Browsing articles tagged with "service-disabled-veterans Archives - Mischler Financial Group"
Trump’s “Phenomenal Tax Plan” Pushes Equities Higher..For How Long?
February 2017      Equities Market Commentary   

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

 

larry-peruzzi-mischler-equitiies

Larry Peruzzi

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

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

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

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

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

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

Larry Peruzzi

Managing Director International Trading

Mischler Financial Group

Investment Banking | Institutional Brokerage

Ph:   1-617-420-8472

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

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

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

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

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

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

 

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

Global Market Recap

IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates for January 

Morgan Stanley Inc. $3b 10 year Deal Dashboard

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

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending January 11th     

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

 

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

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

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

 

Global Market Recap

 

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

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Regency Centers LP upsized today’s two-part 10s/30s Senior Notes new issue to $650mm from $600mm at the launch and at the tightest side of guidance.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 13 IG Corporate-only new issues was <14.04> bps.
  • BAML’s IG Master Index tightened 1 bp to +128 vs. +129.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at +122.  The “LUACOAS” wide since 2012 is +215. The tight is +122.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +166.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $13.7b on Friday versus $19.4b on Thursday and $18.1b the previous Friday.

 

Syndicate IG Corporate-only Volume Estimates for January 

 

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

 

Morgan Stanley Inc. $3b 10 year Deal Dashboard

 

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

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

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

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

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

 

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

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

 

 

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

 

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

 

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

 

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

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

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

 

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

Have a great evening!

Ron Quigley, Managing Director & Head of Fixed Income Syndicate

 

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

 

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

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

 

New Issues Priced

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

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

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

IG          

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

 

 Indexes and New Issue Volume

*Denotes 52-week low.

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

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

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

 

Lipper Report/Fund Flows – Week ending January 11th     

     

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

 

Economic Data Releases

 

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

 

Rates Trading Lab

 

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

 

Today’s highlights were:

 

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

 

UST Resistance/Support Table

 

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

 

Tomorrow’s Calendar

 

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

(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…)

Mischler Boston Team Gives Back to Vets DAV 5k
November 2016      Giving Back   

November 12-2016–Mischler Financial Group’s Boston Office team, home to Mischler’s International Equities Group turned out in force to participate in the 2016 DAV 5K Boston Run to Honor Veterans, one of Boston’s leading Veterans Day fundraising programs.

The DAV 5K Run to Honor Veterans is a run, walk, roll and motorcycle ride that thanks those who served and raises awareness of the issues our ill and injured veterans face every day. The DAV 5K National Series is presented by DAV (Disabled American Veterans), a nonprofit organization that helps more than 1 million veterans in life-changing ways each year.

“The events help further the mission of DAV to ensure our injured heroes are not alone on their road to recovery. When you participate in the DAV 5K and encourage others to support this event, you are investing in the lives of our wounded American heroes who have sacrificed for our freedoms.”

mischler-boston-2016-DAV-5K-fundraiser

(l) Mischler Managing Dir Larry Peruzzi, Guest Marybeth Forbes, Lauren Peruzzi; Right Side Image: (l) Chris Dorin (The Boston Company), Marybeth Forbes,Mischler sales/trader Jeanne Austin, Larry Peruzzi, Lauren Peruzzi

 

 

 

 

Quigley’s Corner Veterans Day: Good Day for Green Bonds & Diversity
November 2016      Debt Market Commentary   

Quigley’s Corner 11.10.16  Veterans Day Edition; Investment Grade Debt Market Pulses: Green Bonds + Diversity


Honoring Veterans Day

Investment Grade New Issue Re-Cap 

Reviewing This Week’s IG Primary Market Driver Averages by the Numbers

IG Primary & Secondary Market Talking Points

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

The Goldman Sachs Group, Inc. $2.75b 10NC9 Deal Dashboard

Southern Power Co. $1.3b 3-part 3s/5s/30s

J.P. Morgan Chase & Co. $1.10b 11NC10 Deal Dashboard

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

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 9th  

Investment Grade Credit Spreads

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

mischler-veterans-day-debt-market-green-bonds-diversity

I have a lot for you here today – a tribute to our Vets on Veterans Day, the Global Market Recap, a Review of this Week’s Primary Market Driver Averages, IG Primary and Secondary Market Talking Points, The WTD and MTD Volume Tables and then Deal Dashboards for the three deals that Mischler was involved in today namely Goldman Sachs, Southern Power and J.P. Morgan Chase. Following that are today’s “Thank yous”, a drill down into the EEI’s Green panel discussion and of course the “Best and Brightest” numbers and thoughts for next week’s IG new issue volume.

Why is the “QC” so late tonight?  Because it was a VERY busy day today for your humble corner correspondent.  But rather than leave for the long weekend, I read the below and thought, “the veterans we celebrate tomorrow (today actually) are the ones who had it tough.”  Ours is a cakewalk compared to what the men and women in uniform do day in and day out – for all of us.  That was about all I needed to read to realize, the “QC” gets out in its entirety tonight with nothing missing.  No short cuts, no skipping sections. If people read it great. If they don’t, well at least I left it on the floor and finished the job the way you all expect it be finished – complete.

It’s more than the trade, it’s more than the new investor, it’s more than the coverage and the capital.  This firm is owned by Service Disabled Veterans.  Metal joints, limps, shrapnel stuck in their bodies, scars where you know something near fatal happened.  All humble all dedicated and all fiercely patriotic.  It makes decisions like sticking around to finish this job pretty damned easy and I do it because they earned the certification that gives all of us here at team Mischler the opportunity to do what we do.    It’s a no brainer.  1:00AM on Veterans Day.  That’s my small give back and tribute to the great team of veterans who run the nation’s oldest SDVBE.  Thank each and every one of you from the top, down.

Investment Grade New Issue Re-Cap 

 

6 IG Corporate issuers priced 11 tranches between them totaling $8.05b and taking the WTD total to 91% of this week’s syndicate midpoint average forecast or $8.995b vs. $9.83b.

