 bp to +121 vs. +122.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to 1.15 vs. 1.16 setting yet another new tight since November 3rd, 2014.
  • 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 $22.7b on Tuesday versus $15.8b on Monday and $17.8b the previous Tuesday.
  • The 10-DMA stands at $20b.

 

Global Market Recap

 

  • U.S. Treasuries – had a very difficult day thanks to the Fed Speak & President Trump.
  • Overseas Bonds – Europe hit hard with USTs and JGB’s also closed in the red.
  • 3mth Libor – Set at the highest yield (1.09278%) since April 2009.
  • Stocks – Big rally for U.S. stocks as S&P, Dow & NASDAQ traded at all-time highs.
  • Overseas Stocks – Very strong day for Europe & the Nikkei. China & HS with small gains.
  • Economic – Full U.S. calendar with some very good & not so good data.
  • Fed’s Beige Book at odds with the very hawkish Fed Speak this week.
  • Overseas Economic – The data in China, Japan & Europe overall was positive.
  • Currencies – Big rally for USD overnight & gave a little back during NY hours.
  • Commodities – CRB, copper & wheat were higher while crude oil & gold were lower.
  • CDX IG: -2.57 to 60.01 (trade at 59.856 the tightest since 2014)
  • CDX HY: -11.47 to 305.44
  • CDX EM: -7.51 to 213.30

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

-Tony Farren

 The Federal Reserve Beige Book Talking Points – All You Need to Know

 

  • Near-term business optimism eased since the last report.
  • Economy grew at a modest to moderate pace through mid-February.
  • Job market is tight amid little price pressure change.
  • There were a few districts that saw a pickup in wage growth.
  • Businesses expect prices to rise modestly in the months ahead.
  • Most Fed regions say prices were up modestly to moderately.
  • Some districts saw widening labor shortages.
  • Employment expanded moderately in most of the country.
  • Staffing firms saw a “brisk business for this time of year”.
  • Energy, home-building and house sales are all growing moderately.
  • Auto sales were up in most districts; tourism mostly stronger.
  • New York Fed prepared the Beige Book from early January to February 17th.

 

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 and Head of Fixed Income Syndicate (more…)

Philip Morris Smokes DCM with 5-part Debt Deal-Mischler Comment
February 2017      Debt Market Commentary   

Quigley’s Corner 02.15.17-Philip Morris Deal “Smokes” Primary DCM with $2.5bil 5-part

 

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

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 February 8th    

IG Credit Spreads by Rating     

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

UST Resistance/Support Table

Tomorrow’s Calendar

 

4 IG Corporate issuers priced 9 tranches between them totaling $5.65b.  The SSA space, however, remained quiet.

The WTD IG Corporate total is now $22.25b or 4% more than this week’s syndicate midpoint average estimate calling for $21.33b. In fact, WTD we priced 85.50% of the highest projection in my survey which was $26b.

 

The S&P, Dow and Nasdaq all reached new all-time highs again today!

 

IG Primary & Secondary Market Talking Points

 

  • The average spread from IPTs thru the launch/final pricing of today’s 9 IG Corporate-only new issues was <20.78> bps.
  • BAML’s IG Master Index tightened 2 bps to +124 vs. +126.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to 1.19 vs. +120 marking a new tight..  The “LUACOAS” wide since 2012 is +215.  +120 is the new tight.
  • Standard & Poor’s Investment Grade Composite Spread tightened 1 bp to +166 vs. +167.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $23.8b on Tuesday versus $16.7b on Monday and $22.1b the previous Tuesday.
  • The 10-DMA stands at $19.8b.

 

Global Market Recap

 

  • U.S. Treasuries – registered its 5th losing session in a row.
  • Overseas Bonds – JGB’s & Europe mixed & little changed except for Greece (weak).
  • Stocks – U.S. stocks traded at all-time highs for the 5th session in a row.
  • Overseas Stocks – Nikkei, Hang Seng & Europe rallied while China was red.
  • Economic – Full calendar was mixed. Data that counted most was negative for USTs.
  • Currencies – USD gave up overnight gains during the NY session.
  • Commodities – Gold & wheat were better. Crude oil small lose (bearish inventory).
  • CDX IG: +0.08 to 62.88
  • CDX HY: +0.41 to 317.36
  • CDX EM: +8.48 to 218.63

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
2/13-2/17
vs. Current
WTD – $22.25b
February 2017
Forecasts
vs. Current
MTD – $49.225b
Low-End Avg. $20.71b 107.44% $90.65b 54.30%
Midpoint Avg. $21.33b 104.31% $91.96b 53.53%
High-End Avg. $21.96b 101.32% $93.26b 52.78%
The Low $15b 148.33% $85b 57.91%
The High $26b 85.58% $120b 41.02%

 

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

Have a great evening!

Ron Quigley

 

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 Tuesday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS

 

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
Consumers Energy Co. A1/A+ 3.95% 7/15/2047 350 +110a +90a (+/-2.5) +87.5 +87.5 BAML/CITI/GS/SCOT/WFS
Mitsubishi UFJ Finc’l. Grp. Inc. A1/A FRN 2/22/2022 500 3mL+equiv 3mL +equiv 3mL+92 3mL +92 MUFG/MS
Mitsubishi UFJ Finc’l. Grp. Inc. A1/A 2.998% 2/22/2022 1,000 REV. GUID: +120a
+120-125
+100-105 +100 +100 MUFG/MS
Mitsubishi UFJ Finc’l. Grp. Inc. A1/A 3.677% 2/22/2027 1,000 REV. GUID: +135a
+135-140
+120a (+/-2) +118 +118 MUFG/MS
Philip Morris Int’l. Inc. A2/A 1.625% 2/21/2019 700 +70a +55a (+/-5) +50 +50 CITI/CS/DB (a) BNPP/ING (p)
Philip Morris Int’l. Inc. A2/A FRN 2/21/2020 300 3mL +57a 3mL +equiv 3mL+42 3mL+42 CITI/CS/DB (a) BNPP/ING (p)
Philip Morris Int’l. Inc. A2/A 2.00% 2/21/2020 1,000 +80a +70a (+/-5) +65 +65 CITI/CS/DB (a) BNPP/ING (p)
Philip Morris Int’l. Inc. A2/A 2.625% 2/18/2022 500 +90a +80a (+/-5) +75 +75 CITI/CS/DB (a) BNPP/ING (p)
Snap-On Incorporated A2/A 3.25% 3/01/2027 300 +110a +85a (+/-5) +75 +75 CITI/JPM

 

Indexes and New Issue Volume
*Denotes new tight or new record high.

