Browsing articles tagged with "wall street letter 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…)

2017 Investment Grade Debt Issuance Outlook: HUGE Start to New Year
January 2017      Debt Market Commentary   

Quigley’s Corner 01.03.17- 2017 Investment Grade Corporate Bond Issuance Off to HUGE Start

11 IG Corporate Issuers priced 25 tranches between them, totaling $19.90 billion; Fortune Co’s Duke Energy, FedEx & John Deere;  Barclays Leads Bank Issuers

 

Investment Grade New Issue Re-Cap – Monumental Day; If Not Quite As Big as The Trojans’ Rose Bowl Win!!

Global Market Recap

IG Primary & Secondary Market Talking Points

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

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

Barclays PLC $1.5b 30yr Senior Unsecured Notes Deal Dashboard

Duke Energy Florida LLC 2-part 3s/10s FMBs Deal Dashboard

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

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending December 28th     

Investment Grade Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

Here’s what I last wrote in my pre-holiday “QC” dated Thursday, December 15th: “Rest up. Spend time with your families.  Enjoy the holidays, however you celebrate them.  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!”

So, the question is, “how happy is the guy-in-the-corner? USC’s wins 52-49 in what is perhaps the greatest Rose Bowl ever played.  How ‘bout them Trojans?  Chad Helton……Sam Darnold…….the entire Trojan team.  You gotta be kidding me.  Fight On!  They’re back and so am I from my winter hiatus.  So, let’s get to it!

The IG dollar DCM waited for no one.  I woke up at 4:45am this morning to the sounds of the bankers driving down Weaver Street to either ride in early or to catch the Metro North 4:52 a.m. milk train to Manhattan.  It usually always confirms a busy day on the Street.   Sure enough, it was once again very reliable.  I figured, “what the heck,  I have plenty to catch up on at work,” so I got in early and am glad that I did.  11 IG Corporate issuers priced 25 tranches between them totaling $19.90 billion or 18.50% of the syndicate midpoint average estimate for all of January ($108.41b) – which is historically a busy month. Mischler was very proud to have been actively involved in two deals across three tranches – first serving on Barclays PLC’s 30-year Senior Unsecured Notes new issue and then getting an equally great call from the good folks at Duke Energy Florida LLC to serve on its 3- and 10-year FMBs.  In all, it was a very busy day.  But before we get into those deal drill downs let’s first check out Tony Farren’s Global market re-cap, followed by today’s talking points and  then it’s onto the BACR and DUK new issues.

Welcome back everyone and I hope you all enjoyed the break.  Happy New Year!

 

Global Market Recap

 

  • U.S. Treasuries – USTs were red except the 30yr but had an impressive rally during NY hours.
  • Overseas Bonds – Higher inflation & U.K. PMI and supply concerns hammered bonds in the EU.
  • 3mth Libor – Set at its highest yield since May 2009 (0.99872%).
  • Stocks – U.S. stocks higher at 3:30pm but well off the session high levels.
  • Overseas Stocks – Asia higher, EU entered bull market & FTSE record high close.
  • Economic – ISM manufacturing the best in 2 years with prices paid at the highest level since 2011.
  • Overseas Economic – Manufacturing PMI in China & U.K. improved. Higher CPI in Germany, France & Spain.
  • Currencies – DXY Index traded at strongest level since 2002.
  • Commodities – CRB closed down with energy trading poorly but gold & silver rallied.
  • CDX IG: -1.40 to 66.18
  • CDX HY: -6.62 to 348.00
  • CDX EM: -2.17 to 239.91

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • The average spread compression from IPTs thru the launch/final pricing of today’s 25 IG Corporate-only new issues was 16.96 bps.
  • BAML’s IG Master Index widened 1 bp to +130 vs. +129.  +106 represents the post-Crisis low dating back to July 2007.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS widened 1 bp to +123 vs. 1.22.  The “LUACOAS” wide since 2012 is +215. The tight is +122.
  • Standard & Poor’s Investment Grade Composite Spread widened 1 bp to +169 vs. +168.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $2.5b on Friday versus $4.1b on Thursday and $2.2b the previous Friday.

