Browsing articles tagged with "service-disabled veteran owned broker dealer Archives - Mischler Financial Group"
New York Leads Municipal Debt New Issuance This Week
March 2018      Muni Market   

Municipal Debt New Issue Outlook Week of 03-12-18; New York Top of Muni Issuer List  Mischler Muni Market Update looks back to last week’s new issue and muni fund flow metrics and provides a focused lens on municipal debt new issuance scheduled for this week.  As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

Last week muni volume was about $8.0 billion. This week volume is expected to be about $6.1 billion. The negotiated market is led by $1.0 billion building aid revenue bonds for New York City Transitional Finance Authority, New York. The competitive market is led by $1.33 billion state sales tax bonds issued by Dormitory Authority of the State of New York in 5 bids on Tuesday.

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

municipal-debt-new-issue-calendar

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Mischler Investment Grade Debt Market Comment-Weekend Edition 02-23-18
February 2018      Debt Market Commentary   

Quigley’s Corner 02.23.18 – Investment Grade Debt Market Comment Weekend Edition

Investment Grade New Issue Re-Cap

Today’s IG Primary & Secondary Market Talking Points

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

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

Syndicate IG Corporate-only Volume Estimates for Next Week

The “QC” Geopolitical Risk Monitor

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

2018 Lipper Report/Fund Flows – Week ending February 21st

IG Credit Spreads by Industry

IG Credit Spreads by Rating

New Issue Pipeline

M&A Pipeline Highlights

 

Investment Grade New Issue Re-Cap

Well, there were no new issues from either the IG Corporate or the SSA space today. No harm, no fowl and a welcome relief on a Friday! Next week is shaping up to be a nice one with the average syndicate estimate calling for $26.92b to price.  In conducting my Friday morning survey of the top 25 syndicate desks, not only did all respond again but there seemed to be considerable “chatter” away from them on the street that CVS may be sooner than we think.  That could be a significant volume booster to what’s already a hefty week next week.  53.33% of this week’s IG Corporate new issues tightened with 23.33% flat to new issue spread levels for an overall 79% rate which is a very healthy number.

I have this week’s primary market data download below as well as comments and projections from the sagacious, scholarly, sapient sages of syndicate. That’s right they are all here as my personal guests each and every Friday, for which I am grateful to them all, but hustle up before they leave for their weekends. Some key investment grade debt market comment talking points are to keep an eye, more like an ear, on our new Fed head, Jerome Powell’s first Congressional testimony before the House that was rescheduled this morning for next Tuesday, February 27th from Wednesday.  Otherwise known as the Humphrey-Hawkins hearings, this is the first of two such annual appearances the Fed chief makes each year. He is supposed to follow that up with a repeat performance before the Senate on Thursday assuming they don’t shift that schedule as well. His testimony may well have a strong immediate market impact should he elaborate on interest rates and inflation. Expectations are that he will stay the Fed course and not “rock the boat.”  Great tune by the Hues Corporation BTW. Advice to the newbie, ………don’t rock the boat baby……… don’t tip the boat over!

Here’s a look at MTD IG Corporate new issue volume as measured against syndicate desk estimates:

  • The IG Corporate WTD total is 96.65% of this week’s syndicate midpoint average forecast or $18.15b vs. $18.78b.
  • MTD we’ve priced 67.67% of the syndicate forecast for February IG Corporate new issuance or $60.217b vs. $88.98b.
  • There are now 11 issuers in the IG credit pipeline.

Today’s IG Primary & Secondary Market Talking Points

  • BAML’s IG Master Index was unchanged at +98. (It’s post-Crisis low is +90 set on 2/01).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 0.93.  (+85 is its post-Crisis low set on 1/30).
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +133. (+125 represents its post-Crisis low set 2/02).
  • Investment grade corporate bond trading posted a final Trace count of $20.1b on Thursday versus $19.4b on Wednesday and $19.2b the previous Thursday.
  • The 10-DMA stands at $18.5b. 

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

 

IG Corporate New Issuance This Week
2/19-2/23
vs. Current
WTD – $18.15b
February 2018 vs. Current
MTD – $60.217b
Low-End Avg. $17.74mm 102.31% $88.28b 68.21%
Midpoint Avg. $18.78mm 96.65% $88.98b 67.67%
High-End Avg. $19.82mm 91.57% $89.68b 67.15%
The Low $30mm 60.50% $70b 86.02%
The High $10mm 181.50% $110b 54.74%

 

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

I am happy to announce that the “QC” once again received 100% unanimous participation from all 25 syndicate desks surveyed for today’s “Best & Brightest” edition!  Thank you to all of them. 17 of today’s respondents are in the top 18 of the new 2018 League table including 19 of the top 21 according to today’s Bloomberg’s U.S. IG U.S. Investment Grade Corporate Bond underwriting league table.  The 2018 League table can be found on your terminals at “LEAG” + [GO] after which you select (US Investment Grade Corporates).  The participating desks represent 82.21% of all IG dollar-denominated new issue underwriting as of today’s table share percentage which simply means they are 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 are 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 three consecutive years – 2014, 2015 and 2016 ! 