 

Index Open Current Change  
IG27 *62.80 62.979 0.179
HV27 134.645 132.445 <2.20>
VIX 10.74 11.94 1.20  
S&P 2,337 *2,349 12
DOW 20,504 *20,611 107  
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $5.65 bn DAY: $5.65 bn
WTD: $22.25 bn WTD: $24.25 bn
MTD: $49.225 bn MTD: $61.475 bn
YTD: $221.608 bn YTD: $288.758 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 (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…)

Corporate Bond New Issuance Elasticity: Get It While Its Hot
January 2017      Debt Market Commentary   

Quigley’s Corner 01.06.17 Weekend Edition: Investment Grade Corpoate Bond New Issuance & Spread Elasticity: Get It While It’s Hot

 

Investment Grade New Issue Re-Cap 

My Thoughts re: Next Week’s Issuance

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for January 

The Best and the Brightest” – Investment Grade New Issuance Forecasts 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

Lipper Report/Fund Flows – Week ending January 4th     

IG Credit Spreads by Rating / Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 

It was a no-print Friday today and a well-deserved one at that considering yesterday was the 4th busiest ever in our dollar IG DCM. We priced $53.233b in new IG Corporate-only product this week in just three days and $65.233b including SSA issuance!  What a heck of a start to the New Year!  This morning’s NFP number was another very strong one posting a 156k payroll increase versus 175k estimates or 17% better than expected.  You know what that means…….with labor shortages expected throughout 2017, wages will increase and when wages increase people spend more money and when people spend more money the Fed is more likely to raise rates!  But let’s not get ahead of ourselves.  We have a big January 20th inauguration ahead of us that should make for great TV before Trump & Co. institute rapid change with a Republican controlled Beltway. But before that our U.S. six-pack big FIGs release earnings beginning on January 13th thru the 18th which leaves next week open prior to that deluge.  In speaking to the “Best and the Brightest” in the world of syndicate this morning it’s looking like we drop off a lot from this week but then again $30b, $35b, $40b speaks volumes about just how incredible this week was.  Allow me to opine therein and then let’s re-cap things first before I invite you all to join me as we visit with each of the top 23 syndicate desks in our IG dollar DCM to hear their thoughts, numbers and ranges for next week.

 

My Thoughts re: Next Week’s Issuance

Tuesday’s deals were tighter, and Wednesday’s deals were tighter BUT some widened while yesterday’s deals were 48% wider? What’s it mean? It means “get it while it’s hot,” and the hotter it gets, the more they compress spreads and the more they compress spreads the more likely they are to leak out. So, with the U.S. six-pack banks set to release earnings beginning on January 13th thru the 18th, we have a bit before that money center bank deluge happens. In the interim, next week will seem like a drop off in issuance but why wouldn’t it? We priced the 4th busiest day in history for both IG Corporate AND for IG Corporates and SSA yesterday ($53.233b and $65.233b respectively). By those standards any other week will pale in comparison. However, I believe things hold in and we get $40bn-plus of all-in Corp + SSA issuance next week. Call IG Corporates $35b.

 

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 67 deals that printed, 38 tightened versus NIP for a 56.50% improvement rate while 16 widened (24.00%) and 13 were flat (19.50%).
  • For the week ended January 4th, Lipper U.S. Fund Flows reported an inflow of $2.186b into Corporate Investment Grade Funds (2016 YTD net inflow of $2.186b) and a net inflow of $734.107 into High Yield Funds (2016 YTD net inflow of $734.107b).
  • The average spread compression from IPTs thru the launch/final pricing of today’s XX IG Corporate-only new issues was XX.XX bps.
  • BAML’s IG Master Index widened 1 bp to +129 vs. +128.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS widened 1 bp to +122 vs. +121.  The “LUACOAS” wide since 2012 is +215. The tight is +122.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +167 vs. +166.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $22b on Thursday (7th highest day since 2006) versus $22.4b on Wednesday (6th highest volume day) and $4.1b the previous Thursday.
  • The 10-DMA stands at $9.6b.

 

Syndicate IG Corporate-only Volume Estimates for January 

 

IG Corporate New Issuance January 2017
Forecasts
vs. Current
MTD – $53.233b
Low-End Avg. $107.87b 49.35%
Midpoint Avg. $108.41b 49.10%
High-End Avg. $108.96b 48.86%
The Low $80b 66.54%
The High $145b 36.71%

 

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.  22 of those participants are among 2016’s top 24 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  In fact, all of today’s 23 participants finished in the top 25 of last year’s final IG Corporate Bloomberg league table.  The 2016 League table can be found on your terminals at “LEAG” + [GO] after which you select #201 (US Investment Grade Corporates).  The participating desks represent 81.59% 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 !!   

To best frame our weekly poll i.e.  projected new issue activity, we posed the following to our  Best & Brightest”respondents:

This week’s $53.233b of IG Corporate only new issue volume ranks as the 4th largest of all-time.

  • This week’s $65.233b of all-in (IG Corporate and SSA) issuance also ranks as the 4th highest of all-time. 
  • This week’s IG Corporate only volume total ($53.233b) represents just over 49% of the syndicate midpoint average forecast for all of January ($108.41) after only 3 sessions!  

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

o   NICS:  2.25 bps

o   Oversubscription Rates: 2.45x

o   Tenors:  6.52 years

o   Tranche Sizes: $859mm

o   Spread Compression from IPTs to the Launch: <15.27> bps


Here’s the performance data comparing this week’s averages versus those of the week ending December 15th:

 

  • NICs widened 1.75 bps to 2.25 bps vs. <0.50> bps..
  • Over subscription or bid-to-cover rates increased marginally by 0.04x to 2.45x vs. 2.41x. 
  • Average tenors shortened dramatically by 4.15 years to 6.52 years vs. 10.67 years.
  • Tranche sizes increased noticeably by $151mm to $859mm vs. $708mm.
  • Spread compression from IPTs to the launch/final pricing of this week’s 62 IG Corporate new issues widened by <1.90> bps to <15.27> vs. <17.17>.
  • Standard and Poor’s Investment Grade Composite Spreads tightened 2 bps to +167 vs. +169.
  • Week-on-week, BAML’s IG Master Index tightened 1 bp to +129 versus +130 on Thursday, December 15th
  • Spreads across the four IG asset classes tightened by 0.75 bps to 20.00 vs. 22.00 bps on Thursday, December 15th and as measured against their post-Crisis lows. 
  • Looking at the 19 major industry sectors, spreads tightened 1.57 bps to 26.32 vs. 27.89 on Thursday, December 15th, also against their post-Crisis lows.

 

……and now for the first time of 2017, I’d like to know your thoughts and your numbers for next week’s IG Corporate new issue volume. You all know that I greatly appreciate your participation week in and week out.
Thanks very much, Ron!

 

The “Best and the Brightest” in Their Own Words

 

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

Record Year for Primary Debt Capital Markets; Mischler Comments
December 2016      Debt Market Commentary   

Quigley’s Corner 12.15.16–2016 Sets Record Year for Primary Debt Capital Markets, What’s In Store for 2017

 

End-of-Year- Thoughts –A Look to 2017

Investment Grade Corporate Debt New Issue Re-Cap 

Global Market Recap

IG Primary & Secondary Market Talking Points

The Best and the Brightest” –  Syndicate Forecasts and Sound Bites 

A Look at How the Voting Brackets Broke-Out for Next Week and January 2017

“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

New Issues Priced

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

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending December 14th     

IG Credit Spreads by Rating & Industry

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

New Issue Pipeline

M&A Pipeline

 

 End of year Note:  I will be out traveling on business tomorrow Friday, December 16th.  Today’s “QC” issue will represent the last “Quigley’s Corner” of 2016. I will finally be able to enjoy uninterrupted time with my wife, daughter and our dog at our home in Vermont.  Fireplaces, fresh air, long walks, and time with other extended family. I am so looking forward to unplugging, unwinding and RELAXING! A bit of meaningful après–ski will certainly be on the agenda as well. HOWEVER, “if” there is anything brewing or we’re in a deal, I am right back in action again.  You all know that especially accounts from my previous summer island vacations where I’ve pulled all-nighters to place orders etcetera.

