SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

US banks Goldman Sachs and Morgan Stanley raised $13bn via jumbo deals post their earnings release.

Goldman raised $5.5bn via a three tranche offering:

  • $2.25bn via a 2Y non-call 1Y (2NC1) bond at a yield of 0.481%, or T+35bp, 10bp inside initial guidance of T+45bp area
  • $750mn via a 2Y non-call 1Y (2NC1) floating rate note at SOFR+41bp. The yield on the bond currently is 0.37%.
  • $2.5bn via a 11Y non-call 10Y (11NC10) bond at a yield of 1.992%, or T+90bp, 20bp inside initial guidance of T+110bp area

The bonds are SEC registered and have expected ratings of A3/BBB+/A

Morgan Stanley also raised $7.5bn via a three tranche offering:

  • $3bn via a 3Y non-call 2Y (3NC2) bond at a yield of 0.529%, or T+40bp, 15bp inside initial guidance of T+55bp area
  • $2.5bn via a 11.25Y non-call 10.25Y (11.25NC10.25) bond at a yield of 1.928%, or T+87.5bp, 17.5bp inside initial guidance of T+105bp area
  • $2bn via a 31Y non-call 30Y (31NC30) bond at a yield of 2.802%, or T+97bp, 17.5bp inside initial guidance of T+115bp area

The bonds are SEC registered and have expected ratings of A2/BBB+/A

Goldman’s 5% Perps were up 0.2 to 100.37, yielding 4.78%. Morgan Stanley’s 5.875% Perps were flat at 113.13, yielding 3.3%.

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