MarketsMuse Fixed Income update profiles Apple Inc latest bond issuance courtesy of late afternoon desk notes distributed to institutional clients of deal co-manager Mischler Financial Group, the financial industry’s oldest and arguably largest boutique Finra member firm that is owned and operated by Service-Disabled Veterans. MarketsMuse Editors are compelled to add at the outset: The term “Service-Disabled” is a terrible misnomer that the US Dept of Defense should consider changing.
The vast majority of these veterans are ‘disabled’ only within the construct of the certification that is awarded to members of the military who were injured in the line of duty and since relieved from serving in active duty roles. Without discounting the sacrifices that so many veterans have made while serving in our military, sacrifices that have permanently altered their lives and those of their families consequent to truly debilitating injuries sustained, thousands of veterans who were injured in one way or another and who have since returned to the workforce have proven time and again that they are not only fully-able, but they are 110% “mission capable” and “mission ready” whenever provided the opportunity to demonstrate their trained skills and talents within private sector roles.
Moreover, SDVs can be found in leadership roles across the Fortune landscape, including CEO, CFO and corporate treasury positions at the world’s leading companies. We make note of this because the world’s most recognized company, Apple Inc. made the same note of this when appointing Mischler Financial to serve within the ranks of today’s cast of underwriters who helped bring this $8 billion, multi-tranche bond deal to the institutional investor marketplace. Without further ado, below is a short extract from Mischler’s nightly edition of debt capital market commentary, “Quigley’s Corner”
Two mega deals hit the tapes early this morning led by an $8b 7-part from Apple Inc. and a $10b 6-part from Shell International Finance. There were a total of 8 IG Corporate issuers that tapped the dollar DCM to price 20 tranches totaling $21.525b bringing the WTD total to more than 14% more than the syndicate midpoint forecast or $45.125b vs. $39.34b. Meanwhile, the Kingdom of Sweden also added $2.25b from the SSA space with a new 3-year bringing the all-in IG day totals to 9 issuers, 21 tranches and $23.775b.
New Record: Quickest In History to the Half Trillion Dollar Mark!
Today marks a landmark in the history of IG issuance – It is the earliest time in any year that we reached the $500 billion issuance mark. YTD IG Corporate-only volume now stands at $510.797 billion! Investor appetite for the stability of higher rated credits and especially those from Corporate America is beyond robust. Congratulations to Apple for their help in putting us on top with this new and very impressive record! Well-timed and well-priced no doubt! YTD all-in IG issuance (Corporates plus SSA) is now $634.407 billion. Not too shabby folks!
Investor’s Bite the Apple – And Like It Alot! A Look at Today’s 6-Part Demand
| Apple | Final Book Sizes | Bid-to-Cover Rate | Final Pricing | Currently Trading |
| 2yr FRN | 590m | 2.36x | 3mL+5 | issue bid |
| 2yr FXD | 2600m | 3.47x | +30 | 30/28 |
| 5yr FRN | 840m | 1.68x | 3mL+30 | $100.05/ |
| 5yr FXD | 2900m | 2.32x | +45 | 44/42 |
| 7yr FXD | 2900m | 2.32x | +75 | 75/73 |
| 10yr FXD | 5850m | 2.925x | +100 | 99/97 |
| 30yr FXD | 5300m | 2.65x | +140 | 141/139 |
A redacted version of Quigley’s Corner, including a synopsis of the day’s investment grade corporate bond market activity is available via Mischler Financial Group’s website.