I would like to take this time to thank all of my “QC” readership. To all the issuers who take the time to let me know what fans you are of my editorials, D&I pieces, deal drill downs and data downloads, those comments mean a lot, they are appreciated and serve as great motivation.  To all my accounts that I cover (I’m at about 107 presently), I do appreciate your comments and feedback and am elated it helps you in your daily routines.  You are all the best. I’d especially like to thank the crew fondly referred to here in the “QC” as the “The Best and the Brightest” – namely all the syndicate desks out there who I deal with on deal day. Thanks for your time in responding to my weekly survey and for the very thoughtful sound bites that accompany and compliment your numbers. Thanks for working with me on allocations and for the open exchanges we enjoy.  Thanks also to the DCM teams who I often liaise with across FIGs, Industrials and of course our domestic Utility sector.  You all know who you are.

Always know that the guy-in-the-corner is ALWAYS in YOUR corner.  It’s been another great year but after 24 years in this business I know all too well that January simply means we all reset “back to zero.” I try every day to do the best and bring you the best that I can here in the “QC.”  I hope it continues to grow its readership.  It’s free and it takes one heck of a lot of time out of my day that includes placing new issues as Head of Primary Sales, running all of Mischler’s IG Corporate new issues and also banking the Utility sector and includes co-coverage on most all of the staple big FIGs among others.  If it helps to shed light on what else I do I suppose I should add in strategic relationships, dealing with the finest press contacts in our financial services industry each and every day, helping to brand this firm and getting us and our names out in the media in the right way and in a meaningful way.  Then there’s always the equity secondary trade that comes along or municipal new issue orders and treasury trades as well a fair amount of structured products placements, bulky agencies and preferreds.  It’s a lot.  But I still enjoy it.  And as long as I do the “QC” will be stopping in for its daily visit with you.

As we are a diversity and inclusion firm so too is my readership.  So I’d like to send out a heartfelt “Happy Holiday” to each one of you and your families.  For those of you who celebrate Christmas as I do, then I wish you and yours a very Merry Christmas and a safe, healthy, happy and prosperous 2017. 

mischler-veteran-owned-holiday-2016-greeting
Ron, a.k.a. the guy-in-the-corner

 

Investment Grade New Issue Re-Cap 

 

Well, it looks as though officially ended as of today.  Of the 23 major underwriting houses 14 forecasting “ZERO” issuance in each of the next two weeks.  That about sums it up.  Of those who did chime in with a “0-5” or $300mm drive by etc., all admitted “we don’t have anything.” It’s over, done or as one large shop said, “ZILCH!”  My advice?  Rest up. Spend time with your families.  Enjoy the holidays however you celebrate it.  Live, love and laugh because it starts all over again in 19 days on Tuesday, January 3rd.  In between that time fall 3 weekends (6 days) as well as Christmas and New Year’s Day.  My wish is that USC topples PSU in the Granddaddy of them all on Monday January 2 at 5pm ET on ESPN.  That right there will be the most entertaining of all the Bowl games.  Fight On Trojans!

 

Global Market Recap

 

  • S. Treasuries – Phase 2 of the UST sell off is under way. Bunds & Gilts traded poorly.
  • 3mth Libor – Set at the highest since May 2009 (0.99317).
  • Stocks – U.S. & Europe closed higher. Nikkei little changed. China mixed & HS hit hard.
  • Economic – The U.S. data was very good today.
  • Overseas Economic – Solid PMI data in Europe and retail sales in the U.K.
  • Currencies – Big rally for the USD. DXY Index at high since 2002
  • Commodities – Gold & silver (-7.3%) were hit hard. Crude oil had a small loss
  • CDX IG: -0.67 to 68.76
  • CDX HY: -1.56 to 362.52
  • CDX EM: +0.40 to 250.39
  • Swaps: Very bad day (below)

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • For the week ended December 14th, Lipper U.S. Fund Flows reported an outflow of $80.9m from Corporate Investment Grade Funds (2016 YTD net inflow of $43.710b) and a net inflow of $3.75b into High Yield Funds (2016 YTD net inflow of $10.723b).
  • Taking a look at the secondary trading performance of this week’s IG and SSA new issues, of the 6 deals that printed, 3 tightened versus NIP for a 00% improvement rate and 3 were flat (50.00%).
  • The average spread compression from IPTs thru the launch/final pricing of today’s 2 IG Corporate-only new issues was <20.00> bps.
  • BAML’s IG Master Index tightened 1 bp to +130 vs. +131.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to 1.24 vs. 1.25.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Standard & Poor’s Investment Grade Composite Spread tightened 2 bps to +169 vs. +171.  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 Wednesday versus $19.3b on Tuesday and $21.4b the previous Wednesday.

 

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

 

IG Corporate New Issuance This Week
12/12-12/16
vs. Current
WTD – $4.25b
December 2016
Forecasts
vs. Current
MTD – $40.455b
Low-End Avg. $4.74b 89.66% $40.87b 98.98%
Midpoint Avg. $6.00b 70.83% $41.52b 97.43%
High-End Avg. $7.26b 58.54% $42.17b 95.93%
The Low $0.1b/”0” 4,250.00% $30b 134.85%
The High $10b 42.50% $60b 67.42%

 

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

 

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.  22 of those participants are among 2016’s top 24 ranked syndicate desks according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  In fact, all of today’s 23 participants finished in the top 25 of last year’s final IG Corporate Bloomberg league table.  The 2016 League table can be found on your terminals at “LEAG” + [GO] after which you select #201 (US Investment Grade Corporates).  The participating desks represent 81.59% 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 was prefaced by the following:

“Happy Friday on Thursday! As I will be out traveling on business tomorrow, I am conducting my usual Friday survey today!  We’re nearly done for the year.  Congrats on a record setting 2016!  

 

  • Entering today’s session and given the pause thanks to this week’s two-day FOMC meeting, we only featured 3 issuers and 6 tranches.
  • The IG Corporate weekly total so far amounts to only 70.83% of this week’s syndicate midpoint average forecast or $4.25b vs. $6.00b. 
  • As for the month of December we’re currently at over 97.43% of the syndicate projection or $40.455b vs. $41.52b. 
  • We did, however set a new IG Corporate annual volume record whether we see issuance thru year end or not. We are currently at $1,285.217 trillion vs. last year’s previous record of $1,268.44 trillion, a 1.32% improvement.
  • As for all-in IG new issuance (Corporates plus SSA) we eclipsed last year’s record issuing $1,625.151 trillion vs. last year’s $1,512.83 trillion or 7.42% more.

