4HESEûLATE
CYCLEû-!ûDEALSûAREûHARDERûTOû
execute because there is not a clear path to
REVENUEûSYNERGIESûTHATûWILLûDRIVEûMOREûSALES û
ANDûTHEûPRESSUREûOFûALLûTHISûDEBTû
ûESPECIALLYû
INûTHEû4RIPLEû"ûSPACEû
ûISûSTARTINGûTOûWEIGHûONû
the market.
“There are 20 or 25 of these scenarios
where companies are lagging behind the
DELEVERAGINGûPLANSûTHATûTHEYûWEREûPLANNINGû
TOûDO ûANDûTHATûGROUPûCOULDûCONTINUEûTOûGROWû
IFûYOUREûTALKINGûABOUTû-! ûWHEREûITSûHARDû
TOûSEEûWHEREûYOUûCANûEXTRACTûTHEûVALUE vû
Shoup said.
BANKS SIDELINED
!FTERûEARNINGS ûBIGûBANKSûWEREûEXPECTEDûTOû
HITûTHEûMARKET ûBUTûINSTEADûSTAYEDûONûTHEû
SIDELINESûBECAUSEûOFûWILDûMARKETûVOLATILITYû
The banks could still come to market this
QUARTERûIFûAûWINDOWûOPENSûFORûTHEM.
4HEREûISûAûHEALTHYû53BNûOFûRElNANCINGû
needs expected from the banks and Shoup
EXPECTSûTHEYûWILLûCOMEûTOûMARKETûWHENû
THEREûISûAûMOMENTûOFûSTABILITYû"UT ûFORûNOW û
THEYûCANûAFFORDûTOûSITûANDûWAIT
3TILL û)'ûSPREADSûWIDENEDûBPûINû/CTOBERû
TOûSTANDûBPûWIDERûONûTHEûYEAR
!DDITIONALLY ûEXCESSûRETURNûISûDOWNûû
ANDûTOTALûRETURNûISûDOWNûûONûTHEûYEAR ûANDû
ECONOMICûANDûPOLITICALûUNCERTAINTYûAREû
UNLIKELYûTOûLIGHTENûUP
h0EOPLEûHAVEûTOûHAVEûSOMEûSOUL
SEARCHINGû
DISCUSSIONSûABOUTûWHATûTHEIRûEXPOSURESûARE vû
Shoup said.
h%SPECIALLYûIFûTHEYûBELIEVEûTHISûIDEAûTHATû
NEXTûYEARûWEREûGOINGûTOûSEEûPROlTûGROWTHû
SLOWûMEANINGFULLYûANDûPERHAPSûGETûVERYû
WEAKûTOWARDSûTHEûENDûOFûNEXTûYEARûASûTHEû
STIMULUSûEFFECTSûWEARûOFFv
CORNING BRINGS LONG DURATION TO
HIGH-GRADE PRIMARY
Materials science giant CORNING came to the
INVESTMENT
GRADEûBONDûMARKETûONû4UESDAYû
WITHû
YEARûANDû
YEARûNOTES ûHOPINGûTOûSEIZEû
ONûINVESTORûDEMANDûFORûMOREûTECHûSUPPLY
But neither tranche moved at all in
PRICINGûFROMû)04S ûWHICHûWEREû4REASURIESû
PLUSûBPûONûTHEû
YEARûANDûBPûONûTHEû
YEARû#ORNINGûISûRATEDû"AA"""
&EWERûTHANûûHIGH
GRADEûDEALSûWITHûAû
YEARû
MATURITYûHAVEûPRICEDûINûTHEû53ûDOLLARûMARKETû
OVERûTHEûPASTûûYEARS ûACCORDINGûTOû)&2ûDATA
h9OUREûTAKINGûDURATIONûRISKûONûANYû
COMPANYûWHENûYOUREûGOINGûOUTûûYEARS vû
SAIDû*ORDANû#HALlN ûSENIORûTECHNOLOGYû
ANALYSTûATûRESEARCHûlRMû#REDIT3IGHTSûh"UTû)û
feel more comfortable with Corning than its
PEERSv
(EûNOTEDûSTRONGûFUNDAMENTALS ûAû
DIVERSIlEDûPORTFOLIO ûGROWTHûOPPORTUNITIESû
INûTHEûDISPLAYûBUSINESSûANDû#ORNINGSû
competitive advantage as a leader in the
space.
CreditSights expects Corning’s gross
leverage will grow to as much as 2.1x
COMPAREDûWITHûXûINûTHEûTHIRDûQUARTER û
WHICHûKEEPSûDEBTûWITHINûTHEûCOMPANYSû
planned range.
h.OTûONLYûAREû4REASURIESûATûHISTORICALLYû
LOWûLEVELSûBUTû#ORNINGûSPREADSûAREûRELATIVELYû
TIGHTûASûWELL vû#HALlNûSAIDh3OûTHISûISûAûGOODûOPPORTUNITYûFORûTHEMûTOû
LOCKûINûLOWûINTERESTûRATESv
(EûSAIDûBONDûSUPPLYûFROMûTHEûTECHûSECTORû
HASûBEENûCONSTRAINED ûASûTAXûREFORMSûHAVEû
allowed companies to repatriate overseas cash- and minimise their need to raise fresh debt.