Global Market Recap

  • S. Treasuries – JGB’s, Bunds, Gilts, etc., are having a rough go with President-elect Trump.
  • 3mth Libor – Set at the highest yield (0.90206%) since May 2009.
  • Stocks – Big rally for the Dow & a new all-time high. NASDAQ was red.
  • Economic – U.S. claims data was solid. Weaker data in France & Italy.
  • Currencies – USD outperformed 4 of the Big 5 but the Pound was the star today.
  • Commodities – Copper with another strong bid. Crude oil & gold closed red.
  • CDX IG: -0.28 to 74.18
  • CDX HY: +6.34 to 411.11
  • CDX EM: +29.47 to 272.20

CDX spreads mover wider after 3pm

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

-Tony Farren

 

Reviewing This Week’s IG Primary Market Driver Averages by the Numbers

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

 

  • NICS:  <3.60> bps
  • Oversubscription Rates: 4.26x
  • Tenors:  13.31 years
  • Tranche Sizes: $692mm
  • Spread Compression from IPTs to the Launch: <22.96> bps

 

Versus last Friday’s key primary market driver averages, NICs tightened a hefty <2.68 bps> to an average <3.60> bps vs. <0.92> bps while over subscription or bid-to-cover rates grew 0.93x to 4.26x vs. 3.33x last week.  Average tenors pushed way out 1.98 years to 13.31 yrs vs. 11.33 yrs while tranche sizes grew by $223mm to $692mm vs. $469mm..

Standard and Poor’s Investment Grade Composite Spreads tightened 2 bps to +184 versus last Friday’s +186.

For the week ended November 9th, Lipper U.S. Fund Flows reported an inflow of $675.4m into Corporate Investment Grade Funds (2016 YTD net inflow of $40.967b) and a net outflow of $668.6m from High Yield Funds (2016 YTD net inflow of $6.285b).

Week-on-week, BAML’s IG Master Index tightened a dramatic 5 bps to +136 vs. last Friday’s +141 close.  Spreads across the four IG asset classes also tightened a dramatic 5.25 bps to  bps to 26.75 vs. 32 as measured against their post-Crisis lows.  Looking at the 19 major industry sectors, spreads tightened 4.05 bps to 33.37 vs. 37.42 also against their post-Crisis lows.

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 13 deals that printed, 11 tightened versus NIP for a 50% improvement rate while with 2 trading flat (15.50%).
  • For the week ended November 9th, Lipper U.S. Fund Flows reported an inflow of $675.4m into Corporate Investment Grade Funds (2016 YTD net inflow of $40.967b) and a net outflow of $668.6m from High Yield Funds (2016 YTD net inflow of $6.285b).
  • BAML’s IG Master Index tightened 1 bp to +136 vs. +137.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 2 bps to 1.30 vs. 1.32.  The “LUACOAS” wide since 2012 is +215. The tight is +135.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +184.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $20.2b on Wednesday versus $15b Tuesday and $17.5b the previous Wednesday.
  • The 10-DMA stands at $16.6b.

 

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

 

IG Corporate New Issuance This Week
11/07-11/11
vs. Current
WTD – 8.995b
November 2016 vs. Current
MTD – $16.461b
Low-End Avg. $8.09b 111.19% $90.70b 18.15%
Midpoint Avg. $9.83b 91.51% $92.11b 17.87%
High-End Avg. $11.57b 77.74% $93.52b 17.60%
The Low $0.1b 8995.00% $71b 23.18%
The High $20b 44.97% $110b 14.96%

 

The Goldman Sachs Group, Inc. (NYSE:GS) $2.75b 10NC9 Deal Dashboard

 

GS Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
10NC9 +150a +140a (+/-2.5) +137.5 +137.5 <12.5>  bps N/A 134/132 <3.5>

 

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

 

GS  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
10NC9 $2.75b $7.5b 2.73x

 

Final Pricing – The Goldman Sachs Group, Inc.
GS $2.75b 3.50% due 10yr 11/16/2026 NC9 @ $99.741 or T+137.5

Southern Power Co. (NYSE:SO) $1.3b 3-part 3s/5s/30s

 

SO Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
1.95% 2019 +95-100 +85a (+/-5) +80 +80 <17.5> bps 0 80/78 flat
2.50% 2021 +110-115 +105a (+/-5) +100 +100 <12.5> bps 0 100/98 flat
4.95% 2046 +235a +215a (+/-5) +210 +210 <25> bps <1> 209/207 <1>

 

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

 

SO  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
3yr $600mm $1.2b 2x
5yr $300mm $700mm 2.33x
30yr $400mm $1.2b 3x

 

Final Pricing – Southern Power Co.

SO $600mm 1.95% due 12/15/2019 @ $99.975 to yield 1.958% or T+80  MW+12.5
SO $300mm 2.50% due 12/15/2021 @ $99.781 to yield 2.546% or T+100  MW+15
SO $400mm 4.95% due 12/15/2046 @ $98.562 to yield 5.043% or T+120  MS +35

J.P. Morgan Chase & Co. (NYSE:JPM) $1.10b 11NC10 Deal Dashboard

 

JPM Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
11NC10 +170a +155a (+/-3) +152 +152 <18> bps N/A 151/148 <1>

 

Final Pricing – J.P. Morgan Chase & Co.

JPM $1.1b 3.625% due 12/01/2027 @ $99.827 to yield 3.644% or T+152


Team Mischler thanks today’s three issuers who rewarded the nation’s oldest Service Disabled Veteran certified broker dealer with Co-Manager roles  –
The Goldman Sachs Group, Inc., J.P. Morgan Chase & Co. and Southern Power Co.

There are a lot of people on the issuance side as well as syndicate to thank.  The day has been relentlessly busy – which is always a good thing –

Next up was Southern Company and today’s $1.3B three-part 3s/5s/30s transaction that will use 3- and 5-year proceeds to fund eligible “Green” projects including solar and wind facilities located in the U.S. As I have written here many times before, the social responsibility overlay between Green initiatives and Diversity and Inclusion procurement initiatives are clear.  Why not turn to one of the power sector’s top financial minds none other than Southern Company’s Executive Vice President and Chief Financial Officer, Art Beattie who participated in a very meaningful panel discussion titled, Financing the Clean Energy Future at this week’s 51st Annual EEI Financial Conference in Phoenix that ran Sunday thru Wednesday.  The panel discussed Sustainability Reporting, Environmental, Social, Governance (ESG) Assessment, and of course Green Bonds.  The new buzzwords in the burgeoning field of socially and environmentally conscious investing.  The panel discussion also focused on current challenges that investment restrictions present, how they may grow in the future, and the potential path forward for old and new technologies.  Capturing new investment opportunities were also explored.