 

Could some opportunistic issuers tap from today thru year end? Of course! Could some smaller issuers get their deals done in the next couple of business days in advance of the holidays to avoid crowding in what’s gearing up to be a monumental January?  Certainly!  But for all intents and purposes after today we’re about thru for the year folks.  


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

  • NICS:  <0.50> bps
  • Oversubscription Rates: 2.41x
  • Tenors:  10.67 years
  • Tranche Sizes: $708mm
  • Spread Compression from IPTs to the Launch: <17.17> bps

Versus last Friday’s key primary market driver averages we had some dramatic swings thanks to the fact that we only had 6 tranches price this week that priced on either Monday or today, Friday.

Here’s the performance data:

  • NICs tightened 4.76 bps to <0.50> bps vs. 4.26 bps..
  • Over subscription or bid-to-cover rates decreased 1.27x to 2.41x vs. 3.68x last week. 
  • Average tenors extended out by 1.46 years to 10.67 years vs. 9.21 years.
  • Tranche sizes decreased by $52mm to $708mm vs. $760mm last week.
  • Spread compression from IPTs to the launch/final pricing of this week’s IG Corporate new issues widened 5.07 bps to <17.17> bps vs. <22.24> bps last week.
  • Standard and Poor’s Investment Grade Composite Spreads tightened 5 bps to +169 vs. +174.
  • Week-on-week, BAML’s IG Master Index tightened 3 bps to +130 vs.+133 last Friday. 
  • Spreads across the four IG asset classes tightened by 2.50 bps to 22.00 bps vs. 24.50 bps as measured against their post-Crisis lows. 
  • Looking at the 19 major industry sectors, spreads tightened 2.74 bps to 27.89 vs. 30.63 bps also against their post-Crisis lows.

 

……and now for the final time of 2016, I’d like to know your thoughts and numbers for the last two weeks and for January’s IG Corporate new issue volume.
Wishing you and yours a joyous holiday season.  For those of you who celebrate Christmas, like I do, I’d like to wish you and your families a very Merry Christmas and a safe, healthy, happy and prosperous New Year. -Ron”

 

The “Best and the Brightest” in Their Own Words

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

*Replies from canvassed respondents available exclusively to QC Distribution List recipients.

 

Syndicate IG Corporate-only Volume Estimates for Next Week and January 2017

 

IG Corporate New Issuance Next Week
12/19-12/30
January 2016
Low-End Avg. $45mm $107.87b
Midpoint Avg. $502mm $108.41b
High-End Avg. $959mm $108.96b
The Low $0.00 $80b
The High $5b $145b

A Look at How the Voting Brackets Broke-Out for Next Week and January 2017

 

Next Week
12/19-12/23
January 2017
14: “0.00” 1: 80-90b
1: 300mm 1: 90-100b
1: 500mm 2: 95b
1: 250mm-1.25b 8: 100b
2: 0-2b 3: 110b
2: 0-3b 3: 115b
2: 0-5b 2: 120b
  1: 126b
  1: 135-145
  1: 145b

 

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

 

  • Across the past ten years, all-in dollar-denominated IG Corporate plus SSA January new issuance averaged $135.00b.
  • Over the past five years, all-in IG January new issuance averaged $143.38b.
  • Over the past three years, all-in IG January issuance has averaged $145.46b.
  • The past three January’s saw IG Corporate only issuance average $108.90b.
  • January SSA issuance has averaged $36.56b across the last three years.

 

January
(Year)
All-in IG Issuance (bn) IG Corps
only (bn)
SSA
only (bn)
2016 169.124 126.984 42.14
2015 115.12 96.35 18.77
2014 152.14 103.36 48.78
2013 153.06 119.06 34.00
2012 127.48 81.14 46.34
2011 149.12 111.89 37.23
2010 110.69 74.80 35.89
2009 155.45 69.23 86.22
2008 144.35 75.74 68.61
2007 73.44 51.14 22.30

*Note: includes TARP/TALF & FDIC insured issuance

  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.

Happy Holidays to All..

Ron Quigley, Managing Director and 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 Corporates thru today’s Thursday session followed by this week’s and the prior three week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
12/12
TUES.
12/13
WED.
12/14
TH.
12/15
FR
12/16
THIS WEEK’S AVERAGES AVERAGES
WEEK 12/05
AVERAGES
WEEK 11/28
AVERAGES
WEEK 11/21
New Issue Concessions <1.83> bps N/A N/A 1.50 bps N/A <0.50> bps 4.26 bps 3.53 bps 4.5 bps
Oversubscription Rates 2.15x N/A N/A 2.94x N/A 2.41x 3.68x 3.38x 2.99x
Tenors 6 yrs N/A N/A 20 yrs N/A 10.67 yrs 9.21 yrs 10.84 yrs 12.14 yrs
Tranche Sizes $688mm N/A N/A $750mm N/A $708mm $760mm $711mm $929mm
Avg. Spd. Compression
IPTs to Launch
<15.75> bps N/A N/A <20.00> bps N/A <17.17> bps <22.24> bps <17.60> bps <16.07> 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
UnitedHealth Group Inc. A3/A+ 3.45% 1/15/2027 750 +105a +90a (+/-5) +85 +85 BAML/CITI/JPM
UnitedHealth Group Inc. A3/A+ 4.20% 1/15/2047 750 +125a +110a (+/-5) +105 +105 BAML/CITI/JPM

           

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 6 deals that printed, 3 tightened versus NIP for a 50.00% improvement rate and 3 were flat (50.00%).

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
UnitedHealth Group Inc. A3/A+ 3.45% 1/15/2027 750 +105a +90a (+/-5) +85 +85 85/83
UnitedHealth Group Inc. A3/A+ 4.20% 1/15/2047 750 +125a +110a (+/-5) +105 +105 104/
Enbridge Inc. Ba1/BBB- 6.00% 60NC10 750 6.25%a 6.00% the # 6.00% $100.00 $100.00/
MetLife Global Funding Aa3/AA- FRN 12/19/2018 500 3mL+equiv 3mL+equiv 3mL+43 3mL+43 3mL+43/41
MetLife Global Funding Aa3/AA- 1.75% 12/19/2018 500 +75a +65 the # +65 +65 64/62
MetLife Global Funding Aa3/AA- 3.45% 12/18/2026 1,000 +115a +100a (+/-3) +97 +97 94/92

 

Indexes and New Issue Volume

 

Index Open Current Change
LUACOAS 1.24 1.24 0
IG27 69.43 68.798 <0.632>
HV27 139.86 141.705 1.845
VIX 13.19 12.79 <0.40>
S&P 2,253 2,262 9
DOW 19,792 19,852 60
 

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

DAY: $1.50 bn DAY: $1.50 bn
WTD: $4.25 bn WTD: $4.25 bn
MTD: $40.455 bn MTD: $46.405 bn
YTD: $1,285.217 bn YTD: $1,625.151 bn

 

Lipper Report/Fund Flows – Week ending December 14th     

     

  • For the week ended December 14th, Lipper U.S. Fund Flows reported an outflow of $80.9m from Corporate Investment Grade Funds (2016 YTD net inflow of $43.710b) and a net inflow of $3.75b into High Yield Funds (2016 YTD net inflow of $10.723b).

