PIPELINE: Corporate Bond Roundup: $42.5B Debt to Price Thursday, GS 6Pt Leads
Jan-15 18:55
A total of $42.5B in corporate debt to price today, domestic dealers leading the charge with Goldman Sachs $16B over 6 tranches - the largest since Meta issued $30B back in late October.
- Date $MM Issuer (Priced *, Launch #)
- 01/15 $16B #GS $3.75B 3NC2 +58, $750M 3NC2 SOFR+71, $3.75B 6NC5 +75, $500M 6NC5 SOFR+96, $4.5B 11NC10 +90, $2.75B 21NC20 +80
- 01/15 $8B *Morgan Stanley $2.5B 4NC3 +65, $750M 4NC3 SOFR+80, $3.25B 6NC5 +75, $1.5B 15NC10 +117
- 01/15 $8B #Wells Fargo $2B 4NC3 +58, $500M 4NC3 SOFR+74, $3.5B 11NC10 +80, $2B 21NC20 +70
- 01/15 $3B *IADB 10Y SOFR+41
- 01/15 $1.5B #JBIC $500M WNG 5Y SOFR+44, $1B WNG 10Y SOFR+60
- 01/15 $1.5B *Kuaishou Tech $60M 5Y +50, $900M 10Y +70
- 01/15 $1.25B *OPEC Fund 5Y SOFR+54
- 01/15 $1B *Nordic Inv Bank 5Y SOFR+29
- 01/15 $1B *Saudi Ntnl Bank perpNC5.5 6.15%
- 01/15 $750M #Apollo Debt Solutions 5Y +195
- 01/15 $500M #American National Global Funding 5Y +113
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BOC: Gov Macklem Reiterates That Policy Rates "About Right"
Dec-16 18:48
In a speech Tuesday (link) largely addressed to developments in payments, cash and digital money/stablecoins, BOC Gov Macklem largely repeats many of the key monetary policy messaging he and Governing Council made last week alongside its rate hold.
- With words taken nearly exactly from the December meeting statements, he says "the economy is proving resilient overall. Inflationary pressures continue to be contained despite added costs related to the reconfiguration of trade. Total CPI inflation has been close to the 2% target for more than a year now, and we expect it to remain near the target. In the current situation, Governing Council sees the policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. Uncertainty is of course still very high. If the outlook changes, we are prepared to respond."
- BOC rate pricing was little changed on the session, including post-speech Q&A (which had little in addition to the above), with about 18bp of hikes priced through next October.
- Separately on a more dovish note, MNI's Policy team reported: "Canada's central bank has a case to lower interest rates next year if the economy remains weak, while the hike some investors are betting on won't happen, former deputy Paul Beaudry said Tuesday, speaking during a panel talk for the Bennett Jones law firm."
SOFR OPTIONS: BLOCK: Mar'26 SOFR Broken Call Condors
Dec-16 18:44
- 5,000 SFRH6 96.37/96.43/96.50/96.68 broken call condors, 1.0 net / belly over at 1302:16ET
US TSY OPTIONS: Patently Absurd Low-Delta 30Y Puts Trading Again
Dec-16 18:30
- +67,185 USF6 108 puts at cab-7, new position with open interest of 4,024 coming into the session. The Mar'26 options expire in 10 days - the Friday after Christmas.
- Precedent: On Wednesday, December 3: paper bought 84,361 wk2 30Y 106 puts trade on screen at cab-7
- The 10 handle out-of-the-money option expired last Friday, December 12 - after the FOMC's widely anticipated third consecutive 25bp rate cut last Wednesday.
- Most likely a hedge vs some short term balance sheet risk that corresponded to a rise in 30Y yield to (rough) appr 5.48% from 4.73% yield at the time of trade.