The Segue: Here is this week’s geopolitical recap:


The PyeongChang Winter Olympics will officially come to and this Sunday February 25th, and you know what that means?  North Korea will invariably return to its pre-Olympic nuclear stride. U.S. financial markets will be focused next week on new Fed head Powell’s testimony before the House next Wednesday followed by the Senate on Thursday. Three rate hikes have been solidly forecast for 2018 with many now touting four and murmurings of the possibility of five! With a massive budget, the largest UST auctions on record this week – $258b – and higher rates to pay off, many are worried that our economy, that is running on all cylinders with low unemployment, means inflation is lurking around the corner.  Equity markets proved resilient this week although we are still witnessing extreme intra-day swings as the “correction” finds itself.  Next Friday, March 2nd Germany‘s Social Democrats (Socialist Party) votes to approve or reject the recent grand coalition deal better referred to as a “marriage of convenience” with Merkel’s CDU/CSU party. A “no” vote means new elections for the Hinterland and further political tension and turmoil in the EU’s keystone state and the world’s third-largest economy. A week from Sunday – March 4th – Italy holds its eagerly anticipated election with many projecting Berlusconi’s Forza Party to win and form a coalition government with other Eurosceptic parties. In a nation with 65 governments in 71 post-WWII years, anything can happen. Italy’s national debt is $2.8trillion and its banking sector holds $220bn of bad loans.  It has the world’s third highest debt-to-GDP ratio. So, fun times ahead folks!


Let’s now take a deep dive into the technical data.  Entering this morning’s Friday session –
 

  • The IG Corporate WTD total stands at $18.15b. We priced $630mm less than the week’s average midpoint estimate of $18.78b or 96.65%.
  • MTD we priced 67.67% of the syndicate projection for February IG Corporates or $60.217b vs. $88.98b.
  • Entering today’s session, the YTD IG Corporate-only volume is $192.602b vs. the $233.533b that priced on Thursday, February 23rd, 2017 or $40.931b (21.25%) less than this time last year.
  • The all-in or IG Corporate plus SSA YTD volume is $267.967b vs. $303.183b on Thursday, February 23rd, 2017 or $35.216b (13.14%) less than the same time year ago total.

 Here are the five key primary market driver averages for the 29 IG Corporate-only deals that priced this week.   

o   NICS:  1.95 bps  

o   Oversubscription Rates: 3.29x

o   Tenors: 11.97 years

o   Tranche Sizes: $626mm

o   Spread Compression from IPTs to the Launch: <16.46> bps 

Here’s how this week’s critical primary market data compares against last week’s numbers: 

  • Week on week, average NICs tightened minutely by 0.67 bps to an average 1.95 bps vs. 2.62 bps across last this week’s 29 IG Corporate-only new issues that displayed relative value.
  • Over subscription or bid-to-cover rates, the measure of demand, increased considerably by 1.33x to an average 3.29x vs. 1.96x. 
  • Average tenors reduced dramatically by 6.19 years to an average 11.97 years vs. 18.16 years.
  • Tranche sizes grew by $127mm to $626mm vs. $499mm.
  • Spread compression from IPTs to the launch/final pricing of this week’s 29 IG Corporate-only new issues tightened by 3.64 bps to <16.46> bps vs. <12.82> bps.
  • Standard and Poor’s Investment Grade Composite Spread was unchanged at +133. 
  • Bloomberg/Barclays US IG Corporate Bond Index OAS thru this morning was unchanged at 0.93 week-on-week.
  • Investment grade corporate bond trading posted a final Trace count of $20.1b on Thursday versus $19.4b on Wednesday and $19.2b the previous Thursday.
  • The 10-DMA stands at $18.5b.
  • The VIX narrowed 0.74 to 18.72 at yesterday’s close vs. last Friday’s 19.46.
  • Week-on-week, BAML’s IG Master Index widened 1 bp to +99 vs. +98.  
  • Spreads across the four IG asset classes widened 0.75 bp week-on-week to 8.00 bps vs. 7.25 bps as measured against its cumulative post-Crisis low.
  • Spreads across the 19 major IG industry sectors widened 0.58 bps to an average 8.95 bps vs. 8.37 bps wider as measured against their average cumulative post-Crisis lows!
  • For the week ended February 21st, Lipper U.S. Fund Flows reported a net inflow of $1.572b into Corporate Investment Grade Funds (2018 YTD net inflow of $20.260b) and a net outflow of $335.066m from High Yield Funds (2018 YTD net outflow of $12.499b).
  • Taking a look at the secondary trading performance of this week’s 29 IG Corporate and 1 SSA new issues, of the 30 deals that printed, X tightened versus NIP for a 53.00% improvement rate, 7 widened  (23.50%), 7 were flat (23.50%).  

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

  • IG Corps: $18.15b
  • All-in IG (Corps + SSA): $20.65b

And now it’s time for today’s question “what are your thoughts and numbers for next week’s IG Corporate new issue volume?”Thank you, 

Ron Quigley, Managing Director, Head of Fixed Income Syndicate

 

The “Best and the Brightest” in Their Own Words

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Bonds Slightly Bruised, But Who Cares? #BanBumpStocks!
February 2018      Debt Market Commentary   

Quigley’s Corner 02-20-18 Corporate Bonds Slightly Bruised as 30yr Nears 3%. More Important: Ban The Bump Stock!

Before I begin the daily drill down, and according to a Bloomberg report written by Jennifer Epstein at 4:08pm ET today, President Donald Trump ordered a ban on gun accessories known as “bump stocks” that allow semiautomatic rifles to be fired more rapidly.”  Here’s something about me you might not know: I am a gun owner. I shoot skeet, trap and target. A number of my compatriots here at the sell-side’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans are equally-responsible gun owners and share a similar interest in skeet, trap and target shooting.  Having said that, the notion of enabling citizens of our free democracy in this day and age with easy access (or any access) to weapons of war is preposterous. We need to stop the gun violence in our schools, in places where we gather to celebrate and places we go to be entertained.  I am not sorry to say to my fellow gun owners that however justified the spirited debate with regard to the 2nd Amendment is and will likely continue to be, we certainly do not need or want bump stocks to make AR-15s automatic. I do not blame violence on gun ownership and [controlled] availability, but there is NO need for machine guns to be in the hands of citizens! It’s about the kids and it’s about our safety to live in a free democracy without fear of being gunned down.  #BanBumpStocks! Mic Drop.  

 

Investment Grade New Issue Re-Cap- Three’s Company!