 

  • Over the same period, Lipper reported a net inflow of $1.504b into Loan Participation Funds (2016 YTD net inflow of $3.826b).

 

  • Emerging Market debt funds reported a net outflow of $776.74m (2016 YTD inflow of $3.961b).

 

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 22.00 bps wider versus their post-Crisis lows!

 

ASSET CLASS 12/14 12/13 12/12 12/09 12/08 12/07 12/06 12/05 12/02 12/01 1-Day Change 10-Day Trend PC
low
IG Avg. 130 131 132 133 133 134 134 135 135 135 <1> <5> 106
“AAA” 73 74 75 75 75 75 75 75 75 75 <1> <2> 50
“AA” 81 81 82 81 82 82 82 82 83 83 0 <2> 63
“A” 104 105 106 106 106 106 107 107 107 107 <1> <3> 81
“BBB” 166 168 170 170 171 172 172 173 174 174 <2> <8> 142
IG vs. HY 282 289 293 295 305 308 316 323 329 327 <7> <45> 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 27.89 bps wider versus their post-Crisis lows!

                                    

INDUSTRY 12/14 12/13 12/12 12/09 12/08 12/07 12/06 12/05 12/02 12/01 1-Day Change 10-Day Trend PC
low
Automotive 121 121 121 121 121 121 121 121 122 122 0 <1> 67
Banking 122 122 124 123 124 124 125 125 126 125 0 <3> 98
Basic Industry 166 169 170 170 172 173 174 175 176 175 <3> <9> 143
Cap Goods 98 99 99 99 99 100 100 100 101 101 <1> <3> 84
Cons. Prod. 106 107 108 109 109 109 109 109 110 109 <1> <3> 85
Energy 163 166 168 170 172 173 174 175 177 177 <3> <14> 133
Financials 150 152 153 152 153 154 154 155 155 154 <2> <4> 97
Healthcare 116 117 117 117 117 117 117 118 118 118 <1> <2> 83
Industrials 132 133 134 135 135 136 136 137 137 137 <1> <5> 109
Insurance 142 144 145 145 146 146 146 146 147 146 <2> <4> 120
Leisure 134 134 135 135 135 134 134 135 135 135 0 <1> 115
Media 157 158 159 157 158 158 159 159 160 159 <1> <2> 113
Real Estate 142 143 144 143 143 143 143 144 144 144 <1> <2> 112
Retail 112 112 114 114 115 115 116 116 116 116 0 <4> 92
Services 125 125 127 127 127 127 128 128 128 128 0 <3> 120
Technology 106 107 108 108 109 109 110 110 110 110 <1> <4> 76
Telecom 160 161 163 163 163 164 165 165 166 165 <1> <5> 122
Transportation 129 130 131 131 132 133 135 135 135 135 <1> <6> 109
Utility 131 132 133 133 134 135 135 135 136 135 <1> <4> 104

 

Economic Data Releases

 

TODAY’S ECONOMIC DATA PERIOD SURVEYED ESTIMATES ACTUAL NUMBER PRIOR NUMBER PRIOR REVISED
Current Account Balance Q3 <$111.6b> <$113.0b> <$119.9b> <$118.3b>
Empire Manufacturing December 4.0 9.0 1.5 —-
CPI MoM November 0.2% 0.2% 0.4% —-
CPI Ex Food and Energy MoM November 0.2% 0.2% 0.1% —-
CPI YoY November 1.7% 1.7% 1.6% —-
CPI Ex Food and Energy YoY November 2.2% 2.1% 2.1% —-
CPI Core Index SA November 249.400 249.357 248.981 —-
CPI Index NSA November 241.413 241.353 241.729 —-
Real Average Weekly Earnings YoY November —- 0.5% 0.9% —-
Initial Jobless Claims Dec. 10 255k 254k 258k —-
Continuing Claims Dec. 3 2003k 2018k 2005k 2007k
Philadelphia Fed Business Outlook December 9.1 21.5 7.6 —-
Bloomberg Consumer Comfort Dec. 11 —- 45.5 45.1 —-
Markit US Manufacturing PMI December 54.5 54.2 54.1 —-
NAHB Housing Market Index December 63 70 63 —-
Total Net TIC Flows October —- $18.8b <$152.9b> <$154.4b>
Net Long-term TIC Flows October —- $9.4b <$26.2b> —-

 

Rates Trading Lab

 

One day this market will bounce, but today was not the day. The front end seems to be finding some grounding, and that is a start. However, the belly of the curve trades poorly. We are still in the midst of the market equivalent of trying to turn a supertanker around in a bath tub. It’s not pretty.

-Jim Levenson

 

UST Resistance/Support Table

 

CT3 CT5 CT7 CT10 CT30
RESISTANCE LEVEL 99-14+ 98-28+ 98-25 95-18+ 96-18
RESISTANCE LEVEL 99-13 98-23 98-18 95-08+ 95-29+
RESISTANCE LEVEL 99-12 98-176 98-14 95-02+ 95-08
         
SUPPORT LEVEL 99-07+ 98-07 97-28+ 94-11+ 93-16
SUPPORT LEVEL 99-05+ 98-01 97-21 94-01+ 92-25+
SUPPORT LEVEL 99-036 97-21+ 97-04+ 93-12 91-190

 

Tomorrow’s Calendar

 

  • China Data: Nothing Scheduled
  • Japan Data: Nothing Scheduled
  • Australia: Nothing Scheduled
  • EU Data: EC-Trade Balance, CPI U.K.-CBI Trends
  • S. Data: Housing Starts, Building Permits
  • Supply: U.K. bills
  • Events: Nothing Scheduled
  • Speeches: Weidmann, Constancio

(more…)

PEMEX Prints USD 5.5bil 3-Part; Eye On Investment Grade Credit Spreads
December 2016      Debt Market Commentary   

Quigley’s Corner 12.06.16 – PEMEX Prints USD 5.5b 3-Part for Pole Position in Day’s Debt Issuance


Investment Grade New Issue Re-Cap 

Global Market Recap

IG Primary & Secondary Market Talking Points

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

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 November 30th    

Investment Grade Credit Spreads by Rating

Investment Grade Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline – $303.84 Billion in Cumulative Enterprise Value!

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

3 IG Corporate issuers priced 7 tranches between them totaling $7.65b today bringing the WTD total to $13.975b or over 78% of this week’s syndicate midpoint average forecast calling for $17.87b.  MTD we’ve issued $28.905b or nearly 70%% of the $41.52b estimate.  PEMEX printed a $5.5b three-part Senior Notes transaction that accounted for 72% of today’s IG primary market volume. SSA issuance was once again absent for the third consecutive session.