 

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

 

IG Corporate New Issuance This Week
1/02-1/06
vs. Current
WTD – $19.90b
January 2017
Forecasts
vs. Current
MTD – $19.90b
Low-End Avg. no poll taken N/A $107.87b 18.45%
Midpoint Avg. no poll taken N/A $108.41b 18.36%
High-End Avg. no poll taken N/A $108.96b 18.26%
The Low no poll taken N/A $80b 24.87%
The High no poll taken N/A $145b 13.72%

 

“Knowing the Past for the Future” – A Look at a Decade’s Worth of January 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

 

 

Barclays PLC $1.5b 30yr Senior Unsecured Notes Deal Dashboard

 

Mischler served as an active 1.00% Co-Manager on today’s 30-year tranche of Barclays PLC’s goliath $5 billion 4-part, so this serves as the deal dashboard for the 30-year piece. For my relative value study I looked at the outstanding BACR Senior Unsecured Notes due 8/17/2045 that were T+170 pre-announcement pegging NIC on today’s new 30-year as 20 bps.

 

Investor appetite for the 4-part was simply voracious.  The FRN garnered a $1b book while the 6NC5 And 11NC10 books each hovered at around $4bn.  The 30-year was tops at $4.8b. So a great start of the year for BACR and our IG DCM.

Proceeds from today’s 4-part will be used for general corporate purposes.

 

BACR Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
BACR +210a +195a (+/-5) +190 +190 <20> bps 20 bps 180/178 <10>

 

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

 

BACR  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
BACR $1.5b $4.8b 3.20x

 

Final Pricing – Barclays PLC
BACR $1.5b 4.95% 30yr due 1/20/2047 @ $99.907 to yield 4.956% or T+190

 

Duke Energy Florida LLC 2-part 3s/10s FMBs Deal Dashboard

 

For relative value, Duke Energy Carolinas (Aa2/A) recently brought a 10-year, the DUK 2.95% due 12/01/2026, this past November 14th.  This higher-rated DUK was quoted T+71bp (G+71), versus its T+75 new issue pricing.  Today’s A1/A rated Duke Energy Florida LLC 10-year new issue landed 4 bps back of that, however, it did correspond with the November Carolinas final pricing level. So, looking at it from that angle, concession was flat.  Accounting for a 20 bps 5s/10s curve gets you to +55. Next, factoring in a 10 bps 3s/5s curve lands us at +45 for 3-year fair value inferring a negative 5 bp concession on today’s Duke Florida 3-year.

 

Proceeds will be used to fund capital expenditures for ongoing construction, capital maintenance, to repay $250mm principal of the 5.80% FMBs due 2017 and for general corporate purposes.

 

DUK Issue IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NICs
(bps)
Trading at
the Break
+/-
(bps)
DUK +55a +45a (+/-5) +40 +40 <15> bps <5> 39/38 <1>
DUK +90a +80a (+/-5) +75 +75 <15> bps 0 73/71 <2>

 

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

 

DUK  Issue Tranche Size Final Book
Size
Bid-to-Cover
Rate
DUK $250mm $750mm 3x
DUK $650mm $1.5b 2.31x

 

Final Pricing – Duke Energy Florida LLC
DUK $250mm 1.85% 3yr FMBs due 1/15/2020 @ $99.886 to yield 1.889% or T+40  MWC +7.5

DUK $650mm 3.20% 10yr FMBs due 1/15/2027 @ $99.940 to yield 3.207% or T+75  MWC +15

 