Today’s IG Primary & Secondary Market Talking Points – Two Deals Get Upsized

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

Global Market Recap

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

New Issues Priced

Indexes and New Issue Volume

Economic Data Releases           

2018 Lipper Report/Fund Flows – Week ending February 14th

The “QC” Geopolitical Risk Monitor     

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline Highlights

Rates Trading Lab

 

Investment Grade New Issue Re-Cap – Three’s Company!

With inflation picking up slightly in a more hawkish rate environment, the U.S. government kicked off its highest volume week of treasury auctions in history this week, an estimated $258bn in new paper. With Trump’s tax plan comes massive funding and as a result, there’s more risk in owning bills, notes and bonds backed by the full faith and guarantee of the U.S. of A.  CT10 is edging closer to a 3.00% yield and so, UST prices have slid while yields have risen making it more expensive for the government to fund itself. There were four to five issuers looking this morning but only Snap-On Inc. which hit the tapes first at 9:36a.m. followed by Vulcan Materials at 9:45 being the only two announced IG Corporate new issues. A third deal materialized from Daimler Finance North America that printed a $750mm tap of its outstanding FRNs due 2/22/2021 but that was not announced. In total 4 to 5 names were looking earlier in the morning with a couple deciding to stand down.

Today the IG dollar DCM hosted 3 issuers across 4 tranches totaling $2.00b.  The SSA space was inactive with one deal announced for BNG for tomorrow’s pricing.

Here’s a look at MTD IG Corporate new issue volume as measured against syndicate desk estimates:

  • The IG Corporate WTD total is 10.65% of this week’s syndicate midpoint average forecast or $2.00b vs. $18.78b.
  • MTD we’ve priced 49.52% of the syndicate forecast for February IG Corporate new issuance or $44.067b vs. $88.98b.
  • There are now 10 issuers in the IG credit pipeline.

Today’s IG Primary & Secondary Market Talking Points – Two Deals Get Upsized!

  • Snap-On Inc. increased its 30-year Senior Notes new issue to $400mm from $350mm at the launch and at the tightest side of guidance.
  • Vulcan Materials Co., upsized today’s 3NCL FRN tranche to $500mm from $300mm at the launch and at the tightest side of guidance brining the two-part deal size to $850mm from $650mm.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 3 IG Corporate-only new issues was <15.00> bps.
  • BAML’s IG Master Index was unchanged at +98. (It’s post-Crisis low is +90 set on 2/01).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 0.93.  (+85 is its post-Crisis low set on 1/30).
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +133. (+125 represents its post-Crisis low set 2/02).
  • Investment grade corporate bond trading posted a final Trace count of $14.2b on Friday versus $19.2b on Thursday and $17.9b the previous Friday.
  • The 10-DMA stands at $19b. 

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

 

IG Corporate New Issuance This Week
2/19-2/23
vs. Current
WTD – $2.00b
February 2018 vs. Current
MTD – $44.067b
Low-End Avg. $17.74mm 11.27% $88.28b 49.92%
Midpoint Avg. $18.78mm 10.65% $88.98b 49.52%
High-End Avg. $19.82mm 10.09% $89.68b 49.14%
The Low $30mm 6.67% $70b 62.95%
The High $10mm 20.00% $110b 40.06%

 

Global Market Recap

 

  • U.S. Treasuries – Another losing day as the UST market could not handle the massive supply.
  • Overseas Bonds – JGB’s, Bunds and Gilts little changed. EU Peripherals unchanged to red.
  • 3mth Libor – Set at 1.90394% the highest yield since December 2008.
  • Stocks – Mixed at 2:30pm: Dow and NASDAQ heading in opposite directions.
  • Overseas Stocks – Asia closed red. China was closed. Europe closed with gains.
  • Economic – No economic data in the U.S. today.
  • Overseas Economic – Japan data solid. Europe data weaker.
  • Currencies – Very good day for the USD and DXY Index.
  • Commodities – Poor day for gold, copper and silver. Small gain for crude oil.
  • CDX IG: +1.95 to 53.33
  • CDX HY: +5.39 to 324.97
  • CDX EM: +3.32 to 123.21
  • VIX: +0.35 to 19.81

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

-Tony Farren

Below is the complete story of today’s investment grade corporate debt market activity as seen from the perch of Mischler Financial Group’s Fixed Income Syndicate perch. Have a great evening!

Ron Quigley, Managing Director and Head of Fixed Income Syndicate

banbumpstocks-ban-bump-stocks-

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

 

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

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
2/12
TUES.
2/13
WED.
2/14
TH.
2/15
FRI.
2/16
AVERAGES
WEEK 2/12
AVERAGES
WEEK 2/05
AVERAGES
WEEK 1/29
AVERAGES
WEEK 1/22
AVERAGES
WEEK 1/15
AVERAGES
WEEK 1/08
New Issue Concessions 3.50 bps 2.10 bps N/A 2.50 bps N/A 2.62 bps 2.67 bps <0.13> bps 0.43 bps 1.73 bps <0.725> bps
Oversubscription Rates 1.70x 2.36x N/A 1.83x N/A 1.96x 4.09x 2.98x 2.02x 2.15x 3.75x
Tenors 11.50 yrs 22.57 yrs N/A 17.62 yrs N/A 18.16 yrs 14.85 yrs 13.80 yrs 5.74 yrs 7.43 yrs 8.12 yrs
Tranche Sizes $600mm $357mm N/A $572mm N/A $499mm $823mm $847mm $623mm $1,137mm $747mm
Avg. Spd. Compression
IPTs to Launch
<14.25> bps <14.10> bps N/A <11.31> bps N/A <12.82> bps <17.02> bps <17.42> bps <13.87> bps <14.11> bps <19.12> bps

 

New Issues Priced

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Municipal Bond New Issues Scheduled Week Ending Feb 23 via Mischler Financial
February 2018      Muni Market   

Municipal Bond New Issues Scheduled Week Ending Feb 23 2018– Mischler Muni Market Update looks back to last week’s metrics and provides a lens on municipal bond new issues scheduled for this week.  As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for this week’s issuance.