 

Global Market Recap

 

  • S. Treasuries – Closed mixed for the 2nd day but today the curve was steeper.
  • Overseas Bonds – JGB’s mostly red. Bunds & Gilts lost. Strong Peripheral bid.
  • 3mth Libor – Set at its highest yield (0.95083%) since May 2009.
  • Stocks – Small gains heading into close led by the NASDAQ.
  • Overseas Stocks – Big bank rally in Europe. Asia more green than red.
  • Economic – Trade deficit cuts into GDP. Factory orders & economic optimism strong.
  • Overseas Economic – EU GDP inched higher & strong German factory orders.
  • Currencies – Bounce back day for the USD. USD outperformed all of the Big 5.
  • Commodities – Down day for commodities including crude oil.
  • CDX IG: -1.78 to 70.11
  • CDX HY: -6.60 to 375.61
  • CDX EM: -8.58 to 256.24

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • CBL & Associates LP upsized today’s 10-year Senior Notes new issue to $400mm from $300mm at the launch.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 7 IG Corporate-only new issues, including today’s KeyCorp Pfd., was <29.32> bps.
  • BAML’s IG Master Index was unchanged at +135.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 1 bp to +128 vs. +129.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Standard & Poor’s Investment Grade Composite Spread tightened 1 bp to +175 vs. +176.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $14.0b on Monday versus $25.0b on Friday and $16.9b the previous Monday.

 

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

 

IG Corporate New Issuance This Week
12/05-12/09
vs. Current
WTD – $13.975b
December 2016
Forecasts
vs. Current
MTD – $28.905b
Low-End Avg. $16.78b 83.28% $40.87b 70.72%
Midpoint Avg. $17.87b 78.20% $41.52b 69.62%
High-End Avg. $18.96b 73.71% $42.17b 68.54%
The Low $10b 139.75% $30b 96.35%
The High $25b 55.90% $60b 48.17%

 

 

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 Monday’s session followed by the averages over the prior four weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
12/05
AVERAGES
WEEK 11/28
AVERAGES
WEEK 11/21
AVERAGES
WEEK 11/14
AVERAGES
WEEK 11/07
New Issue Concessions <1.05> bps 3.53 bps 4.5 bps 3.62 bps <3.60> bps
Oversubscription Rates 4.16x 3.38x 2.99x 2.78x 4.26x
Tenors 15.09 yrs 10.84 yrs 12.14 yrs 11.28 yrs 13.31 yrs
Tranche Sizes $575mm $711mm $929mm $1,039mm $692mm
Avg. Spd. Compression
IPTs to Launch
<19.43> bps <17.60> bps <16.07> bps <17.69> bps <22.96> 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
CBL & Associates Baa3/BBB- 5.95% 12/15/2026 400 +375a N/A +375 +375 JPM/JEFF/USB/WFS
PEMEX Baa3/BBB+ FRN 3/11/2022 1,000 3mL+equiv 3mL+equiv 3mL+365   BAML/CITI/JPM/MIZ/MS
PEMEX Baa3/BBB+ 5.375% 3/13/2022 1,500 6.00%-low 6.00%
6.125%a
5.625%a (+/-12.5) 5.50% +366.4 BAML/CITI/JPM/MIZ/MS
PEMEX Baa3/BBB+ 6.50% 3/13/2027 3,000 7.00%-low 7.00%
7.125%a
6.75%a (+/-12.5) 6.625% +423.3 BAML/CITI/JPM/MIZ/MS
PNC Bank NA Aa2/A+ FRN X/XX/2018 400 3mL+equiv 3mL+equiv 3mL+40 3mL=40 BARC/GS/MS/PNC
PNC Bank NA Aa2/A+ 1.70% X/XX/2018 600 +low 70s/+72.5a +65a (+/-2) +63 +63 BARC/GS/MS/PNC
PNC Bank NA Aa2/A+ 2.55% X/XX/2021 750 +mid/high 80s
+86.25a
+77a (+/-2) +75 +75 BARC/GS/MS/PNC

           

Indexes and New Issue Volume

 

Index Open Current Change  
LUACOAS 1.29 1.28 <0.01>
IG27 71.894 69.54 <2.354>
HV27 143.865 143.40 <0.465>
VIX 12.14 11.79 <0.35>  
S&P 2,204 2,212 8
DOW 19,216 19,251 35  
 

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

DAY: $7.65 bn DAY: $7.65 bn
WTD: $13.975 bn WTD: $13.975 bn
MTD: $28.905 bn MTD: $34.655 bn
YTD: $1,273.667 bn YTD: $1,613.401 bn

 

Lipper Report/Fund Flows – Week ending November 30th    

     

  • For the week ended November 30th, Lipper U.S. Fund Flows reported an outflow of $1.302b from Corporate Investment Grade Funds (2016 YTD net inflow of $41.464b) and a net inflow of $341.7m into High Yield Funds (2016 YTD net inflow of $4.939b).
  • Over the same period, Lipper reported a net inflow of $339.2b into Loan Participation Funds (2016 YTD net inflow of $561.5m).
  • Emerging Market debt funds reported a net outflow of $188.9m (2016 YTD inflow of $5.743b).

 

Investment Grade 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 25.25 bps wider versus their post-Crisis lows!

 

ASSET CLASS 12/05 12/02 12/01 11/30 11/29 11/28 11/25 11/24 11/23 11/22 1-Day Change 10-Day Trend PC
low
IG Avg. 135 135 135 136 136 136 136 136 136 137 0 <2> 106
“AAA” 75 75 75 75 75 75 75 75 75 77 0 <2> 50
“AA” 82 83 83 84 84 83 84 84 84 84 <1> <2> 63
“A” 107 107 107 108 108 108 108 108 108 108 0 <1> 81
“BBB” 173 174 174 175 177 177 177 177 177 178 <1> <5> 142
IG vs. HY 323 329 327 331 333 330 328 330 330 333 <6> <10> 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 31.89 bps wider versus their post-Crisis lows!

                                    

INDUSTRY 12/05 12/02 12/01 11/30 11/29 11/28 11/25 11/24 11/23 11/22 1-Day Change 10-Day Trend PC
low
Automotive 121 122 122 123 123 123 124 124 124 123 <1> <2> 67
Banking 125 126 125 125 126 126 126 126 126 126 <1> <1> 98
Basic Industry 175 176 175 177 175 175 175 175 175 176 <1> <1> 143
Cap Goods 100 101 101 102 101 101 102 101 101 102 <1> <2> 84
Cons. Prod. 109 110 109 110 110 110 111 111 111 111 <1> <2> 85
Energy 175 177 177 180 181 180 181 180 180 181 <2> <6> 133
Financials 155 155 154 155 157 157 157 157 157 157 0 <2> 97
Healthcare 118 118 118 119 118 118 119 119 119 119 0 <1> 83
Industrials 137 137 137 139 139 139 139 140 140 140 0 <3> 109
Insurance 146 147 146 147 147 147 147 147 147 147 <1> <1> 120
Leisure 135 135 135 135 135 134 135 135 135 135 0 0 115
Media 159 160 159 161 161 160 161 161 161 161 <1> <2> 113
Real Estate 144 144 144 144 142 142 143 143 143 143 0 +1 112
Retail 116 116 116 117 117 117 118 119 119 119 0 <3> 92
Services 128 128 128 128 127 127 128 128 128 128 0 0 120
Technology 110 110 110 112 112 113 113 113 113 114 0 <4> 76
Telecom 165 166 165 166 167 167 168 169 169 169 <1> <4> 122
Transportation 135 135 135 136 135 135 136 135 135 135 0 0 109
Utility 135 136 135 135 135 135 136 135 135 136 <1> <1> 104

 

New Issue Pipeline (more…)

Veterans Firm Mischler Applies Military Focus In Munis-Bond Buyer
November 2016      Company News, Muni Market, News and Information   

Bond Buyer Nov 10 2016 coverage of Mischler Financial Group re-published in parts with permission

bond_buyer_mischler_veterans-day-muni-debt-brokerdealer

chip-barnett-mischler-bondbuyer

Chip Barnett, BondBuyer

Duty. Honor. Country.