Today Southern Power Company illustrated what I mean when I say mandates and initiatives start from the top/down.  Quite literally, “SO’s” own CFO introduced new initiatives, he talked about them in front of the most seasoned power professionals in Phoenix replete with industry CEO’s other CFOs and movers and shakers. Sure enough, today Southern Power bridged Green bonds with D&I to create a wonderful opportunity that helped capture new high quality investors to the transaction.  Mischler is proud to say that we were active co-managers on Southern Company’s earlier green bond as well as today’s along with Apple’s and MTA green issuances.  Considering that Green bonds represent less than one half of one percent of the $20 trillion bond market we feel we’re in privileged company.  It’s not about where we are today, rather it’s about tomorrow and green is good as is social responsibility.  We see this mandate extending into asset backed issuance.

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 22 syndicate desks surveyed in today’s Best & Brightest poll.  21 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 22 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 79.82% 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.

Syndicate IG Corporate-only Volume Estimates for Next Week

 

IG Corporate New Issuance Next Week
11/14-11/18
Low-End Avg. $28.32b
Midpoint Avg. $29.45b
High-End Avg. $30.59b
The Low $20b
The High $40b

 

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

 

Next Week
11/14-11/18
1: 20b
1: 20-25b
3: 25b
6: 25-30b
4: 30b
2: 30-35b
3: 35b
1: 35-40b
1:38b

 

 

Enjoy a safe and happy Veteran’s Day weekend!
Ron Quigley, Managing Director and 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

 

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

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
11/07
TUES.
11/08
WED.
11/09
THUR.
11/10
FRI.
11/11
AVERAGES
WEEK 11/07
AVERAGES
WEEK 10/31
AVERAGES
WEEK 10/24
AVERAGES
WEEK 10/17
New Issue Concessions <3> bps N/A N/A <3.67> bps Holiday <3.60> bps <0.87> bps <0.51> bps 3.31 bps
Oversubscription Rates 2.50x N/A N/A 4.44x Holiday 4.26x 3.32x 2.61x 3.05x
Tenors 4.50 yrs N/A N/A 14.91 yrs Holiday 13.31 yrs 11.33 yrs 7.77 yrs 9.16 yrs
Tranche Sizes $472mm N/A N/A $732mm Holiday $692mm $491mm $818mm $1,137mm
Avg. Spd. Compression
IPTs to Launch
<16.5> bps N/A N/A <24.14> bps Holiday <22.96> bps <17.87> yrs <17.42> 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
CF Industries Inc. Baa3/BBB 3.40% 12/01/2021 500 <50> curve +195a (+/-5) +190 +190 GS/MS
CF Industries Inc. Baa3/BBB 4.50% 12/01/2026 750 +high 200s/+287.5 +250a (+/-5) +245 +245 GS/MS
Con Edison Co. of NY Inc. A2/A- 2.90% 12/01/2026 250 +100a +85a (+/-5) +80 +80 CITI/JPM/MIZ/MUFG
Con Edison Co. of NY Inc. A2/A- 4.30% 12/01/2056 500 +165a +145a (+/-5) +140 +140 CITI/JPM/MIZ/MUFG
Goldman Sachs Group, Inc. A3/A 3.50% 11/16/2029 2,750 +150a +140a (+/-2.5) +137.50 +137.5 GS-sole
J.P. Morgan Chase & Co. Baa1/BBB+ 3.625% 12/01/2027 1,100 +170a +155a (+/-3) +152 +152 JPM-sole`
Southern Power Co. Baa1/BBB+ 1.95% 12/15/2019 600 +95-100 +85a (+/-5) +80 +80 BAML/BNPP/BARC/MIZ/SCOT/USB
Southern Power Co. Baa1/BBB+ 2.50% 12/15/2021 300 +110-115 +105a (+/-5) +100 +100 BAML/BNPP/BARC/MIZ/SCOT/USB
Southern Power Co. Baa1/BBB+ 4.95% 12/15/2046 400 +235a +215a (+/-5) +210 +210 BAML/BNPP/BARC/MIZ/SCOT/USB
Virginia Electric & Power A2/A 2.95% 11/15/2026 400 +105a +90a (+/-5) +85 +85 BNPP/MUFG/SCOT/STRH/USB
Virginia Electric & Power A2/A 4.00% 11/15/2046 500 +135a +115a (+/-5) +110 +110 BNPP/MUFG/SCOT/STRH/USB

 

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 13 deals that printed, 11 tightened versus NIP for a 84.50% improvement rate while with 2 trading flat (15.50%).

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 LEADS
CF Industries Inc. Baa3/BBB 3.40% 12/01/2021 500 <50> curve +195a (+/-5) +190 +190 177/174
CF Industries Inc. Baa3/BBB 4.50% 12/01/2026 750 +high 200s/+287.5 +250a (+/-5) +245 +245 231/228
Con Edison Co. of NY Inc. A2/A- 2.90% 12/01/2026 250 +100a +85a (+/-5) +80 +80 79/77
Con Edison Co. of NY Inc. A2/A- 4.30% 12/01/2056 500 +165a +145a (+/-5) +140 +140 137/135
Goldman Sachs Group, Inc. A3/A 3.50% 11/16/2029 2,750 +150a +140a (+/-2.5) +137.50 +137.5 134/132
J.P. Morgan Chase & Co. Baa1/BBB+ 3.625% 12/01/2027 1,100 +170a +155a (+/-3) +152 +152 151/148
Southern Power Co. Baa1/BBB+ 1.95% 12/15/2019 600 +95-100 +85a (+/-5) +80 +80 80/78
Southern Power Co. Baa1/BBB+ 2.50% 12/15/2021 300 +110-115 +105a (+/-5) +100 +100 100/98
Southern Power Co. Baa1/BBB+ 4.95% 12/15/2046 400 +235a +215a (+/-5) +210 +210 209/207
Virginia Electric & Power A2/A 2.95% 11/15/2026 400 +105a +90a (+/-5) +85 +85 84/82
Virginia Electric & Power A2/A 4.00% 11/15/2046 500 +135a +115a (+/-5) +110 +110 109/107
Kellogg Co. Baa2/BBB 2.65% 12/01/2023 600 +120-125 +110a (+/-3) +107 +107 105/103
Stanley Black & Decker A-/BBB+ 1.622% 11/17/2018 345 +95-100 N/A +80 +80 75/73

