Morning Commentary: IHS Markit, M&T Bank to tap market; SMBC holds investor calls

By Cristal Cody

Tupelo, Miss., July 19 – In early market activity on Thursday, two high-grade issuers announced new bond offerings, while another kicked off fixed income investor calls.

IHS Markit Ltd. (Ba1/BBB-/BBB) is marketing two tranches of senior notes via bookrunners BofA Merrill Lynch, HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC in a deal registered with the U.S. Securities and Exchange Commission.

M&T Bank Corp. also plans to sell SEC-registered fixed- and floating-rate senior notes.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, JPMorgan and UBS Securities LLC are the bookrunners.

In other market action on Thursday, SMBC Aviation Capital Ltd. (BBB+/A-) will begin to hold fixed income investor calls for a possible deal, a source said.

Citigroup Global Markets Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, JPMorgan, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. are the arrangers.

The Dublin-based global aircraft leasing company last tapped the dollar-denominated primary market on July 12, 2017 with a $500 million offering of notes due July 19, 2022.

Deal volume week to date at more than $27 billion already totals more than the average $25 billion of high-grade supply market sources had forecast.

Bank and financial issuance has dominated primary action with new paper priced over the week from issuers including Mitsubishi UFJ Financial Group, Inc., JPMorgan Chase & Co., Wells Fargo Bank NA, Citigroup Inc., Citibank, NA and Bank of America Corp.

In the secondary market, trading has climbed higher over the week. On Wednesday, $19.86 billion of investment-grade bonds were traded, up from $18.29 billion on Tuesday and $16.36 billion on Monday, according to Trace.

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