US: POLITICAL RISK - Trump Teases Reciprocal Tariff Announcement

New 3-year:

• Spread set earlier at MS+17bps (guidance was MS + 19 bps area)
• HR 105% vs 2.20% Apr-28 Bobl
• Tranche size set earlier at E6bln (guidance was E5bln, MNI expected E5-7bln)
• Books closed in excess of E82bln (inc E5.75bln JLM interest)
• Maturity: 4 July 2028
• Short first coupon | 108 days accrued
• ISIN: EU000A4D5QM6

3.375% Oct-54 Tap:

• Spread set earlier at MS+127bps (guidance was MS + 130 bps area)
• HR 91% vs 2.50% Aug-54 Bund
• Tranche size set earlier at E5bln in line with guidance (MNI expected E4-6bln)
• Books closed in excess of E115bln (inc E5bln JLM interest)
• Highest book for a tranche since 2021
• ISIN: EU000A3K4EY2 (Immediately fungible)

For both:

• Settlement: 21 January 2025 (T+5)
• JLMs: Barclays, BNP Paribas, J.P. Morgan (B&D/DM), LBBW, NatWest Markets
• Timing: Hedge deadline 13:45GMT / 14:45CET. Pricing later today

• The first of President-elect Donald Trump’s Cabinet nominations will face Senate scrutiny today. Defense Secretary nominee Pete Hegseth will receive a grilling from Senate Armed Services Committee Democrats on misconduct allegations, and his lack of managerial experience, but is expected to pass Senate confirmation.  
• The House Ways and Means Committee will gavel in today for a hearing on the extension of Trump’s first-term tax cuts.
• President Biden defended his legacy in his final foreign policy speech of his presidency, arguing that he oversaw the rehabilitation of US multilateralism and enacted policies that will bolster the US’ global standing in the years to come.
• Trump’s team are discussing a gradual approach to tariffs, according to a Bloomberg report.
• A new Conference Board survey found that 71% of US CEOs are planning to modify their supply chains to offset the disruption of tariffs.
• Biden announced yesterday his administration will forgive the student loans of 150,000 more borrowers.
• Cutting edge 'made in America' chips from TSMC's Arizona plant could hit the market as soon as this quarter.
• Russian Foreign Minister Sergei Lavrov told reporters this morning that Russia will “study” Trump’s peace initiatives on Ukraine, “when he takes office."
• Israel and Hamas appear on the verge of a ceasefire-for-hostage deal that will lay the foundations for an armistice in Gaza.
• Chart of the Day: Americans offered a negative assessment of progress made under Biden's presidency. 

Full article: US Daily Brief

• Date $MM Issuer (Priced *, Launch #)
• 01/14 $2.5B #CADES 5Y SOFR+68, upsized from $2B
• 01/14 $3B KFW +5Y +40
• 01/14 $2B IFC 3Y SOFR+29
• 01/13 $Benchmark British Colombia 3Y SOFR+45
• 01/14 $Benchmark BNG Bank 5Y SOFR+48
• 01/14 $Benchmark CAF 5Y SOFR+82
• 01/13 $Benchmark Hyundai 3Y +100a
• $14.65B Priced Monday
  • 01/13 $2.5B *Standard Chartered $1B 4NC3 +105, $500M 4NC3 SOFR+124, $1B 11NC10 +143
  • 01/13 $2B *Deere $1.25B 10Y +68, $750M 30Y +75
  • 01/13 $1.75B *Rabobank $700M 3Y +40, $300M 3Y SOFR+60, $750M 8NC7 +100
  • 01/13 $1.5B *CBA 5Y SOFR+69
  • 01/13 $1.2B *Eastern Energy Gas $700M 10Y +105, $500M 30Y +125
  • 01/13 $1B *Micron 10Y +102
  • 01/13 $1B *EBRD 5.5Y SOFR+42
  • 01/13 $1B *Plains All American 10Y +120
  • 01/13 $800M KHFC $500M 5Y +63, $300M 5Y SOFR+90
  • 01/13 $750M *Ares Strategic 7Y +175
  • 01/13 $650M *Blue Owl Tech Fin 3Y +185
  • 01/13 $500M *Apollo Debt Solutions 7Y +185