 

Indexes and New Issue Volume

 

Index Open Current Change
LUACOAS 1.32 1.30 <2>
IG27 74.467 75.447 0.98
HV27 168.795 163.29 <5.505>
VIX 14.38 14.74 0.36
S&P 2,163 2,167 4
DOW 18,589 18,807 218
 

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

DAY: $8.05 bn DAY: $8.05 bn
WTD: $8.995 bn WTD: $8.995 bn
MTD: $16.461 bn MTD: $16.461 bn
YTD: $1,185.242 bn YTD: $1,515.126 bn

 

Lipper Report/Fund Flows – Week ending November 9th   

     

  • For the week ended November 9th, Lipper U.S. Fund Flows reported an inflow of $675.4m into Corporate Investment Grade Funds (2016 YTD net inflow of $40.967b) and a net outflow of $668.6m from High Yield Funds (2016 YTD net inflow of $6.285b).
  • Over the same period, Lipper reported a net outflow of $45.4m from Loan Participation Funds (2016 YTD net outflow of $1.563b).
  • Emerging Market debt funds reported a net inflow of $345.7m (2016 YTD inflow of $7.522b).

 

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 26.75 bps wider versus their post-Crisis lows!

 

ASSET CLASS 11/10 11/09 11/08 11/07 11/04 11/03 11/02 11/01 10/31 10/28 1-Day Change 10-Day Trend PC
low
IG Avg. 136 137 139 140 141 141 140 139 138 137 <1> <1> 106
“AAA” 76 80 82 82 83 83 83 82 82 80 <4> <4> 50
“AA” 83 85 85 86 87 87 87 86 86 85 <2> <2> 63
“A” 107 109 110 111 112 112 112 111 111 110 <2> <3> 81
“BBB” 177 178 180 181 183 182 181 180 178 176 <1> +1 142
IG vs. HY 361 357 359 361 379 374 375 366 353 339 +4 +22 228

 

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 33.37 bps wider versus their post-Crisis lows!

                                    

INDUSTRY 11/10 11/09 11/08 11/07 11/04 11/03 11/02 11/01 10/31 10/28 1-Day Change 10-Day Trend PC
low
Automotive 119 121 121 122 122 120 122 121 120 119 <2> 0 67
Banking 124 127 128  129 130 130 130 129 129 128 <3> <4> 98
Basic Industry 176 177 179 180 182 181 181 180 179 179 <1> <3> 143
Cap Goods 102 103 105 105 107 106 106 105 105 103 <1> <1> 84
Cons. Prod. 108 109 110 111 112 112 112 111 110 109 <1> <1> 85
Energy 179 179 180 182 184 183 183 180 179 177 0 +2 133
Financials 161 162 163 164 167 166 165 164 162 160 <1> +1 97
Healthcare 118 121 124 124 126 124 123 122 120 118 <3> 0 83
Industrials 138 140 141 142 144 143 143 141 140 139 <2> <1> 109
Insurance 148 150 152 153 154 154 153 153 153 153 <2> <5> 120
Leisure 138 139 138 138 139 138 138 138 138 138 <1> 0 115
Media 161 163 164 165 167 166 165 164 162 160 <2> +1 113
Real Estate 146 147 145 146 146 146 146 146 146 146 <1> 0 112
Retail 118 121 122 122 123 123 122 121 120 118 <3> 0 92
Services 130 130 130 130 130 130 130 129 129 129 0 +1 120
Technology 112 115 117 118 120 120 120 119 117 115 <3> <3> 76
Telecom 165 168 170 171 173 172 172 170 168 167 <3> <2> 122
Transportation 136 137 138 139 140 140 139 138 137 137 <1> <1> 109
Utility 137 137 138 138 139 139 138 138 138 137 0 0 104

 

New Issue Pipeline

Please note that for ratings I use the better two of Moody’s, S&P or Fitch.

 

  • HollyFrontier Corp. (Baa3/BBB-) asked Bank of America/Merrill Lynch, Citigroup, Goldman Sachs, MUFG and Toronto Dominion to arrange fixed income investor calls are scheduled for Monday and Tuesday, November 14th and 15th.  Citigroup coordinated.
  • Bank Nederlandse Gemeenten (Aaa/AAA) the Dutch bank and Local Government Funding Agency mandated BNP Paribas, HSBC and Toronto Dominion to arrange fixed income investor calls in preparation for its inaugural 144a/REGS Sustainability Bond transaction that could soon follow their conclusion.
  • The Republic of South Africa (Baa2/BBB-) mandated HSBC, J.P. Morgan and Nedbank to arrange fixed income investor meetings in the U.S., Europe, Middle East and Asia that began on Sunday, November 6th in Dubai.  Meetings took place thru Friday, November 11th.
  • Korea Hydro and Nuclear Power Co. Ltd. (Aa2/AA) mandated BNP Paribas and Citigroup to arrange fixed income investor meetings in the U.S. that began Tuesday, October 18th in New York, continued on the 19th in Boston and wrapped up in Chicago on the 20th.
  • Hyundai Capital Services (Baa1/A-) mandated Citigroup, HSBC and Nomura as joint book runners to arrange investor meetings that began on Monday, October 17th in preparation for a dollar-denominated 144a/REGS new issue.
  • Nacional Financiera SNC (A3/BBB+) mandated Bank of America/Merrill Lynch and HSBC as joint leads to arrange fixed income meetings that took place Wednesday, September 27th thru Thursday the 28th in London, New York, Boston and Los Angeles in preparation for a possible dollar-denominated new issue that could soon follow their conclusion.
  • Banco Inbursa (BBB+/BBB+) mandated Bank of America/Merrill Lynch, Citigroup and Credit Suisse as joint book runners to arrange fixed income investor meetings in the U.S., Mexico and Europe that began on Wednesday, September 7th and continued through the 12th making stops in Mexico, London, Boston, New York and L.A. Fitch recently assigned an expected long-term rating of “BBB+” to Banco Inbursa’s proposed $1.5b 10-year Senior Notes.
  • Industrial Bank of Korea (Aa2/AA-) mandated HSBC and Nomura to arrange fixed income investor meetings in Hong Kong and Singapore that began on Monday, August 22nd in preparation for a 144a/REGS dollar-denominated offering that could soon follow its conclusion.