Gen. Douglas MacArthur’s words aren’t just a Veterans Day slogan for Mischler Financial Group.

MFG is America’s oldest institutional brokerage and investment bank certified as a Service-Disabled Veterans Business Enterprise (SDVOBE). The minority broker-dealer was founded in 1994 and certified by the State of California in 1995. It is also one of the first FINRA members certified by the US Department of Veterans Affairs, the State of New York and the Commonwealth of Massachusetts. MFG is 100% employee owned and operated and takes a value-added approach to its public sector business.

“We are unequaled in our command of the financial market terrains in which we operate, and unmatched in our sense of duty, discipline, integrity, and honor… in every undertaking. We leave no client behind,” according to the firm’s mission statement.

bond-buyer-mischler-tilghman-chamberlain

Mgn. Dir. Rick Tilghman (l), CEO Dean Chamberlain (r)

MFG’s public finance department includes new issue underwriting and full service secondary market trading of both general obligation and revenue bonds. The firm trades over $14 billion a month in fixed income alone. And it has extensive experience in the public finance underwriting field; the company underwrote its first municipal bond issue in 1999 for the Los Angeles State Building Authority. Today approximately 15% of its underwriting activity is municipal bonds. The firm is also a two-time counterparty to the New York Federal Reserve Bank.

Some of MFG’s recent deals include serving as: co-manager on DASNY’s $1.11 billion of state personal income tax revenue bond sale in October; co-manager on the Regents of the University of California’s $1.05 billion of Medical Center pooled revenue bond deal in August; co-manager on the Los Angeles Department of Water and Power’s $628.62 million sale of water and revenue bonds in April; and as a selling group member on New York City’s $800.06 million general obligation bond deal in August and on NYC’s $800.45 million GO deal in May.

Walter Mischler, MFG’s founder and chairman, and Dean Chamberlain, its chief executive officer, are both graduates of the U.S. Military Academy.

Mischler, West Point Class of 1969, served with distinction in the Vietnam theatre in the infantry during 1971-1972 before he became disabled. He founded the firm in 1994 and today continues his work with institutional investment managers, major corporations, and government agencies in the federal, state and municipal sectors.

Chamberlain, West Point Class of 1985, had his six-year tour of duty, where he held various leadership positions with the 4th Infantry Division, cut short after suffering a disabling injury during a parachute jump. He began his financial services career in 1992 at Donaldson, Lufkin & Jenrette, trading mortgage- and asset-backed securities. Before joining Mischler Financial in 2011, Chamberlain was a member of the board of directors for Nomura Securities International and served as its head of fixed income for the Americas and head of distribution in both North and South America. Previously, he was a senior executive for Bank of America Securities, where he was head of structured products distribution for the Midwest region. Chamberlain said what differentiates MFG from other firms is that “our capital is our own capital. We don’t borrow it from somebody else.” He said the company is reinvesting into the business with its own money, not with somebody else’s.

With headquarters in Stamford, Conn., and Newport Beach, Calif., the firm has offices in eight cities across the U.S. and is staffed by over 55 veterans of the securities industry.

MFG administers corporate share repurchase programs for leading companies, cash management for government entities and corporations, and asset management programs for liquid and alternative investment strategies.

“This firm has been around for over 20 years,” Chamberlain said, “but for 17 of those years did mostly secondary sales and trading in a robust client base covering cities, counties and states in the middle market.”

Over the last six years, he said, the firm has adopted a new business model that says “slow and steady wins the race, build our capital, hire veterans, hire qualified people and add value, add value, add value. And that’s done very well for all of us.”

Richard Tilghman, MFG’s Managing Director of Public Finance, exemplifies the best of that new strategy. He went to Yale University and spent 19 months in Vietnam as a Marine infantry officer.

Tilghman has been in municipal bonds since 1971. He began his career at First Boston Corp. in public finance and worked on its trading floor. He has been in munis ever since, having been employed at such firms as Greenwich Partners, First Albany, Public Resources Advisory Group, Lehman, and Ramirez & Co. He joined Mischler Financial in 2014.

He said the competitive arena was a new area that the firm has become involved in adding that the firm has already participated at the co-manager level on several bond sales.

robert-karr-mischler-financial-capital-marketsRobert Karr joined MFG in 2011, to head the firm’s capital markets group. He previously worked at Bank of America Securities and at Prudential Securities, where he ran structured finance.

Karr said he believes in the idea of a firm that does “the right thing for the customer, where you may not maximize the value [for yourself] on a given trade or deal … but you build a business and a relationship for the long term.”

Since 2011, when MFG significantly expanded its capital markets focus and staffing, the debt capital markets group has done about 750 deals with over $920 billion in issuance from 156 unique issuers. In 2015, the firm was involved in 76 municipal deals for about $32.5 billion and so far in 2016, it has been involved in about 66 deals for about $30.8 billion.

In 2015, the firm had a record breaking year, with all underwriting areas doing about $295 billion of business in 107 issues.

“Our business ethos is we want people to say ‘great firm, great origination, great trading great service, great distribution and oh, by the way, they’re a service disabled veteran firm that gives back.’ That’s what it’s all about for us,” he said.

In its charitable role, MFG will donate a percentage of the entire month of November’s profits to The Bob Woodruff Foundation, The Johnny Mac Soldiers Fund and Buildon.org in observance of Veterans Day 2016.

For Mischler Financial Group, the battle to add value for its clients and provide support for the country while keeping its focus on those who have served in the military, is one precept to which they will be always faithful.

To continue reading coverage from The Bond Buyer, please click here (more…)

Mischler IG Debt Market Comment 10-05-16 : TMCC; ECB; Economic Front
October 2016      Debt Market Commentary   

Quigley’s Corner 10.05.16 Mischler IG Debt Market Comment

 

Investment Grade New Issue Re-Cap

Good News on the U.S. Economic Front This Week

Central Banks

Positive Developments Outside of Economic Data & Central Banks

Global Market Recap

A Look at FNMA Placement Statistics
Toyota Motor Credit Corp. Makes D&I History

IG Primary & Secondary Market Talking Points

Lipper Fund Flows

New Issues Prices

Indexes and New Issue Volume

IG Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 

Well, with tomorrow’s heavy calendar for economic data, it’s one last chance to pick up $6.5b in new issuance to match the syndicate midpoint average forecast for the week. We’re currently at $12.05b vs. $18.54b.  Today saw 5 IG Corporate issuers price 7 tranches between them totaling $3b with two SSA assists for an all-in IG day total of 7 issuers, 9 tranches and $4b. It’s good that I have good old reliable Tony Farren, my rates guru par excellence to rely on when I am out of the office.  Today is one of those days and I’ll tell you all about it in a moment.  First, a look at today’s market moving events reveals that Gallup’s Job Creation Index held steady in September for the fifth month in a row at +33.  That represents the highest score recorded since Gallup began tracking that metric in January 2008.

