CHILE: Goldman Sachs Still See Case For Lower Rates, Despite Hawkish Statement
Jun-19 18:09
- In Goldman Sachs’ assessment, the BCCh’s post-meeting statement contains some hawkish remarks, particularly the acknowledgement that the bulk of the rate cuts have been completed. In addition, the MPC noted the significant impact on inflation expected to come from electricity price hikes, while domestic demand will continue to be supported by higher copper prices. On the dovish side, the MPC noted that non-mining activity was flat in April, while private credit dynamics have weakened.
- After the decision, the risks to GS’ path for the monetary policy rate are skewed to the upside. This is especially true if higher electricity tariffs have a significant impact on inflation in 2025 as the MPC suggests.
- Overall, the economy has resolved its large macroeconomic imbalances, the output gap has narrowed, and inflation expectations are well anchored, which still argues in favour of lower policy rates going forward, in GS’ view. A slower convergence of inflation to target, however, could slow down the pace of monetary policy normalisation in the near term.
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PIPELINE: $3.25B Comcast 3Pt Launched
May-20 17:58
Total of $14.5B corporate debt has issued Monday, Comcast 3pt leads:
- Date $MM Issuer (Priced *, Launch #)
- 5/20 $3.25B #Comcast $750M 5Y +65, $1.3B 10Y +90, $1.2B 30Y +110
- 5/20 $2.6B #Elevance Health $600M 5Y +70, $1B 10Y +95, $1B 30Y +110
- 5/20 $2.6B #UPS $900M 10Y +72, $1.1B 30Y +92, $600M 40Y +105
- 5/20 $1.25B #PayPal $850M 10Y +80, 00M $30Y +100
- 5/20 $1.2B #Entergy 30.5NC5.5, 7.125%
- 5/20 $1B #Handelsbanken $600M 3Y +55, $400M 3Y SOFR+66
- 5/20 $850M #AEP Texas $500M 5Y +100, $350M 10Y +130
- 5/20 $600M #Northwestern Mutual 7Y +73
- 5/20 $600M #Nstar Electric 10Y +98
- 5/20 $550M #F&G Annuities 5Y +210
- 5/20 $500M California Resources 5NC2
- 5/20 $500M Zebra Tech 8NC3
US: FED Reverse Repo Operation
May-20 17:52
- RRP usage climbs to $489.728B from $449.373B prior; number of counterparties 75. Compares to $327.066B on Monday, April 15 -- the lowest level since mid-May 2021.
NY Federal Reserve/MNI
PIPELINE: $2.6B UPS 3Pt Launched
May-20 17:38
$6.75B has launched so far today, but still waiting for Comcast, Paypal and a handful of smaller issues.
- Date $MM Issuer (Priced *, Launch #)
- 5/20 $2.6B #UPS $900M 10Y +72, $1.1B 30Y +92, $600M 40Y +105
- 5/20 $1.2B #Entergy 30.5NC5.5, 7.125%
- 5/20 $1B #Handelsbanken $600M 3Y +55, $400M 3Y SOFR+66
- 5/20 $850M #AEP Texas $500M 5Y +100, $350M 10Y +130
- 5/20 $Benchmark PayPal 10Y +80, 30Y +100
- 5/20 $Benchmark Northwestern Mutual 7Y +73
- 5/20 $Benchmark Comcast 5Y +65, 10Y +90, 30Y +10
- 5/20 $Benchmark Elevance Health 5Y +70, 10Y +95, 30Y +110
- 5/20 $600M #Nstar Electric 10Y +98
- 5/20 $550M #F&G Annuities 5Y +210
- 5/20 $500M California Resources 5NC2
- 5/20 $500M Zebra Tech 8NC3