One investor said: “The credit market
continues to be one where issuers look for
ADVANTAGEOUSûFUNDING ûSOûTHEYûHAVEûTOû
gauge market sentiment.
“The market remains open for business –
ANDûTHEûISSUERSûKNOWûTHATv
S&P CUTS IBM RATING ONE NOTCH ON
ANNOUNCED RED HAT ACQUISITION30ûDOWNGRADEDûINTERNATIONAL BUSINESS
MACHINESû)"- ûTOû!ûFROMû! ûFOLLOWINGûTHEû
ANNOUNCEDû53BNûACQUISITIONûOFûOPENû
source software solutions provider RED HAT.
-OODYSûALSOûPLACEDûTHEûTECHNOLOGYû
COMPANYSû!ûRATINGûUNDERûREVIEWûFORû
downgrade following the announcement.
30ûEXPECTSûTHEûACQUISITIONûWILLûBEûFUNDEDû
through a combination of cash on hand and
NEWûDEBTûISSUANCE ûWHICHûPUSHEDûBONDSû
wider.ALL SWISS FRANC BONDS EXCLUDING
SECURITISATIONS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues SFr(m) (%)
1 Credit Suisse 115 12,030.84 28.3
2 UBS 105 11,910.02 28.0
3 ZKB 48 4,642.26 10.9
4 Verband Schweizerischer 12 4,259.71 10.0
5 Raiffeisen Schweiz 33 2,688.53 6.3
6 BNP Paribas 17 1,677.78 3.9
7 Deutsche Bank 13 1,571.19 3.7
8 Commerzbank 10 799.34 1.9
9 HSBC 7 735.63 1.7
10 Basler KB 4 392.00 0.9
Total 208 42,502.61
Including preferreds. Excluding equity-related debt.
Source: Refinitiv SDC code: K06bALL INTERNATIONAL STERLING BONDS
EXCLUDING SECURITISATIONS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues £(m) (%)
1 HSBC 95 14,427.15 14.2
2 NatWest Markets 87 11,694.48 11.5
3 Barclays 69 9,090.52 9.0
4 RBC 60 8,133.52 8.0
5 Lloyds Bank 47 7,314.93 7.2
6 JP Morgan 25 5,256.91 5.2
7 Nomura 34 5,034.24 5.0
8 BAML 30 4,687.52 4.6
9 Deutsche Bank 25 4,192.26 4.1
10 TD Securities 30 3,841.99 3.8
Total 268 101,347.11
Including preferreds. Excluding equity-related debt.
Source: Refinitiv SDC code: K05aALL INV-GRADE US CORPORATE BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 74 15,783.40 11.7
2 JP Morgan 67 13,893.45 10.3
3 Morgan Stanley 47 10,906.44 8.1
4 Barclays 46 9,509.63 7.0
5 Citigroup 45 8,489.80 6.3
6 Goldman Sachs 34 8,443.07 6.2
7 Wells Fargo 59 8,407.23 6.2
8 Mizuho 35 7,492.18 5.5
9 MUFG 28 4,683.17 3.5
10 BNP Paribas 20 4,445.45 3.3
Total 192 135,368.53
Excluding equity-related debt, ABS/MBS, all foreign issues, global issues and non corporates.
Source: Refinitiv SDC code: F6a
ALL US INVESTMENT GRADE CORPORATE DEBT
(EXCLUDING SOLE SELF FUNDED DEALS)
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 337 107,070.95 11.2
2 JP Morgan 363 103,356.64 10.8
3 Citigroup 312 84,721.73 8.8
4 Goldman Sachs 234 75,651.35 7.9
5 Morgan Stanley 276 73,750.96 7.7
6 Barclays 178 60,925.02 6.4
7 Wells Fargo 221 58,285.11 6.1
8 HSBC 112 36,007.52 3.8
9 RBC 131 32,043.65 3.3
10 Mizuho 120 30,431.25 3.2
Total 872 958,099.57Source: Refinitiv SDC code: F09aALL CORPORATE BONDS IN EUROS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)
1 BNP Paribas 143 23,669.38 8.4
2 SG 114 20,790.65 7.4
3 Deutsche Bank 110 20,593.90 7.3
4 HSBC 106 15,114.61 5.4
5 JP Morgan 93 14,726.29 5.2
6 Credit Agricole 87 14,567.64 5.2
7 UniCredit 82 14,053.73 5.0
8 Goldman Sachs 60 13,683.36 4.9
9 ING 64 12,066.51 4.3
10 BAML 65 11,747.71 4.2
Total 434 281,954.44
Excluding equity-related debt. FIGs, ABS/MBS.Source: Refinitiv SDC code: N8