 

M&A Pipeline – $330.60 Billion in Cumulative Enterprise Value!

Please note that for ratings I use the better two of Moody’s, S&P or Fitch.

 

  • General Electric Co. (A3/A), a primarily equipment manufacturer, announced on November 1st that it will partner with Baker Hughes Inc. (A/A-), which is essentially a drilling and hydraulic fracturing company in what is being billed as the first “full stream” oil services company including upstream exploration and production, midstream transportation and downstream refining and marketing. Together the GE-controlled entity will represent the world’s second largest oi-field services company with projected revenues of $34bn in 2020. GE will be a 62.5% owner. GE is expected to borrow $7.4b to fund the deal.
  • Qualcomm Inc. (A1/A+) agreed to acquire NXP Semiconductors NV (Ba2/BB+) for $39b in what is the largest semiconductor purchase in history. It’s also the second largest tech merger behind Dell’s purchase of EMC.  Qualcomm will pay a 34% premium and including debt the deal is worth $47b. The deal will be financed with offshore cash and new debt. Goldman Sachs and Evercore advised Qualcomm.  Goldman Sachs and J.P. Morgan are providing debt financing for the deal.
  • AT&T (A-/BBB+) agreed to buy Time Warner (Baa2/BBB+) for $85.4b.  This follows Comcast’s purchase of NBCUniversal and Verizon’s acquisition of Yahoo. Both AT&T and Time Warner boards approved the deal that now has to confront regulatory hurdles. It hopes to complete the transaction by the end of 2017.  To finance the half cash, half stock deal will involves AT&T taking on $40b in bridge loans.
  • American Electric Power (“AEP) (Baa1/BBB+) today agreed to sell four power plants in the Midwest for a total of $2.17b to a private equity firm created by Blackstone Group and ArcLight Capital Partners. AEP is divesting of many wholesale power markets focusing instead more on its regulated utility businesses.  The closing of the transaction is expected sometime in Q1 2017.
  • Bayer AG (Baa3/BBB+) agreed to buy Monsanto Co. (A3/A-) in a deal valued at $66 billion. Bayer agreed to pay $128 per share in cash – a 21% premium to Monsanto’s closing price on 9/13.  It represents the year’s largest deal and the single largest takeover by a German company.
  • NextEra Energy Inc. (Baa1/A-) agreed to purchase Dallas-based, Oncor Electric Delivery Co. LLC (Baa1/A) for $18.4b. Oncor is the largest electric transmission operator in Texas serving approximately 10 million customers in the Lone Star state.  This not only gives NextEra a dominant position in Texas’ electric sector but is critical in taking Energy Future Holdings out of chapter 11 bankruptcy.
  • Zimmer Biomet (Baa3/BBB) completed its offer to purchase all outstanding shares of LDR stock on Wednesday, July 13th.  Zimmer announced on June 7th that it agreed to purchase medical device maker LDR Holding Corp. for $37 per share in cash for a total transaction value of $1b. Zimmer expects to maintain its IG rating and to issue $750mm in Senior Unsecured Notes in order to repay the credit facility. Goldman Sachs is acting as advisor to Zimmer Biomet.
  • This past February, Algonquin Power & Utilities Corp. (NR/BBB) announced it will acquire The Empire District Electric Company (N/A) in a $3.4b CAD or $2.4b USD equivalent all cash transaction and today, Thursday, June 16th, Empire’s shareholders overwhelmingly voted in support of the merger to the tune of 95%.  Regulatory approvals are the next step before finalizing the sale expected sometime in Q1 2017. The merger assumes $900mm in USD debt.
  • Symantec (Baa3/BBB-) announced on June 13th that it entered into an agreement to purchase Blue Coat (Caa2/CCC) for $4.56b in cash. The deal will close sometime in Q3 2016.  Both company boards approved the deal. The transaction will be funded with available cash and $2.8b of new debt. J.P. Morgan is the lead adviser to Symantec.  Bank of America/Merrill Lynch, Barclays and Wells Fargo are also advisers.
  • On Friday, April 29th the Alere Inc. (Caa1/CCC+) Board of Directors rejected a request by Abbott Labs (A2/A+) to terminate their merger agreement in return for around $40mm for transaction expenses. Abbott cited concerns about various Alere representations in their merger agreement including a delayed 2015 Form 10-K filing as well as government investigations. Abbott Labs (A2/A+) had announced on Monday, February Baa1/BBB+1st, that it would acquire Alere Inc. (Caa1/CCC+) for $5.8b in which “ABT” would pay $56 per share of ”ALR.”  The deal was to be financed with debt.  ABT expects a strong IG rating despite the new debt. The deal is subject to “ALR” shareholder as well as regulatory approvals.
  • Abbott Labs (A2/A+) announced on Thursday, April 28th that it will buy St. Jude’s Medical Inc. (Baa2/A-) in a cash-stock deal valued at $25b to reinforce the medical devices maker’s stake in cardiovascular care. Abbott will fund the cash portion of the transaction with new medium- and long-term debt. Bank of America/Merrill Lynch and Evercore are acting as advisors to Abbott. The deal is expected to close by Q4 2016.
  • Sherwin Williams (A2/A-) announced on Monday, March 21st that it will purchase Valspar Corp. (Baa2/BBB) for $9.3b or $113 per share.  The acquisition will help Sherwin-Williams gain access to big-box retailers like Lowe’s where Velspar has access. It will also provide overseas expansion opportunities.  Sherwin Williams will finance the merger with available cash, existing credit facilities and new debt.  The deal should close sometime before the end of Q1 2017.
  • TE Connectivity (A-/A-) announced it will buy medical device maker Creganna Medical for $895mm in cash.  The deal will be funded with available cash and debt.
  • Anthem Inc. (Baa2/A) in July 2015, proposed to purchase Cigna Corp. (Baa1/A) for $54b or $188 per share furthering the consolidation in the healthcare sector. The deal is expected to close sometime during the second half of 2016. The merger would involve 53mm members and will include $22b in new debt and loans.
  • Amphenol Corporation (Baa1/BBB+) announced on June 29th 2015 that it made a binding offer to acquire 100% of FCI Asia
TODAY’S ECONOMIC DATA PERIOD SURVEYED ESTIMATES ACTUAL NUMBER PRIOR NUMBER PRIOR REVISED
Initial Jobless Claims Nov. 5 260k 254k 265k —-
Continuing Claims Oct. 29 2025k 2041k 2026k 2023k
Bloomberg Consumer Comfort Nov. 6 —- 45.1 44.6 —-
Mortgage Delinquencies Q3 —- 4.52% 4.66% —-
MBA Mortgage Foreclosures Q3 —- 1.55% 1.64% —-
Monthly Budget Statement October <$70.0b> <$44.2b> <$136.6b> —-