Last week muni volume was about $3.9 billion. This holiday-shortened week volume is expected to be about $5.8 billion. The negotiated market is led by $1.4 billion for Los Angeles Unified School District, California. The competitive market is led by $250.0 million taxable general obligation bonds for The City of New York on Thursday.

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

For reading ease, please click on image below

municipal-debt-new-issues

 

During the past two years alone, minority broker-dealer Mischler Financial Group Inc.’s  presence across the primary Primary Debt Capital Markets (DCM) space has included underwriting roles in which Mischler has led, co-managed and/or served as selling group member for more than $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Mischler is also a federally-certified Service-Disabled Veteran-Owned Business Enterprise (SDVOBE).  Mischler Muni Market updates and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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Municipal Debt New Issuance : Toll Roads in Texas and Sewers in South Florida
February 2018      Muni Market   

Municipal Bond New Issuance Scheduled Week of Feb 05 2018– First Week of Feb is Infrastructure Theme: Toll Roads in Texas and Sewers in South Florida need repair and the municipalities of Harris County, TX and Ft. Lauderdale, FL represent the top municipal debt new issuance deals of the week. In both floats, proceeds will go towards repairs and upgrades in those cities.  

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

Last week muni volume was about $3.6 billion. This week volume is expected to be about $3.8 billion. The negotiated market is led by $567.2 million of toll road revenue bonds for Harris County, Texas. The competitive market is led by $180.1 million of water and sewer bonds for the City of Ft. Lauderdale, Florida on Tuesday.

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

For reading ease, please click on image below

municipal-debt-new-issue-calendar-mischler

Since 2014 alone, minority broker-dealer Mischler Financial Group Inc.’s  presence across the primary Primary Debt Capital Markets (DCM) space has included underwriting roles in which Mischler has led, co-managed and/or served as selling group member for more than $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Mischler is also a federally-certified Service-Disabled Veteran-Owned Business Enterprise (SDVOBE).  Mischler Muni Market updates and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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Investment Grade Debt Issuance Day 1 2018 – Mischler Debt Capital Mkt Comment
January 2018      Debt Market Commentary   

Quigley’s Corner 01.02.18 : Investment Grade Debt Issuance Day 1 2018

 

Investment Grade New Issue Re-Cap : First Day of 2018 Finds (5) Issuers | $7.35b Floated

Today’s IG Primary & Secondary Market Talking Points – Setting New Post-Crisis Lows 

Syndicate IG Corporate-only Volume Estimates For January

Global Market Recap

The “QC” Geopolitical Risk Monitor : My Button is Bigger Than Your Button!

Key FOMC Dates for 2018

Hawks vs. Doves: A Look at the FOMC Voting Line-up for 2018 from 2017

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 December 27th

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline Highlights

Rates Trading Lab

Economic Data Releases

Tomorrow’s Calendar 

 

Investment Grade New Issue Re-Cap – Nice Kick-Off to 2018!

First up- a very Happy New Year to you and welcome back to the “QC.”  This first edition of 2018 serves up the usual daily data you’ve come to expect with today’s specials in the form of key U.S. Monetary Policy tables as a handy reminder for you as well as a tracking of Fed Hawkish and Dovish voting members given the shifts and changes of the FOMC Regional Presidents. But first let’s run down the familiar order of all things primary related in our IG dollar DCM and focus on investment grade debt issuance day one of 2018:
Today the IG dollar DCM hosted 5 issuers across 10 tranches totaling $7.35b.  The SSA space was quiet today.

Both the S&P 500 and Nasdaq closed at new all-time highs while the recovery in global manufacturing continued on its upward trajectory.
CDX IG29 was at a new tight as of 4:45pm ET.

Here’s a look at MTD IG Corporate new issue volume as measured against syndicate desk estimates:

  • MTD we’ve priced 5.68% of the syndicate forecast for January IG Corporate new issuance or $7.35b vs. $129.29b.
  • There are now 7 issuers in the IG credit pipeline. 

Today’s IG Primary & Secondary Market Talking Points – Setting New Post-Crisis Lows 

  • Today two of Berkshire Hathaway Energy Company’s four new tranches, the long 10s and long 30s, launched 2 bps tighter than the tightest side of guidance.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 10 IG Corporate-only new issues was <18.20> bps.
  • The IG Average (+98), “AAs” asset class (+55) and “As” (+76) all tied their post-Crisis low.
  • Of the 19 major industry sectors, a total of 7 (36.8%) tied their post-Crisis lows as follows: Banking (+81), Consumer Products (+83), Energy (+131), Industrials (+103), Insurance (+107), Real Estate (+110) and Retail (+91) all set new post-Crisis lows.
  • BAML’s IG Master Index widened 1 bp to +99 from +98.
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 0.93.
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +137 and again tying its post-Crisis low set on Wednesday, December 20th, 2017.
  • Investment grade corporate bond trading posted a final Trace count of $2.4b on Friday versus $5.5b on Thursday and $4.1b the previous Friday.
  • The 10-DMA stands at $8.7b.