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 day-by-day recap of the five key primary market driver averages for IG Corporates reflecting the last active week of 2016 issuance and the prior six week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
12/12
TUES.
12/13
WED.
12/14
TH.
12/15
FR
12/16
AVERAGES
WEEK 12/26
AVERAGES
WEEK 12/19
AVERAGES
WEEK 12/12
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 N/A 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 N/A N/A 2.41x 3.68x 3.38x 2.99x
Tenors 6 yrs N/A N/A 20 yrs N/A N/A N/A 10.67 yrs 9.21 yrs 10.84 yrs 12.14 yrs
Tranche Sizes $688mm N/A N/A $750mm N/A N/A N/A $708mm $760mm $711mm $929mm
Avg. Spd. Compression
IPTs to Launch
<15.75> bps N/A N/A <20.00> bps N/A N/A 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
Barclays PLC Baa2/BBB FRN 6NC5 750 3mL+equiv 3mL+166a (+/-5) 3mL+162.5 3mL+162.5 BARC-sole
Barclays PLC Baa2/BBB 3.684% 6NC5 1,500 +195a +180a (+/-5) +175 +175 BARC-sole
Barclays PLC Baa2/BBB 4.337% 11NC10 1,250 +210a +195a (+/-5) +190 +190 BARC-sole
Barclays PLC Baa2/BBB 4.95% 1/20/2048 1,500 +210a +195a (+/-5) +190 +190 BARC-sole
BNP Paribas A1/A+ 3.80% 1/10/2024 1,750 +170-175 +160 the # +160 +160 BNP-sole
Credit Agricole SA Baa2/A FRN 1/10/2022 300 3mL+equiv 3mL+equiv 3mL+143 3mL+143 CACIB-sole books
JLMs: CITI/DB/SG/TD/UNI
Credit Agricole SA Baa2/A 3.375% 1/10/2022 1,000 +165a +145-150 +145 +145 CACIB-sole books
JLMs: CITI/DB/SG/TD/UNI
Credit Agricole SA Baa2/A 4.125% 1/10/2027 1,000 +195a +175-180 +175 +175 CACIB-sole
JLMs: CITI/DB/SG/TD/UNI
Daimler Finance N.A. LLC A3/A FRN 1/06/2020 400 3mL+requiv 3mL+equiv 3mL+63 3mL+63 BAML/COBA/JPM/MIZ
Daimler Finance N.A. LLC A3/A 2.30% 1/06/2020 1,000 +95a +85a (+/-2) +83 +83 BAML/COBA/JPM/MIZ
Daimler Finance N.A. LLC A3/A 2.85% 1/06/2022 850 +105a +95a (+/-2) +93 +93 BAML/COBA/JPM/MIZ
Daimler Finance N.A. LLC A3/A 3.45% 1/06/2027 750 +120a +105 the # +105 +105 BAML/COBA/JPM/MIZ
Duke Energy Florida LLC A1/A 1.85% 1/15/2020 250 +55a +45a (+/-5) +40 +40 BAML/SCOT/TD/UBS/WFS
Duke Energy Florida LLC A1/A 3.20% 1/15/2027 650 +90a +80a (+/-5) +75 +75 BAML/SCOT/TD/UBS/WFS
FedEx Corporation Baa2/BBB 3.30% 3/15/2027 450 +110-115 +95a (+/-5) +90a +90 RF/SCOT/STRH/WFS
FedEx Corporation Baa2/BBB 4.40% 1/15/2047 750 +160-165 +145a (+/-5) +140a +140 RF/SCOT/STRH/WFS
John Deere Capital Corp. A2/A FRN 10/15/2018 250 3mL+equiv 3mL+equiv 3mL+27 3mL+27 BAML/CITI/GS
John Deere Capital Corp. A2/A 1.65% 10/15/2018 350 +65a +50a +47 +47 BAML/CITI/GS
John Deere Capital Corp. A2/A 2.65% 1/06/2022 400 +85a +75a (+/-3) +72 +72 BAML/CITI/GS
Principal Life Glbl. Fdg. II A1/A+ 2.15% 1/10/2020 500 +low 80s/+82.5 +75a (+/-3) +72 +72 BARC/CS/DB
Rabobank Nederland NY Aa2/A+ FRN 1/10/2022 500 3mL+equiv 3mL+equiv 3mL+83 3mL+83 CS/GS/JPM/RBC
Rabobank Nederland NY Aa2/A+ 2.75% 1/10/2022 1,000 +100a +87.5a (+/-2.5) +85 +85 CS/GS/JPM/RBC
Santander UK Grp. Hldgs. Baa1/A 3.571% 1/10/2023 1,000 +185a +165a (+/-2) +163 +163 BAML/DB/GS/SANT/WFS
Westpac Banking Corp. Aa2/AA- FRN 1/11/2017 500 3mL+equiv 3mL+equiv 3mL+85 3mL+85 BAML/HSBC
Westpac Banking Corp. Aa2/AA- 2.80% 1/11/2017 1,250 +105a +90a (+/-2) +88 +88 BAML/HSBC