 

Rates Trading Lab

 

U.S. Treasuries had another poor performance today but not even close to the disaster that occurred yesterday. Today the benchmarks lost between 1.3 bps (2yr: 0.907%) to 6.1 bps (7yr: 1.890%). It has been a brutal week for the Treasury market. Overseas bond markets were also taken to the woodshed today (JGB’s, Bunds, Gilts, etc…). Supply was a factor today ($15 bn 30yr auction / details below) but the Trump victory on Tuesday night is 99% of the reason for the extremely heavy pressure on the Treasury market. Today the Trump camp was talking about rolling back Dodd-Frank and that type of talk leads to risk on and rates selling. I think the Treasury sell off is overdone but who wants to step in front of a freight train heading down hill with no breaks? USTs need a catalyst to offset the Trump sell off and at this point I am not sure what that catalyst will be. The Dow closed up over 200 points and traded at a new all-time high today. On the flip side the NASDAQ was in the loss column. It has been a volatile and wild two days since Trump won the Presidential election. What will the next four years bring?

-Tony Farren

 

UST Resistance/Support Table

 

CT3 CT5 CT7 CT10 CT30
RESISTANCE LEVEL 99-23+ 99-00+ 98-28+ 99-11+ 89-01+
RESISTANCE LEVEL 99-21+ 98-26+ 98-17+ 99-03+ 88-03+
RESISTANCE LEVEL 99-19 98-20+ 98-11+ 98-29 87-08+
         
SUPPORT LEVEL 99-166 98-176 97-30 98-22 85-27+
SUPPORT LEVEL 99-146 98-12 97-23 98-13+ 85-11
SUPPORT LEVEL 99-116 98-08 97-18 98-01 84-24+

 

Tomorrow’s Calendar

 

  • China Data: Nothing Scheduled
  • Japan Data: Loans & Discounts Corp, PPI, Tertiary Industry Index MoM
  • Australia: Nothing Scheduled
  • EU Data: German Oct CPI U.K. Sep Const Output
  • S. Data: Nov U Mich
  • Supply: Italy 3, 7, 24, 31y (€5.25-7.25bn), Spain/France details
  • Events: Ratings reviews, U.S. closed
  • Speeches: Fischer, Debelle, Poloz, Lane

(more…)

Mischler Equities Market Week In Review-A Look to Election Day-11.04.16
November 2016      Equities Market Commentary   

Peruzzi’s Perch 11.04.16 – Equities Market Week In Review & Ahead: It’s All About The Presidential Election

larry-peruzzi-mischler-equitiiesThe complexion of the U.S markets changed dramatically this week when the FBI reopened the Clinton email investigation.  James Comey did what the Fed, earnings, oil and economic data was unable to do; his self-described “focus on full transparency” caused market volatility to spike, evident by the 42% rise in the VIX index. Make no mistake about it, this market is squarely being controlled by Tuesday U.S Presidential election. We did have numerous noteworthy items this week…

A decent October jobs report when looked at coupled with September’s +35K revision, gains in nonfarm productivity, some growth in ISM manufacturing, and dovish personal income and spending data. We also saw weakness in Oil with Wednesday’s U.S inventory and OPEC production data pushing WTI back below $44 a barrel and down 9% for the week. Bank of England voted 9-0 to keep rates unchanged and Egypt devalued and raised rates by 300 bps. Q3 earnings are wrapping up and looked decent overall.

All these items would normally be a bigger deal but all were relegated to the back seat with Mr. Comey’s actions dramatically tighten the Presidential race (Clinton 12 point lead down to 3 points). The coming election is solely in the driver’s seat. Residents of battleground states of New Hampshire, Ohio, North Carolina, Pennsylvania, Florida, Colorado and Arizona can expect a large amount of political bombardment this weekend. The Presidency and control of the senate is at stake in these crucial 7 states. Mexico reportedly was making contingency plans in case of a Donald Trump victory.  It will be and interesting weekend to say the least. Markets saw a fair amount of hedging and speculative trading activity this week as investor’s distain for uncertainty grows. As of Friday U.S markets were battling in an attempt to break an 8 day losing streak. A 9th down day for the S&P 500 index would mark the longest losing streak in 36 years and European stocks hit oversold levels on Friday.