 

Syndicate IG Corporate-only Volume Estimates For January

 

IG Corporate New Issuance January 2018 vs. Current
MTD – $7.35b
Low-End Avg. $128.54b 5.72%
Midpoint Avg. $129.29b 5.68%
High-End Avg. $130.04b 5.65%
The Low $100b 7.35%
The High $150b 4.90%

 

Global Market Recap

 

  • U.S. Treasuries – European bonds sell off and rate lock selling sent Treasuries south.
  • Overseas Bonds – JGB’s were closed for holiday. Europe was hit very hard.
  • 3mth Libor – Set at the highest yield (1.69693%) since December 2008.
  • Stocks – The NASDAQ leading U.S. stocks higher at 3:30pm.
  • Overseas Stocks – China & Hang Seng with big rallies. Europe closed mixed.
  • Economic – Markit Manufacturing PMI was the strongest since March 2015.
  • Overseas Economic – Mixed Manufacturing PMI data in Europe but overall very good.
  • Currencies – USD lost ground vs. all of the Big 5.
  • Commodities – CRB, gold and wheat higher. Crude oil had a very small loss.
  • CDX IG: -0.53 to 48.49
  • CDX HY: +0.31 to 306.69
  • CDX EM: -2.42 to 116.95

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

-Tony Farren

 

The “QC” Geopolitical Risk Monitor

Updates are highlighted in BOLD print!

 

Risk Level/Main Factor Geopolitical Risks
HIGH +
“North Korea”
1/02 – Announcing that he’ll send a NOKO team to the Seoul Olympics and desires constructive dialogue with SOKO, dictator Kim Jong Un also announced that “the entire U.S. territory is within the range of a (NOKO) nuclear strike and a nuke button is on *(his) desk” claiming “it is a reality, not a threat.” 12/20 – U.K. successfully tests Sea Ceptor air defense aboard HMS Argyll recently sent to Sea of Japan to join U.S. Naval ships. System shields against multiple airborne targets protecting 500 square mile area.  NOKO pushed further into a corner. 12/05 – U.S. reveals powerful microwave pulses from missiles that can disable NOKO’s electronic missile/launch systems. 12/02 – WH Nat’l. Security Advisor H.R. McMaster says “possibility of war with NOKO increases every day.” 11/28 – South Korea’s Joint Chiefs of Staff verified that North Korea fired a ballistic missile that landed in the Sea of Japan. SOKO Olympics begin Friday 2/2018 thru Sunday 2/25. 11/20 – Pres. Trump announced the U.S. designated NOKO as a state sponsor of terrorism. Warns NOKO that “nuclearization puts its regime in grave danger & increases the peril it faces.”
ELEVATED
“Iranian Protests,”
Trumponomics and Beltway Beginning to Function
1/02 – Highly diverse Iranian protests/civil unrest over economic conditions and political corruption continue for 5th day as President Rouhani warns of an immediate response by the Revolutionary Guards. Worst since 2009. Spread from Mashad to Tehran and 10 other major cities. Authorities warn the death penalty can be enforced for “waging war against God!” Over 20 dead; nearly 500 arrested. U.S. & Britain quick with calls for Iran to address issues raised by protestors. Supreme Leader Ayatollah Ali Khamenei blames “enemies of Iran” and Trump of instigating riots. No impact on oil production……..yet! Important to note that Iran, Syria & Russia stand together on one side with the U.S. KAS and Israel on the other. Syria lays blame on U.S. & Israel.  Watch these developments carefully. Executions in Iran will bring civil unrest and ultimately war.

12/22 – Pres. Trump signed the $1.5 trillion Tax Reform Bill into law as promised before Christmas in one of the GOP’s single greatest legislative victories.

12/21 – The UN General Assembly voted 128-9 (93.4%) with 35 abstains, condemning Pres. Trump’s 12/06 recognition of Jerusalem as Israel’s capital.  

12/19 – Yemeni rockets launched at the royal palace in Riyadh intercepted by Saudi forces. Iranian-backed rebels now targeting population and power centers in Saudi Arabia enough to call an act of war between KAS and Iran.

CAUTION
“Russia, Europe, U.K.
& Terror”
12/27 – Enjoying an 82%+ Russian approval rating, Vladimir Putin announced he will seek a 4th term as President. Serving out a 4th 6-year term would mean 24 years at the top  including P.M. posts. Only Stalin ruled longer (29 years). Putin moved the 2018 election date to 3/18 – the 4th anniversary of Russia’s annexation of Crimea. Putin’s lone opponent Alexey Navalny called for a day of protest on January 28th. People will be watching Navalny in more ways than one.

1/01 – Germany’s Angela Merkel in the midst of worst crisis of her 12yr chancellorship following  11/20 collapse of the “Jamaica Coalition.” Must convince socialist SPD party to join her center-right CDU party. Preliminary talks scheduled for Jan. 3rd with exploratory talks from the 7th-12th. Minority gov’t is an option lest Merkel face new elections. Sources of tension are immigration, taxation & the environment. Right wing has seat in decision-making and wants new elections.

1/01 – UK Parliament votes 309-305 requiring separate Act before BREXIT can be implemented dealing PM Theresa May a major setback in negotiations on the EU divorce bill. The U.K. is targeting an “implementation period” of March and completion by October 2018. U.K. withdrawal from the EU takes place in 3/2019. May began 2017 with a parliamentary majority, led in polls and owned the Conservative party; now, however, Democratic unionists are governing, tension persists in her own party as PM May readies to let go of as many as 5 of her cabinet ministers.

January 2018 Terror Events and Casualties: 3 terrorist attacks; 2 dead; 9 wounded.

Final December 2017 Terror Events and Casualties: 93 terrorist attacks; 430 dead; 733 wounded.

U.S. trade protectionism contrarian to the world coming together on trade. Long term impact?

MODERATE
“China” &
Fractured EU?
12/22 – Three Catalonian pro-independence (secessionist) parties won snap elections called for by Spanish PM Rajoy who invoked never before used laws to oust the regional gov’t. & parliament hoping to reunify Spain.  However, the Republican Left (32), Together for Catalonia (34) and Popular Unity Candidacy (4) parties now control a majority 70 seats in the 135-seat Parliament  Over 3,000 companies and banks moved their HQ from Catalonia. Uncertainty and lack of confidence may well stymie Spain’s recovery from the financial crisis. The new parliament is set to convene on January 17th. Disruptions have cost the region over €1b.