           

Indexes and New Issue Volume

 

Index Open Current Change
IG27 67.585 65.669 <1.916>
HV27 144.05 141.03 <3.02>
VIX 14.04 12.85 <1.19>
S&P 2,239 2.258 19
DOW 19,763 19,882 119
 

USD

 

IG Corporates

 

USD

 

Total IG (+SSA)

DAY: $19.90 bn DAY: $19.90 bn
WTD: $19.90 bn WTD: $19.90 bn
MTD: $19.90 bn MTD: $19.90 bn
YTD: $19.90 bn YTD: $19.90 bn

 

Lipper Report/Fund Flows – Week ending December 28th     

     

  • For the week ended December 29th, Lipper U.S. Fund Flows reported an inflow 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 20.00 bps wider versus their post-Crisis lows!

 

ASSET CLASS 1/03 1/02 12/30 12/29 12/28 12/27 12/23 12/22 12/21 12/20 1-Day Change 10-Day Trend PC
low
IG Avg. 128 130 129 128 128 128 129 129 129 129 <2> <1> 106
“AAA” 70 71 71 70 70 71 71 72 72 72 <1> <2> 50
“AA” 79 80 80 79 79 80 80 80 80 80 <1> <1> 63
“A” 103 104 103 103 103 103 103 103 104 104 <1> <1> 81
“BBB” 164 166 164 163 164 164 164 164 165 165 <2> <1> 142
IG vs. HY 285 292 292 290 287 282 287 288 290 290 <7> <5> 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 26.21 bps wider versus their post-Crisis lows!

 

INDUSTRY 1/03 1/02 12/30 12/29 12/28 12/27 12/23 12/22 12/21 12/20 1-Day Change 10-Day Trend PC
low
Automotive 119 121 118 118 118 119 119 119 119 119 <2> 0 67
Banking 120 120 120 120 120 120 120 121 121 121 0 <1> 98
Basic Industry 168 170 167 166 166 165 166 166 166 166 <2> +2 143
Cap Goods 97 98 97 96 96 96 96 96 97 97 <1> 0 84
Cons. Prod. 105 106 106 105 105 106 106 106 106 106 <1> <1> 85
Energy 161 163 160 160 160 160 161 160 161 161 <2> 0 133
Financials 151 152 151 151 150 149 150 150 151 150 <1> +1 97
Healthcare 113 114 114 113 114 114 114 114 115 115 <1> <2> 83
Industrials 130 130 130 129 130 130 130 130 131 131 0 <1> 109
Insurance 141 143 142 141 141 141 141 141 142 141 <2> 0 120
Leisure 134 132 130 129 129 131 132 132 132 134 +2 0 115
Media 153 155 154 154 154 154 155 155 155 156 <2> <3> 113
Real Estate 141 143 141 140 141 141 141 141 141 141 <2> 0 112
Retail 108 109 109 108 109 109 109 109 110 110 <1> <2> 92
Services 123 123 123 123 123 123 123 124 124 123 0 0 120
Technology 102 105 103 102 104 104 104 105 105 106 <3> <4> 76
Telecom 158 159 159 159 159 159 160 160 161 161 <1> <3> 122
Transportation 127 128 128 127 127 127 127 127 128 128 <1> <1> 109
Utility 129 130 130 129 129 129 129 129 129 130 <1> <1> 104