Looking ahead to next week, it will be the Election on Tuesday and the results analysis on Wednesday that will dictate our direction and short term future. Earnings highlights next week (only 31 S&P 500 names reporting) are Rockwell on Monday, DR Horton and CVS on Tuesday, Viacom on Wednesday and Macy’s, Nordstrom and Kohl’s on Thursday.  Biggest economic data point will be Friday’s University of Michigan sentiment data, and I expect it will be largely dismissed as the control of Congress and the White House will make next month’s sentiment data more meaningful. Fundamental analysts will be happy to get back to work latter in the week after macro and micro data points come back into focus.

Fed governors have been quiet lately, but their pointing to coming rate hikes have been heard as Fed Fund Implied Probability is pricing in a 74% chance of a December 14 rate hike of 25 bps. Chicago President Evans speaks on the Economy and Policy in NYC on Tuesday and I’d expect he minces his words carefully. Fed’s Williams speak on Wednesday, Bullard on Thursday and Fischer on Friday. We might see the gloves come off with some interesting and insightful comments coming out after the election. Although most of the country is experiencing mild temperatures, November does tell us colder weather is coming. So, as refiners switch over to heating oil, crude will be in focus next week.  Traders will be looking for production levels out of Saudi Arabia and Russia, refining capacity and any news from OPEC that might signal some strength for the commodity but resent production numbers points toward further weakness.

In a nutshell, markets will be looking at higher interest rates soon and a potential shift in power in Washington. Cash looks to be King until these story lines play out. Remember to vote but please only vote once so we can get this behind us.

Larry Peruzzi

Managing Director International Trading

Mischler Financial Group

Investment Banking | Institutional Brokerage

Ph:   1-617-420-8472

Larry Peruzzi is a 20 yr global trading markets veteran and brings to Mischler a unique background. His career experience  and best execution perspective stems from his sitting on ‘both sides of the aisle.’  For more than half of Larry’s career, he ran buy-side trading desks for Standish Mellon and thereafter, The Boston Company. In both of those roles, Larry was responsible for implementing and managing international equities trade execution. Larry’s perspectives are frequently cited by the leading financial news publishers, including The Wall Street Journal, Bloomberg LP and Reuters. (more…)

Fed NOT Raising Rates-Mischler Debt Market Comment
September 2016      Debt Market Commentary   

Quigley’s Corner 09.15.16 Fed Not Raising Rates

 

Investment Grade Corporate Debt New Issue Re-Cap – IG Lotto:Corporate Volume Tops Weekly Syndicate Estimates

 Global Market Recap

All You Need to Know About Today’s Bank of England Meeting

IG Primary & Secondary Market Talking Points

Fixed Income Syndicate IG Corporate-only Volume Estimates for September

New Issues Priced

Lipper Report/Fund Flows

IG Corporate Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 

Today’s winning lotto numbers are 11-16-945 as in 11 IG Corporate issuers, priced 16 tranches totaling $9.45b.  With that amount we have officially broken through this week’s syndicate midpoint average forecasts by over 7% or $39.745b vs. $36.91b. Notable today was that 4 issuers upsized their transactions from initial morning announcement sizes.

Remember what I wrote this past Monday folks (Check your “QC” dated 9/12/2016.  – “Look folks, the Fed is not raising rates this year.  Many sight December as the next hike but it’s not happening.” The world can barely stand on two feet let alone get economic engines back to growth mode.  Today’s numbers confirm that. With that, read my lips, or read my commentary, but the take-away is the same: Fed NOT Raising Rates (at least not anytime soon, nor with any degree of significance that would upend the current global financial market environment).

Global Market Recap

 

  • S. Treasuries – USTs closed mixed with steeper curve. 5/30’s has steepened 10 days in a row.
  • 3mth Libor – Set at its highest yield (0.85656%) since May 2009.
  • Stocks – US stocks with a strong rally. FTSE leads Europe higher. Nikkei had a bad day.
  • Economic – Very disappointing day on the U.S. economic front.
  • Currencies – USD mixed & little changed vs. Euro & PND but lost ground vs. Yen/CAD/AUD.
  • Commodities – Crude eked out a gain, heating oil higher & gold lost ground.
  • CDX IG: -3.0 to 74.31
  • CDX HY: -11.76 to 405.92
  • CDX EM: -5.58 to 255.94

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

-Tony Farren

 

All You Need to Know About Today’s Bank of England Meeting

 

  • BOE Sees chance of another rate cut this year but holds today at 0.25%; Vote 9-0.
  • BOE keeps gilt purchase plan at £435b; Vote 9-0.
  • Holds corporate bond plan at £10b; Vote 9-0.
  • Monetary Policy Committee Majority expect rate cut “if” August outlook is confirmed.
  • Initial impact of August stimulus is “encouraging.”
  • Some near-term indicators are “better than expected.”
  • Inflation reaching 2% target in first half of 2017.
  • Lower bound is close to but a bit above, zero.
  • Second half slowdown may be less severe than previously forecast.
  • Cannot infer from near-term about 2017 or 2018 projections.
  • MPC view of “contours of economic outlook” are unchanged.
  • Hawkish BOE members Forbes, McCafferty say extra gilt purchases still not warranted.

 

IG Primary & Secondary Market Talking Points

 

  • Kite Realty Group LP upsized today’s 10-year Senior Notes new issue to $300mm from $250mm at the launch and at the tightest side of guidance.
  • CCL Industries Inc. increased today’s 10-year Senior Notes new issue to $500mm from $400mm at the launch and at the tightest side of guidance.
  • Dairy Farmers of America Inc. bumped up its new $1,000 par PerpNC10 cumulative preferred securities, Series “C” new issue to $150mm from $100mm at the launch and at the tightest side of guidance.
  • Pitney Bowes Inc. boosted its 5-year Senior Notes new issue to $600mm from $400mm at the launch.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 16 IG Corporate-only new issues was 23.34 bps.
  • BAML’s IG Master Index widened 1 bp to +143 versus +142.  +106 represents the post-Crisis low dating back to July 2007.
  • Standard & Poor’s Global Fixed Income Research was unchanged at +191.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $17b on Wednesday versus $15.8b Tuesday and $16.5b the previous Wednesday.
  • The 10-DMA stands at $14b.