As Tony wrote today:
Good News on the U.S. Economic Front This Week

 

  • ISM manufacturing PMI moved back over 50 (51.5 from 49.4).
  • ISM non-manufacturing increased 5.7 points to 57.1 after a 4.1 point drop last month.
  • Cap goods non-defense ex-air increased for the 3rd month in a row (Aug +0.9%, July +0.8% & June +0.5%).
  • U.S. Employment Report – ??? (Friday morning).

 

Central Banks

 

  • BOJ – Last Friday the BOJ announced they will cut back on the amount of long end bonds it will be buying in an attempt to steepen the JGB curve.
  • ECB – Yesterday a Bloomberg article stated the ECB was considering tapering QE. Was it a bogus article or a trail-balloon from the ECB? Bonds in Europe have traded poorly this week.
  • Are we seeing a change in the way Central Banks are going to go about their business? If Central Banks are counting on help from the fiscal side I think they are going to be disappointed.

Positive Developments Outside of Economic Data & Central Banks

 

  • Crude oil higher – Crude oil has traded higher after an understanding was reached at last week’s informal OPEC meeting to discuss oil production cuts.
  • U.S. Congress passed a spending bill last week that averts a partial U.S. Government shut down.
  • Deutsche Bank – The sentiment concerning DB has improved substantially since the beginning of last week.
  • The hawkish Fed Speakers are warming up and starting to flex their muscles but they have a large hurdle to get over on Friday…US Employment Report!

 

Global Market Recap

 

  • U.S. Treasuries – had its 4th losing session in a row. Long end in Japan & EU hit.
  • 3mth Libor – Set at the highest yield since May 2009 (0.86794%).
  • Stocks – U.S. stocks with solid gains at 3:15pm.
  • Overseas stocks – Europe mostly down but bank stocks rallied. Asia was higher.
  • Economic – This week U.S. economic data has bolstered the Fed hawks case.
  • Currencies – USD weaker vs. 4 of the Big 5. Yen down for 7th session in a row.
  • Commodities – Good day for commodities as crude oil nearly rallies to 50.
  • CDX IG: -1.23 to 74.47
  • CDX HY: -4.64 to 402.28
  • CDX EM: -3.14 to 234.91

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

-Tony Farren

 

A Look at FNMA Placement Statistics

Thanks in advance to our own Annie “Agency” Bonner for the following information:

 

BY INVESTOR TYPE:

 

  • 40% Fund Mgr
  • 28% Commercial Banks
  • 11% Central Banks
  • 9% Insurance Companies
  • 7% Corporate/Pensions
  • 2% State/Local Govt
  • 2% Other
  • <1% Retail

BY REGION:

 

  • 81% US
  • 11% Asia
  • 6% Europe
  • 1% Other
  • 1% ??

 

Once Upon a Time Four Years Ago or “Where It All Started”

 

Four years ago Zeeshan Naqvi, now with Moody’s Investors Service Inc., and formerly with GECC Treasury/Funding, paid a visit to Mischler to deliver GE’s annual report card of diversity broker dealer performance for 2012.  GECC’s diversity initiative offered the space the most coveted rotation for minority- women- and veteran- investment bank inclusion.  On that November day Mischler was told it finished atop GECC’s diversity broker dealers across their three main criteria:

 

  • Order Book Size
  • Quality of Orders
  • Final Allocations

 

The hour long meeting took place at our offices here at One Stamford Landing in Stamford, Connecticut.  While discussing our middle markets distribution network we suggested that Zeeshan and GECC meet our accounts for a non-deal roadshow.  He thought it was a great idea and soon enough Mischler was asked to conduct the first ever non-deal roadshow by a diversity firm for an issuer that just happened to be the most prolific at the time in our IG dollar DCM.  It resulted in a wonderful luncheon in Manhattan wherein 18 Mischler institutional accounts attended to hear GE’s story. Several took last minute flights on their own coin for the occasion…….that event advanced GE’s brand in the world of diversity in our financial services industry, and has been emulated by other global brands within the financial industry ecosystem…In particular, TMCC….

 

Toyota Motor Credit Corp.  (TMCC) Makes D&I History with Mischler-Sponsored Investor Luncheon Opportunity

 

Earlier today, TMCC’s Kate Oddo and Bill Pang conducted a non-road show investor luncheon/forum in NYC, with the goal of sharing and having open dialogue with existing and prospective institutional investors as to TMCC capital markets initiatives, and also sharing with the audience TMCC’s perspective about Diversity & Inclusion. BAML took the lead and hosted the event and Mischler was designated by TMCC as ‘co-manager’ in coordinating the day’s program, and we presented TMCC a total of 58 new accounts today.  12 accounts were represented in person with 46 dial-ins.  MFG clients that participated included insurance companies, re-insurers, managers of endowments, pensions, charitable trusts and foundations, RIA’s, SFOs, commercial banks, private wealth managers, private banks, trust company managers, fund managers for captive insurance and multi-family offices whose managed assets include some of the wealthiest people in the United States. To all of you accounts out there – you know who you are– you contributed to making history today, for moving the needle forward for D&I in an indelible way for our IG DCM, and for being there for the nation’s oldest Service Disabled Veteran broker dealer.

But most of all I and we would like to thank Toyota’s Kate Oddo and Bill Pang for their foresight to challenge us to be the best we can be with such a formidable.  This was a golden opportunity for Toyota to raise the bar for financial diversity broker dealers and investment banks.  We appreciate your meaningful focus to create a game-changing event for diversity and inclusion and for the thought leadership you both provided for Toyota, Mischler and our debt capital markets.  People have taken note of this.

IG Primary & Secondary Market Talking Points

 

  • Mischler Financial served as an active Co-Manager on today’s FNMA $3.5b 5-year Unsecured Notes new issue.  We thank the fine folks at Fannie Mae for including Mischler, nation’s oldest SDVBE in such a meaningful way.  Thanks also to all the accounts who gave us orders.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 7 IG Corporate-only new issues was 16.92 bps.
  • BAML’s IG Master Index tightened 1 bp to +141 vs. +142.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +138.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Standard & Poor’s Global Fixed Income Research tightened 1 bp to +187 vs. +188.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $18.2b on Tuesday versus $12.4b Monday and $18.2b the previous Tuesday.
  • The 10-DMA stands at $15.9b.

 Ya Gotta Believe! Go Mets!

Have a great evening!
Ron

 

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. (more…)

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