                                  

New Issue Pipeline

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

IG Corporate Debt Issuance YTD: 1tn aka 1 TRILLION
September 2016      Debt Market Commentary   

Quigley’s Corner 09.13.16 –2016 IG Corporate Debt Issuance (so far)= $1 T-r-i-l-l-ion!

 

Investment Grade Corporate Debt New Issue Re-Cap – Another Broken Record –

Global Market Recap

IG Primary & Secondary Market Talking Points

New Issues Priced

Lipper Report/Fund Flows – Week ending September 7th

IG Credit Spreads (by Rating/Industry)

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

 broken-record-ig-debt-mischler

Yesterday I wrote, “the session finished with only those two deals priced totaling $1.2b with a promise from the guy-in-the-corner that tomorrow WILL be a VERY busy day!” Well tomorrow is today and true to my word we had a blockbuster.  I then wrote, “We are only $20.822bn away from $1 trillion in IG Corporate-only issuance YTD.   Last year we set a new IG Corporate-only record by reaching the $1 trillion mark on Thursday, October 1st(see your incoming “Quigley’s Corner” 9-30-2015). We’d shatter that record by nearly three weeks if it happens tomorrow!

I am happy to report that we reached the $1 trillion dollar mark in IG Corporate-only volume at the earliest stage in any year, shattering last year’s record set on October 1st by 18 business days or 2 weeks and 3 days.

13 IG Corporate issuers printed 26 tranches between them today totaling $22.344b5 SSA issuers added 5 tranches totaling $9.25b for an all-in IG day total of 18 issuers, 31 tranches and $31.594b.

There remain 12 new issues in the imminent pipeline either currently road showing, about to conduct investor meetings/calls or have already wrapped those up.  So, there’s plenty of business to go not counting M&A deals of which Shire looms large.

IG Corporate New Issuance This Week
9/12-9/16
vs. Current
WTD – $23.194b
September 2016 vs. Current
MTD – $75.654b
Low-End Avg. $35.83b 64.73% $115.45b 65.53%
Midpoint Avg. $36.91b 62.84% $116.02b 65.21%
High-End Avg. $38.00b 61.04% $116.59b 64.89%
The Low $30b 77.31% $80b 94.57%
The High $46b 50.42% $150b 50.44%


Here’s how it looked:

Category Totals
# of IG Corporate Issuers 12
# of IG Corporate Tranches 25
Total IG Volume $22.194b
# of SSA Issuers 5
# of SSA Tranches 5
Total SSA Volume $9.25b
Total Amount of All-in Issuers 17
Total Number of All-in Tranches 30
All-in Corps + SSA Amount $31.244b

 

Here’s a look at some other records:

 

o   $31.594 ranks as the 5th highest volume day in history for IG Corps plus SSA.

o   $31.594b ranks as the 2nd busiest all-in issuance day of 2016.