(more…)

Debt Investors Prefer Preferreds Today
February 2016      Debt Market Commentary, Recent Deals   

Quigley’s Corner 02.16.16 Investors Preference: Preferreds

Investment Grade New Issue Re-CapPrimary Markets Come Alive with Large, Small & Retail

Overall Market Recap

An Apple a Day Keeps the Doctor Away – IG DCM Takes a Bite of the Apple

IG Primary Market Talking Points – One SSA Deal Day

New Issues Priced

Lipper Report/Fund Flows

IG Secondary Trading Lab

Economic Data Releases

Rates Trading Lab

New Issue Pipeline

M&A Pipeline

Investment Grade Credit Spreads (by Industry/Rating)

 

Saudi Arabia and Russia, the world’s top two oil producers agreed to halt oil production, China is back from its week long lunar new year celebration and the Shanghai and Shenzhen closed up 3.29% and 4.10% respectively. European equity markets meanwhile, though off their highs of the day by New York’s early session, were in the black in a big way yesterday and closed mixed to slightly off today.  The net of it all across both Monday and Tuesday was clearly positive. Bloomberg primary market strategist, friend and former colleague, Paul Cohen wrote, “the European issuance window is open and ready for issuers after two clear days of positivity. A third day is possible with equity index futures mostly higher and iTraxx CDS indexes also mostly tighter.” This is the kind of market sentiment and tone the IG dollar DCM so desperately wanted and needed to see.  It was delivered and it did not disappoint or hold back.  A total of 5 issuers announced a total of 19 tranches between them totaling $24b.  The SSA’s Kingdom of Bahrain added two taps boosted the all-in IG day totals to 6 issuers, 21 tranches and $24.75b. It represents the third largest day of the year.

Having said that we have still not crossed the threshold in front-end fixed income despite the moves in oil, spx, and the bounce off the low yields in the long-end. Meaning, the market sees the Fed as unsure and the bounces aren’t strong enough…yet, according to Neil Azous of Rareview Macro.  Hold on though, let’s first digest how today happened.

Many accounts commented today that they were not convinced today was the day to enter the DCM preferring instead to see what the global snapshot looks like tomorrow.  Why wait?  It seems the new standard is “when the window is open…..P-R-I-N-T!” Several accounts, however conjectured that they would have thought given the positive market back-drop this morning, that two or maybe three “A” rated issuers would announce deals and the market would watch them closely and carefully as to their performance into tomorrow.  The assumption being that if the deals performed well and markets were just a “mixed bag” tomorrow, it would induce several other issuers to tap as we carefully bolster investor and issuer confidence. Everyone is entitled to their opinion but it did seem that not many expected today’s calendar and volume after such a negative recent inflection point in the IG dollar DCM.  The wild card was that the U.S. was on holiday yesterday and yesterday just happened to be a very good day for global markets generally speaking.

“There’s Gold in Them Thar Hills!” Retail and Mom and Pop Accounts Clamor to Gold..man Sachs’ $25 Preferred (more…)

Mischler Christmas Holiday Message to US Military and SDVs: Thank You.
December 2013      Company News, Giving Back   

The entire Mischler Financial Group team extends a special holiday salute to all the men and women currently serving in the US Military, those who have served, those injured in the line of duty,  and to the family members of those who have served and made the ultimate sacrifice to protect all of us.

There is no greater honor than serving to defend the freedoms that we hold so dear.

Thank you. We wish you a Merry Christmas and a Happy Holiday Season. We hope the New Year brings you health and happiness.

Walt Mischler, (SDV), Founder & Chairman

Dean Chamblerlain (SDV), Principal & CEO

Doyle Holmes, President & COO

In Honor of Vets on Memorial Day: Mischler Maps To Fisher House
May 2013      Company News, Giving Back, News and Information   

To Honor Vets on Veterans Day,  Mischler Financial Pledges 10% of Month’s Profits To Fisher House Foundation

For Immediate Release

May 6, Stamford, CT—Mischler Financial Group, the financial industry’s leading boutique investment bank and securities brokerage owned and operated by service-disabled veterans, today announced that in honor of the upcoming Memorial Day, the firm will contribute 10% of its May profits to Fisher House, the private-public partnership that provides temporary housing facilities at no cost for visiting family members of disabled veterans who are hospitalized for treatment in local VA medical centers.

Dean Chamberlain, CEO of Mischler Financial Group stated, “In connection with our year-round commitment to various programs that help service-disabled veterans, we’re honored to play a supporting role to Fisher House. This is a critically-important organization that enables veteran family members to provide crucial, onsite care and support for their injured loved ones while they undergo extended medical treatment at venues far from their homes.”

Noted Fisher House CFO David Fox, a U.S. Naval Academy alumni and former senior partner of financial industry consultant Greenwich Associates, “Having the financial support of a firm such as Mischler Financial not only adds wind to our sails, but when considering the legacy of the firm, their recognition speaks volumes to the importance of the Fisher House mission.”

fisherhouse logoAbout Fisher House

Originated in 1990, Fisher House Foundation donates “comfort homes” built on the grounds of major military and VA medical centers. The Fisher House program now operates 60 venues throughout the country and serves more than 19,000 families; it has made available over 4 million days of lodging to family members since the program originated. By law, there is no charge for any family to stay at a Fisher House operated by the Department of Veterans Affairs. Fisher House also administers and sponsors Scholarships for Military Children, the Hero Miles program, and co-sponsors the Newman’s Own Award.

About Mishler Financial Group, Inc.

Established in 1994 and headquartered in Newport Beach, California with regional offices in Stamford, CT, Boston, MA, Chicago, IL, Detroit, MI, and Red Bank, NJ, Mischler Financial Group is a certified minority broker-dealer and Service Disabled Veterans Business Enterprise (SDVBE) providing capital markets services, agency-only execution within the global equities and fixed income markets, and asset management for liquid and alternative investment strategies. The firm’s clients include leading corporate treasurers, public plan sponsors, endowments and foundations. The firm’s website is located at http://mischlerfinancial.com

For Additional Information:

Dean Chamberlain, CEO

dchamberlain@mischlerfinancial.com

Media Inquiries:

Jay Berkman / JLC Group

Tel: 203.255.0034