1/02 – Ceremonial President Sergio Mattarella dissolved parliament to pave the way for the upcoming March 4th elections. 5-Star Populist Party leader Luigi Di Maio said he would vote for an ITALEXIT if EU discussions fail. Italians are resistant to the EU’s stringent austerity measures. 5-Star holds a lead in polls. Unemployment is 11%; youth joblessness is 35%. Italy is the EU’s 3rd largest economy and has the world’s 3rd highest debt-to-GDP ratio at 132.5%. It is the EU’s biggest economic risk.

China hard landing: rising corporate debt & slower GDP growth are OECD and IMF concerns. Debt is 250% of GDP. 6% GDP in 2018 will be difficult.

Cybercrime, ransomware, viruses & hacking.

MARGINAL
“2018 US Recession?”
12/13 – FOMC raises rates 0.25% recognizes prolonged inflation miss that is globally low. Sees faster 2018 growth and strong labor market. Economic activity and investment picked up. Low odds of a recession. Concerned about debt. Asset prices characterized as being “elevated.”

Key FOMC Dates for 2018

I thought this might be a helpful and handy table of this year’s key U.S. Monetary Policy meetings and dates.

FOMC Minutes Beige Book FOMC Meetings Chairman’s
Press Conference
January 3, 2018 January 17, 2018 Jan. 30-31, 2018  
February 21 March 7 March 20-21 March 21
April 11 April 18 May 1-2  
May 23 May 30 June 12-13 June 13
July 5 July 18 July 31 – Aug. 1  
August 22 September 12 September 25-26 September 26
October 17 October 24 November 7-8  
November 28 December 5 December 18-19 December 19
January 9, 2019 January 16, 2019 January 29-30, 2019  

Hawks vs. Doves: A Look at the FOMC Voting Line-up for 2018 from 2017

The 2018 voting FOMC Regional President’s will consist of 1 dove (Dudley/retiring in 2018), 3 hawks (Barkin, Mester and Williams) and 1 neutral voter (Bostic). Last year (2017) consisted of 4 doves (Dudley, Evans, Harker and Kashkari) and only 1 hawk (Kaplan).

The Board of Governors will also be more hawkish in 2018 than 2017. Fed Gov. Powell (neutral) is expected to replace Fed Chair Yellen (dove) as Fed Chairman in January. Fed Gov. Quarles (hawkish lean) joined the Board in October.  Marvin Goodfriend (hawkish lean) was nominated to be a Fed Governor by Pres. Trump in November but to date has not been confirmed by the Senate. During 2017 Vice Chair Fischer (hawkish lean) and Fed Gov. Tarullo (dove) left the Board of Governors. Fed Gov. Brainard (dove) remains on the Board. 2018 will start with 3 open Governor seats (Goodfriend’s seat is 1 of the 3) and 2017 started with 2.

Summary: In 2018 out of the 9 voting members (currently 3 open Fed Governor seats) there will be 3 doves, 4 hawks and 2 neutral voters. Last year (2017) there were 7 doves, 2 hawks and 1 neutral voters. The details are below:

New Voters in 2018 Dove/Hawk
Randal Quarles (Governor) Hawkish Lean
Thomas Barkin (Richmond) Hawk
Raphael Bostic (Atlanta) Neutral
Loretta Mester (Cleveland) Hawk
John Williams (San Fran) Hawkish Lean

 

2017 Voters
Not Voting in 2018
Dove/Hawk
Stanley Fischer (Vice-Chair) Hawkish Lean (retired)
Daniel Tarullo (Governor)                     Dove (retired)
Charles Evans (Chicago) Dove
Patrick Harker (Philadelphia) Dovish Lean
Robert Kaplan (Dallas) Hawkish Lean
Neel Kashkari (Minneapolis) Very Dovish

 

2018 Voting Line-Up:

  • Doves (3): Yellen, Brainard & Dudley
  • Hawks (4): Quarles, Barkin, Mester & Williams
  • Neutral (2): Powell & Bostic

Other:

  • Fed Gov. Powell expected to replace Fed Chair Yellen in January.
  • Fed Chair Yellen will retire once Fed Gov. Powell is confirmed as the Fed Chair.
  • NY Fed Pres. Dudley announced he will retire in mid-2018.
  • Marvin Goodfriend has been nominated to the Fed Board but has not yet been confirmed.

-Tony Farren

 

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

 

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

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
12/25
TUES.
12/26
WED.
12/27
Th.
12/28
FRI.
12/29
AVERAGES
WEEK 12/25
AVERAGES
WEEK 12/18
AVERAGES
WEEK 12/11
AVERAGES
WEEK 12/04
AVERAGES
WEEK 11/27
AVERAGES
WEEK 11/20
New Issue Concessions N/A N/A N/A N/A N/A N/A N/A <1.46> bps 1.62 bps 0.51 bps 0.50 bps
Oversubscription Rates N/A N/A N/A N/A N/A N/A N/A 4.64x 3.18x 3.31x 3.29x
Tenors N/A N/A N/A N/A N/A N/A N/A 11.63 yrs 10.69 yrs 11.43 yrs 7.41 yrs
Tranche Sizes N/A N/A N/A N/A N/A N/A N/A $398mm $576mm $648mm $550mm
Avg. Spd. Compression
IPTs to Launch
N/A N/A N/A N/A N/A N/A N/A <18.18> bps <16.34> bps <17.60> bps <18.94> bps

 

New Issues Priced

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Muni Bond New Issuance First Week 2018: Demand Up, Supply Down
January 2018      Muni Market   

Muni Bond New Issuance Scheduled Week of Jan 02 2018  via Mischler Muni Market Update looks back to last week’s metrics and provides view towards municipal bond offerings scheduled for this holiday-shortened week.  Between two back-to-back holiday shortened weeks, the take-away for some is “demand for muni credits is up, but the number of offerings is down..” Good news: NJ Economic Development Authority is open for issuance (see below) As always, the Mischler Muni Market Outlook offers public finance investment managers, institutional investors focused on municipal debt and muni bond market participants a summary of the prior week’s municipal debt activity, including credit spreads and money flows, and a curated view of pending municipal finance offerings tentatively scheduled for this week’s issuance.