 

Global Market Recap

 

o   U.S Treasuries – Terrible day for USTs Bund’s & Gilts also headed south. JGB’s better.

o   Stocks – U.S. down Friday, up yesterday & down today. Europe red & Asia was mixed.

o   Economic – Nothing of note in the U.S. China & Japan data better. Europe mixed.

o   Currencies – Very good day for the USD & DXY Index.

o   Commodities – Crude oil and commodities, in general, struggled.

o   CDX IG: +3.70 to 76.96

o   CDX HY: +16.91 to 413.84

o   CDX EM: +12.92 to 254.60

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

-Tony Farren

 

IG Primary & Secondary Market Talking Points

 

  • Liberty Property Trust upsized today’s 10yr Senior Unsecured Notes new issue to $400mm from $300mm at the launch and at the tightest side of guidance.
  • Split-rated Aspen Insurance Holdings Ltd. increased its $25 par PerpNC10 non-cumulative Preferred new issue to $225mm from $150mm at the launch and tightest side of guidance.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 24 IG Corporate-only new issues was 16.99 bps.
  • Including today’s Aspen $25 par Preferred, the average spread compression from IPTs thru the launch/final pricing of today’s 25 IG Corporate new issues was 16.54 bps.
  • BAML’s IG Master Index widened 2 bps to +142 versus +140.  +106 represents the post-Crisis low dating back to July 2007.
  • Standard & Poor’s Global Fixed Income Research widened 1 bp to +190 versus +189.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $12.6b on Monday versus $15.7b Friday.
  • The 10-DMA stands at $13.8b.

 

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.

Ron Quigley, Managing Director / Head of Fixed Income Syndicate (more…)

Leap Year Leads In With Record Corporate Debt Deals
March 2016      Debt Market Commentary, Recent Deals   

Quigley’s Corner 02.29.16 –Leap Year Leads In With $17.4b New Issuance of Corporate Debt Deals

Investment Grade Corporate Bond New Issue Re-Cap

Global Market Recap

IG Primary Market Talking Points –Basking in the Sun..Trust w/ 5-year New Issue

New Issues Priced

NICs, Bid-to-Covers, Tenors and Sizes

Lipper Report/Fund Flows

IG Secondary Market Trade Lab

Economic Data Releases

Rates Trading Lab- The detachment of asset classes

Investment Grade Credit Spreads (by Industry/Rating)

New Issue Pipeline

M&A Pipeline

 

Today was leap year with one extra last day before closing out February. It happens once every four years so that over time, seasons don’t collide; so we don’t get snowfall in summer and sunshine on Christmas hundreds of years from now. However, on this winter day in the Northeast it seemed more spring-like and for the IG dollar DCM it seemed more like Christmas.  Again, considering where we came from two short weeks ago, the IG DCM is not only alive and well but……

 

  • ……at $299b of all-in IG Corporate plus SSA issuance, we have just closed the books on what is the highest volume January & February in history.
  • ……February surpassed the low-, mid- and high-point syndicate forecasts for this month (see the Syndicate IG Corporate-only Volume table just below).
  • ……at $129.30b in all-in (IG Corporate plus SSA) new issuance, it ranks as the third highest volume February on record.
  • …….today posted the fifth busiest day of the year with $17.40b priced across 6 issuers and 15 tranches led by Exxon Mobil’s $12b 8-part.

 

Global Market Recap

 

USTs – Winning start to the week. USTs helped by month end buying & weak U.S. stocks.

Stocks – U.S. stocks weak. Europe rallied except DAX. China led Asia lower.

Economic –  Mixed in U.S./Japan. EU CPI not good. Big calendar tonight/tomorrow.

Currencies – Yen very well bid. USD outperformed the Euro but lost vs. the Pound.

Commodities – Strong session for crude oil and gold.

CDX IG: -2.59 to 107.70

CDX HY: -10.45 to 522.14

CDX EM: +1.39 to 367.96

 

IG Primary Market Talking Points – Mischler Basks in the Sun..Trust 5-year New Issue.

