Corporate Issuance Roundup: September Surge

With corporate earnings in the rearview mirror, a backlog of corporate debt issuance is accelerating. Total high-grade issuance for the month of August 2023 was only $79.45B -- compares to over $50B estimated for the first week of September alone.

• Partly seasonal, a return from summer market malaise, coupled with expectation the Federal Reserve is at or at least near the end of it's tightening cycle has reignited expectation of heavy supply. Some sales desks estimated last week the start of September would be the largest in years.
• Largely so: (Full monthly breakdown below) with
• Total Sep '22 $105.25B
• Total Sep '21 $215.635B
• Total Sep '20 $207.82B

No issuance announced last Friday, today's expected issuers include:

• Date $MM Issuer (Priced *, Launch #)
• 09/05 $Benchmark Philip Morris 5Y +120a, 7Y +145a, 10Y +175a (issued $5.25B on Feb 13, 2023: $1.25B 3Y +80, $1B 5Y +110, $1.5B 7Y +145, $1.5B 10Y +170)
• 09/05 $Benchmark BHP Billiton 3Y +75a, 5Y +90a, 7Y +100a, 10Y +125a, 30Y +140a (issued $2.75B on Feb 23, 2023: $1B 3Y +55, $1B 5Y +75, $750M 10Y +105)
• 09/05 $Benchmark Volkswagen AM 2Y +100a, 2Y SOFR, 3Y +120a, 5Y +140a, 10Y +175a (issued $3B on May 31, 2022: $500M 2Y SOFR+95, $900M 3Y +125, $1.1B 5Y +155, $500M 7Y +175a)
• 09/05 $1B Nordic Investment Bank WNG +2Y SOFR+22
• 09/05 $500M Mitsubishi WNG 5Y +150a
• 09/05 $Benchmark IADB 10Y SOFR+45
• 09/05 $Benchmark CSX 10Y +115a
• 09/05 $Benchmark WEC Energy 3Y +100a
• 09/05 $Benchmark Unilever 5Y +60a, 10Y +95a
• 09/05 $Benchmark Swedbank 3Y fix/SOFR
• 09/05 $Benchmark JBS 10Y +265a, 30Y +300a
• 09/05 $Benchmar Codelco +10Y +200a, 30Y +220a
• 09/05 $Benchmark Metropolitan Life Global 5Y +120a
• 09/05 $Benchmark UBS 2Y +95a, 2Y SOFR, 5Y +140a
• 09/05 $Benchmark Duke Energy 10Y +165a, 30Y +190a
• 09/05 $Benchmark Southern Co +5Y +125a, +10Y +165a
• 09/05 $Benchmark John Deere 2Y +50a, 3Y +60a, 10Y +100a
• 09/05 $Benchmark MidAmerican Energy 10Y +140a, 31Y +175a
• 09/05 $Benchmark CBA (Commonwealth Bank of Australia) 2Y +75a, 2Y SOFR, 5Y +90a
• 09/05 $Benchmark SMFG Sumitomo Mitsui Fncl GRP 5Y +150a, 10Y +175a
• 09/05 $Benchmark Sumitomo Mitsui Trust 3Y +125a, 3Y SOFR, 5Y +150a
• 09/05 $Benchmark AIIB (Asian Infrastructure Investment Bank) 3Y
• 09/05 $Benchmark ING 4NC3 +160a, 4NC3 SOFR, 11NC10 +200a
• 09/05 $Benchmark DBS 2Y +75a, 2Y SOFR

Historical issuance summary for the last three years: January kicked off 2023 with total of $231.425B high-grade corporate issuance, highest since March '22. Total 2022 high-grade corporate US$ issuance at $1.284T, well off $1.879T in 2021 and record $2.196T for 2020