Last week muni volume ended up at $1.2 billion. This week volume is expected to be about $757.4 million. The negotiated
market is led by $381.2 million of New Jersey Economic Development Authority State Lease Revenue Bonds. The competitive market does not have any deals over $50 million.

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

For reading ease, please click on image below

 

 

mischler-municipal-bond-new-issuance-schedule

Since 2014 alone, minority broker-dealer Mischler Financial Group Inc.’s  presence across the primary Primary Debt Capital Markets (DCM) space has included underwriting roles in which Mischler has led, co-managed and/or served as selling group member for more than $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Mischler is also a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE).  Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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Tax Reform, Pre-Funding Spurs Muni Debt Offerings; 23b This Week
December 2017      Muni Market   

Municipal Debt Offerings Scheduled Week of Dec 11 2017 via Mischler Muni Market Update.  Tax Reform and Pre-Funding is driving Muni Bond Issuers to ramp up going into year end. The Dec 11 edition of Mischler Muni Market Update looks back to last week’s metrics and provides a lens on municipal bond offerings anticipated for this week.  As always, the Mischler Muni Market Outlook offers public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of the prior week’s municipal debt activity, including credit spreads and money flows, and a curated view of pending municipal finance offerings tentatively scheduled for this week’s issuance.

Last week muni volume was about $13.9 billion from a projected $17.4 billion. This week volume is expected to be $22.9 billion. The negotiated market is led by $1.2 billion of taxable bonds for Partners Healthcare System, Inc. and $795 million for New Jersey Turnpike Authority.

The competitive market is led by $1.8 billion tax-exempt and taxable PIT bonds for New York State Urban Development Corp.(ESD) on Thursday.

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

For reading ease, please click on image below

muni-market-new-issue-calendar-week-121117

Snce 2014 alone, minority broker-dealer Mischler Financial Group Inc.’s  presence across the primary Primary Debt Capital Markets (DCM) space has included underwriting roles in which Mischler has led, co-managed and/or served as selling group member for more than $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Mischler is also a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE).  Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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FOMC Rate Decision Talking Points “Unchanged!”
November 2017      Debt Market Commentary   

Quigley’s Corner 11.01.17  FOMC Rate Decision Talking Points “Unchanged!”

 Investment Grade US Corporate Debt New Issue Re-Cap 

Today’s IG Primary & Secondary Market Talking Points

Global Market Recap

Syndicate IG Corporate-only Volume Estimates For This Week and October

FOMC Rate Decision Talking Points: Unchanged (as Expected)

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

Rates Trading Lab

New Issues Priced

Indexes and New Issue Volume

Lipper Report/Fund Flows – Week ending October 25th

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline Highlights

Economic Data Releases

The “QC” Geopolitical Risk Monitor

 

As you all know, Mischler Financial Group, Inc. is our great nation’s oldest Service Disabled Veteran broker dealer and as such our veteran give-back initiatives are prolific and lay at the core of our shared ethos here at Team Mischler.  I would appreciate it if you could all take a moment to read about our 2017 Veteran’s Day Month Pledge from my CEO Dean Chamberlain just before my evening sign-off below.  It is with great appreciation that Mischler Financial is able to “give-back” the fruits of our labor throughout the year and it is all thanks to you the issuers and accounts who elect to do business with us to address the need for best-in-class capital market services and your own internal diversity/veteran procurement initiatives. It means everything to each of us here at Mischler and the non-profit organizations we support.  Thank you all very much! –RQ 

Investment Grade New Issue Re-Cap

Today the IG dollar DCM hosted 3 issuers across 5 tranches totaling $2.50b.  The SSA space was inactive today.

Here’s how the session’s IG Corporate new issue volume impacted the WTD and MTD syndicate estimates:

  • The IG Corporate WTD total is 83.16% of this week’s syndicate midpoint average forecast or $21.323b vs. $25.64b.
  • MTD we’ve priced 2.59% of the syndicate forecast for October IG Corporate new issuance or $2.50b vs. $96.38b.
  • There are now 7 issuers in the IG credit pipeline.

Today’s IG Primary & Secondary Market Talking Points 

  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 3 IG Corporate-only new issues that displayed price evolution was <27.33> bps.
  • BAML’s IG Master Index widened 1 bp to +101 vs. +100.
  • BAML’s IG Master Index saw  the “AA” tied its post Crisis low of +58 for the third session in a row while the “A” class held its post Crisis low of +78 for the sixth consecutive session.
  • The Transportation industry sector set a new post Crisis low of +104.
  • 2 of the 19 major IG sectors tied their post Crisis lows as follows: Banking (+84)  and Energy (+132).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS widened 1 bp to 0.95 vs. 0.94.
  • Standard & Poor’s Investment Grade Composite Spread tightened 1 bp to +142 vs. +143.  The +140 reached on July 30th 2014 represents the post-Crisis low.
  • Investment grade corporate bond trading posted a final Trace count of $21.1b on Tuesday versus $16.3b on Monday and $23.4b the previous Tuesday.
  • The 10-DMA stands at $18.7b.