 

  • Mischler thanks SunTrust Banks Inc. (NYSE:STI) for including us as a 2.50% active Co-Manager on their 5-year Fixed Rate Senior Notes new issue.  The final STI order book was $2.8b or 2.8-times oversubscribed.  Straight line comparables are the most reliable when approaching relative value. We looked to the outstanding STI 2.50% due 5/01/2019 that was T+140 big (G+138) pre-announcement.  Applying a 20 bps 3s/5s curve takes you to a fair value of T+158. Today’s new issue printed at T+172 for a 15 bps new issue concession.
  • The Charles Schwab Corporation (NYSE:SCHW) increased today’s PerpNC5 $25 preferred, Series “D” to $750mm from $250mm.
  • Hyatt Hotels Corp. (NYSE:H)upsized today’s announced 10-year Senior Notes new issue to $400mm from $300mm and launched it at the tightest side of guidance.
  • Exxon Mobil Corp. (NYSE:XON) dropped today’s 5-year FRN tranche announced 9=part transaction having secured more than sufficient demand in its 5-year fixed tranche.
  • SunTrust Banks Inc. dropped the 5-year FRN from its earlier announced two-part 5-year FXD/FRN, having secured their funding on strong demand for fixed notes.
  • The average spread compression from IPTs thru the launch/final pricing of today’s 15 IG Corporate-only new issues and one IG-rated Preferred was 15.63 bps.

 

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

 

IG Corporate New Issuance This Week
2/29-3/04
vs. Current
WTD: $17.40b
February 2016 vs. Current
MTD – $107.625b
March 2016
Low-End Avg. $32.22b 54.00% $90.9375b 118.35% $115.59b
Midpoint Avg. $32.76b 53.11% $92.1875b 116.75% $116.13b
High-End Avg. $33.30b 52.25% $93.4375b 115.18% $116.67b
The Low $20b 87.00% $60b 179.37% $100b
The High $41b 42.44% $110b 97.84% $150b

 

Have a great evening!

Ron Quigley

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…)

Securities Industry Salutes Mischler Financial Group; “Best Broker-Dealer/Research” Awarded to Veteran-Owned Firm
February 2014      Company News, News and Information   

Securities Industry Salutes Mischler Financial Group; “Best Broker-Dealer/Research” Awarded to Veteran-Owned Firm

Stamford, CONN-February 26, 2014—Mischler Financial Group, the securities industry’s oldest minority investment bank/institutional brokerage owned and operated by service disabled veterans (SDVs) announced its receipt of the 2014 Wall Street Letter Institutional Trading Award for Best Broker-Dealer/Research.

2014_wsl_awards_logo The award was determined by a panel of industry peers organized by global financial news publisher Pageant Media Ltd., who weighed the content offerings from sell-side firms specializing in equities and/or and fixed income insight. The top award to Mischler recognizes the firm’s debt capital markets and fixed income syndicate commentary, produced by Ron Quigley, Managing Director and Head of Fixed Income Syndicate for Mischler. Runner-ups for the Best Broker-Dealer Research category included investment banks Stifel Financial Corp. and Sandler O’Neil + Partners L.P.

Mischler Financial was also nominated for “Best Client Service” and “Best Broker-Dealer/Equities”; categories in which other contenders included global brands Bloomberg LP, Sunguard Financial Systems, Northern Trust Securities and Instinet, among others.

Noted Dean Chamberlain, CEO of Mischler Financial Group, “It’s a real privilege to be acknowledged for excellence by our peers and to be cited for our capabilities, particularly when looking at the roster of globally-recognized Industry leaders who were also nominated.”

This year’s Wall Street Letter Institutional Trading Awards program encompassed 20 categories and more than 100 nominees; winners were announced during a formal event on February 25 in New York City attended by more than 250 financial market professionals representing the industry’s top investment banks, brokerage firms, exchanges and trading system technology concerns.

About Wall Street Letter’s Institutional Trading Awards

The Wall Street Letter 2014 Institutional Trading Awards recognize excellence among providers to the institutional trading industry. Specifically, this event recognizes top brokerage firms, exchanges and financial technology companies for achievements and innovation over the last year. Wall Street Letter is one of 11 mastheads owned by Pageant Media Ltd and is distributed daily to more than 2,500 subscribers.