NEW ISSUE “Florida Power & Light” may Sell $500m 10Y First Mortgage Bonds

“Florida Power & Light” may Sell $500m 10Y First Mortgage Bonds

May Price Today

Expected Ratings: Aa3 / A

Will Not Grow

Terms aren’t set yet



**SIRIUS Xm Radio Inc 4.625% May 15 2023**


Sirius Satellite Radio is building a digital radio system that will broadcast up to 100 channels of music and entertainment programming to motorist throughout the continental United States.  The company plans to offer channels of commercial-free music and channels of news, sports and entertainment programming for a monthly subscription fee.

  • Bonds are Rated:     BB by (S&P) B1 by (DBRS)
  • Price:     101.75
  • YTM:     4.41%
  • Call Dates :     05/15/2018 at 102.313 and 05/15/2019 at 101.542 and 05/15/2020 at 100.771
  • Issue Size:     500MM




How Global Bond Markets are reacting!

Highlights for May 

G10 Macro

Global reflation remains in full swing. G-4 central banks are ramping up balance sheet expansion and even the ECB is being dragged to cut rates as economic conditions at the core of Europe deteriorate. Fiscal austerity has become the economic equivalent of kryptonite and central banks are being forced to accommodate those policies.

G10 Rates

The growing tide of global QE is no doubt helping to suppress yields, but the disconnect between global bond yields and the economy still strikes as very odd.

G10 FX

The US Dollar outlook. The US economy is growing, the US trade imbalance is improving and the long-term secular bear USD trend is very mature.

EMFX & Rates

EMFX and yields to be driven by the balance of monetary easing, bias for weak currencies, and global QE inflows.


Industrial base and precious metals and oil could trade higher in the coming months, as prices are at or near key support levels.

What Has Changed

Global growth slowdown, declining risk appetite and softening inflation have led to central banks taking a less hawkish stance. The ECB has cut the refi rate and global bonds yields are lower. Weaker global growth and oversupply led to sharp industrial commodity correction. Precious metals suffered a technical rout and loss of spec interest.

What can Change

Year-end G10 yields mostly unchanged but lower near-term path. Look for a stronger USD against most G10/EM FX and more easing from EM central banks and less hikes in Brazil. Lower commodity forecasts, but dovish central banks, prices near key supports, and poor but not grim fundamentals could help short term prices for metals and oil.

Eric Green, Andrew Kelvin, Shaun Osborn, Cristian Maggio



Announcing: International Bank for Reconstruction and Development (IBRD) BONDS in Brazilian Currency

The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 188 member countries.
IBRD 6.03% Due 5/27/16 Priced at 99.75 = 6.12% YTM (CRNCY BRL)


 Wells Fargo Bank

15YNC – 5Y Step Up Certificate of Deposit

Issuer:                   Wells Fargo Bank, N. A.

Price to Public:           100.00

Strike Date:          April 16, 2013
Issue Date:           April 19, 2013
Maturity Date:        April 19, 2028  (approximately 15 years)
Call Provision:       April 19, 2018, quarterly thereafter
Deposit Amount:       $1,000 minimum with $1,000 increments thereafter

Coupon:     Y1-5     @  2.25%
Y6-9     @  2.75%
Y10-11   @  3.50%
Y11-13   @  4.25%
Y14-15   @  7.00%

Coupon Periods:  Paid quarterly, Act/365

YTM:              3.27%

FDIC Insurance   $250,000.00

“New Issue” KfW Bankengruppe

Announcement in “TRY”  New Turkish Lira

KfW Bankengruppe

Issuer:  KFW; Explicit German Guarantee; AAA/Aaa
Size:  TRY[275]million; tap size TRY[50]million
Coupon: 5.00% annual; ACT/ACT (ICMA); short 1st
Maturity: 4th August 2016

“New Issue” International Bank for Reconstruction & Development


*** Increase IBRD 7% April 2015 BRL settles in US$$***

Issuer:  International Bank for Reconstruction & Development
Rating:  S&P AAA / Moody’s: Aaa
Tap Size:  BRL 40m minimum, bringing total size to BRL450million
Settlement:  19 March 2013 (340 days accrued)
Maturity:  13 April 2015
Coupon:  7.00% Annual Act/Act

The Credit Score

Morning Comments


Softer economic data out of China, together with lingering concerns over Europe are
pushing investors towards risk aversion this morning. Indeed, two Chinese economic
releases for February missed consensus estimates: Retail Sales progressed 12.3%,
compared with a 15% estimate, and Industrial Production climbed 9.9%, versus a
10.6% consensus. Investors are selling off equities on the news (-0.5% on average),
while commodities are stubbornly holding their own. Friday, after the close, rating
agency Fitch cut Italy’s credit rating one notch to BBB+ with a negative outlook, citing
that the inconclusive elections have produced political paralysis that threatens the
country’s ability to maneuver in a European recession. Also, EU leaders are preparing
for a March 14-15 summit to discuss the financial rescue terms for Cyprus. Bond yields
in Canada and the US are nonetheless still unchanged to start the session.

Corporate Credit

New week, same story, for Canadian corporate spreads. Spreads of corporate issuers
in Canada are still trading rather aimlessly, after the massive early-year tightening that
we witnessed in January. Once again, only Canadian banking spreads (senior and
subordinated) are noticeably bucking the trend by slowly and constantly tightening.
Watch for corporate supply to dictate the next trend in corporate spreads.

Risk Aversion and Central Bank Frenzy

Risk Aversion and Central Bank Frenzy 

Rarely do we see a week characterized by five interest rate decisions from major EM central banks (Poland, Brazil, Indonesia, Malaysia and Mexico), in addition to the five G10 central banks meeting this week as well. We try to keep things easy and simple and forecast rates unchanged across the board.

External factors drove a trend for weaker EM FX last week, which was only resisted by the most resilient currencies – TRY, IDR and MYR – which returned up to 0.4% vs. USD. All others traded weaker, with EMEA FX again recording the largest losses.

Cristian Maggio

New Issue


Issuer: Pitney Bowes Inc.(ticker: PBI)

Expected Ratings: Baa2 / BBB (Stable /Stable)

Security: Senior Notes

Size: $150mm (6mm $25 par securities)

Price Guidance: 6.75% area

Maturity: March __, 2043

Interest Payment: Quarterly on March, June,

September, and December beginning 6/__/13.

Fixed for life Optional Redemption: March XX, 2018 at par; prior to that, there will be a make whole call

Denominations: $25 Par

Use of Proceeds: To purchase a portion of the company’s outstanding debt securities including the 4.875% notes due 2014, the 5% notes due 2015, and the 4.75% notes due 2016 and to pay related costs and expenses. Any remainder of net proceeds will be used for GCP. (See Red) QDI/DRD: NO Change of Control: 101% (See Red)

Expected Listing: NYSE

Settlement: T+7