Global Market Recap 

  • Treasury November Refunding: More supply in the front end coming in 2018 (February).
  • FOMC Statement – Upgraded growth (solid from moderate) & no change on inflation.
  • U.S. Treasuries – Closed mixed with the curve flattening the story.
  • Overseas Bonds – JGB’s unchanged to better. Bunds little changed & Gilts weaker.
  • 3mth Libor – Set at 1.38483% the highest since January 2009.
  • Stocks – Mixed heading into the close. Gave up big morning gains (reached ATH’s).
  • Overseas Stocks – Nikkei 21 year high. EM 6 year high. Europe 2 year high.
  • Economic – More positive economic data.
  • Overseas Economic – China unchanged, Japan mixed & U.K. data solid.
  • Currencies – USD better bid vs. Euro, PND & Yen but weaker vs. CAD & AUD.
  • Commodities – Crude oil traded at high since January before rolling over. Metals bid.
  • CDX IG: +0.45 to 52.60
  • CDX HY: +0.24 to 310.32
  • CDX EM: +0.55 to 174.91

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

-Tony Farren

 

Syndicate IG Corporate-only Volume Estimates For This Week and October

 

IG Corporate New Issuance This Week
10/30-11/03
vs. Current
WTD – $21.323b
November 2017 vs. Current
MTD – $2.50b
Low-End Avg. $24.74b 86.19% $95.28b 2.62%
Midpoint Avg. $25.64b 83.16% $96.38b 2.59%
High-End Avg. $27.65b 77.12% $97.48b 2.56%
The Low $15b 142.15% $75b 3.33%
The High $35b 60.92% $130b 1.92%

 

fomc-rate-decisionFOMC Rate Decision Talking Points: Unchanged (as Expected) 

Once again rates were left unchanged by the Fed, however there is more color on the $4.5 trillion balance sheet (b/s) unwind. Here’s all you need to know:

Policy:

  • The Fed left rates unchanged in the 1%-1.25% range, voting unanimously to so.
  • The Board left the discount rate unchanged at 1.75%.
  • Expects the economy to evolve in a way warranting gradual rate hikes.

Economy:

  • Economic activity is rising at solid rate despite recent storms.
  • Fed says storms are unlikely to alter the economy’s medium-term course.
  • Repeats risks are roughly balanced, while watching inflation closely.

Employment:

  • The labor market continued to strengthen while unemployment declined.
  • Repeats that market-based inflation compensation gauges are still low.

Inflation:

  • Inflation for items other than food and energy remained soft.
  • Repeats that it sees inflation stabilizing at around 2% in the medium-term

 

The U.S. Federal Open Market Committee November 1st Statement in its Entirety 

Information received since the Federal Open Market Committee met in September indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate despite hurricane-related disruptions. Although the hurricanes caused a drop in payroll employment in September, the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. Gasoline prices rose in the aftermath of the hurricanes, boosting overall inflation in September; however, inflation for items other than food and energy remained soft. On a 12-month basis, both inflation measures have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Hurricane-related disruptions and rebuilding will continue to affect economic activity, employment, and inflation in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term. Consequently, the Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further. Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee’s 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1-1/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

The balance sheet normalization program initiated in October 2017 is proceeding.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Jerome H. Powell; and Randal K. Quarles.

The “QC” Geopolitical Risk Monitor

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Mischler Financial Group 2017 Annual Veterans Day Pledge
November 2017      Company News, Giving Back   

Mischler Financial Group 2017 Annual Veterans Day Pledge Awarded to 

Children of Fallen Patriots Foundation

mischler-veterans-day-children-fallen-patriots-foundationNewport Beach, CA & Stamford, CT –November 1, 2017 —Each year, Mischler Financial Group, Inc., the securities industry’s oldest minority broker-dealer owned and operated by service-disabled veterans pledges a percentage of the firm’s profits to veteran and service-disabled veteran philanthropies as part of its annual Veterans Day charitable initiative. This year, Mischler is proud to announce that Children of Fallen Patriots (CFPF) will be the recipient of the proceeds. Established in 2002, CFPF supports Gold Star families with college scholarships and educational counseling to military children who have lost a parent in the line of duty. Since its inception, CFPF has provided the runway to educational success for young men and women throughout the United States.

Dean Chamberlain, Chief Executive Officer of Mischler Financial Group stated, “Since we opened our doors nearly 25 years ago, our mission has been binary. Our business ethos is to not only serve the marketplace needs of Issuers, state and local governments and institutional investment managers with the highest degree of market proficiency and integrity, but to also share the rewards of our efforts by supporting men and women injured while defending our freedoms and the families of those who made the ultimate sacrifice.” Added Chamberlain, “Thanks to the opportunities presented by our clients, we take great pride in paying forward by supporting carefully selected philanthropies throughout the year. When paying tribute to Veterans Day in particular, we believe CFPF exemplifies Gold Star recognition.”

 

children-fallen-patriots-foundation-mischler-veteransAbout Children of Fallen Patriots Foundation

Nearly 20,000 dependents have been left behind by troops killed in the line of duty over the last 35 years. Many surviving families struggle to make ends meet with 63% of surviving spouses making less than $50,000 per year. CFPF scholarships and financial assistance, funded by loyal donors and corporate sponsors, have assisted nearly 1000 bright and motivated students throughout their undergraduate studies. The vision of CFPF is to ensure that every child of a fallen patriot receives all necessary college funding. The organization’s website is www.fallenpatriots.org

 

About Mischler Financial Group, Inc.

Mischler Financial Group, Inc. is a federally-certified Service-Disabled Veterans Business Enterprise (SDVOSB). We provide capital markets services across primary debt and equity markets, secondary market agency-only execution within the global equities and fixed income markets, and asset management for liquid and alternative investment strategies. Clients of the firm include leading institutional investment managers, Fortune corporate treasurers and municipal officials, public plan sponsors, endowments, and foundations. The firm’s website is located at https://mischlerfinancial.com.

 

 

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