G–250 USD New Issue Supply and Trade Indicators for May 12, 2025
New European Supply May 12, 2025
HSBC (HSBC,Baa1/BBB ) T2
UBS Switzerland (UBS, AAA) 5Y Covered
Volkswagen (VW, Baa3, BBB-) PerpNC5.5
Orange (ORAFP, Baa1/BBB+) 4Y Fixed
Anheuser Inbev (ABIBB, A3/A) 8Y Fixed, 13Y Fixed, 20Y Fixed
€ 7 Bil total
New US Supply May 12, 2025
Southern California Gas (SRE, Aa3/A)
• 10Y IPT 135a (SRE 5.05 09/01/34 ($600mm traded 100/10Y Thursday) Not certain new bonds trade inside the old. 110 would be final attractive point.
• 30Y IPT 150 – 155 (SRE 6.35 11/15/52($600mm) traded 130/30 Thursday) Model attractive point is 139/30Y
SRE is not delivering
Commonwealth Edison (EXC, A1/A)
• 1st Mortgage 30Y fixed – IPT 135 – attractive +114/30Y
Commonwealth Edison is not de-levering
ENI (ENIIM, Baa1/A-)
• $Benchmark 10Y Fixed (May 19, 2035) IPT +175 Area – attractive to 143/10Y
ENI is delevering
Toyota Motor Credit (TOYOTA, A1/ A)
• 2Y Fixed IPT +80/2Y – attractive to 46/2Y
• 2Y FRN – SOFR Equiv - attractive to DM 55
• 5Y Fixed IPT +100/5Y - attractive to 70/5Y
Toyota is delevering
US Bank (USB, A2/A)
• USD 3NC2 Fxd-to-FRN IPT +100 Area – Attractive to 68/2Y
• USD 3NC2 FRN (May 15, 2028) IPT SOFR Equiv – Not going to be attractive
• USD 6NC5 Fxd-to-FRN (May 15, 2031) IPT +125 Area – Attractive to 104/5Y
US Bank is not delevering
Ally Financial (ALLY , Baa3/BBB-)
• $Benchmark 4NC3 Fxd-to-FRN (May 15, 2029) IPT +210 Area attractive to 153/3Y
Ally Financial is not delevering
Caterpillar Finance (CAT, A2/A)
• USD 10Y Fixed (May 15, 2035) IPT +110 Area – attractive to 83/10Y
• USD 30Y Fixed (May 15, 2055) IPT +120 Area – attractive to 94/5Y
Caterpillar Finance is not delevering
Carnival (CCL, B1/BB+)
• $1b 6NCL Fixed (refi's the 7.625% 2026) – Attractive to 6.625%
Carnival is delevering
United Parcel Service (UPS, A2/A)
• $Benchmark Long 5Y Fixed (Oct. 15, 2030) IPT +87.5 Area – attractive to 55/5Y
• $Benchmark 10Y Fixed (May 14, 2035) IPT +112.5 Area – attractive to 77/10Y
• $Benchmark 30Y Fixed (May 14, 2055) IPT +137.5 Area – attractive to 115/30Y
• $Benchmark 40Y Fixed (May 14, 2065) IPT +150 Area – attractive to 124/30Y
UPS is not delevering
Disclaimer - This report is not intended as, and does not constitute an offer, or a solicitation to buy or sell any securities or financial instruments. All data, levels, opinions, and representations herein are provided for informational purposes only and should not be relied upon for making investment decisions. Past performance is not indicative of future results. The authors of this report assume no liability for losses or damages arising from the use of this information. Investors should consult with a qualified financial advisor before making any investment decisions. The information in this report is based on sources believed to be reliable, but no guarantee is made as to its accuracy, completeness, or timeliness.