Halister News

(Bloomberg) -- U.S. banks continue to drive investment-grade bond volume with Goldman Sachs (GS) and Morgan Stanley (MS) each in with benchmark 3-part debt offerings.

• These two deals will likely bring total U.S. Bank issuance near $30b for the week
• The movement in rates has favored issuers with the 10y comfortably back below 2.30% after flirting with 2.40% last week
• Two corporates are also on today’s docket, yankee grocer Couche-Tard (ATDBCN) and domestic utility Duquesne Light (DQE). Both issuers engaged in investor outreach earlier this week

Today’s Deals

• Goldman Sachs (GS) $benchmark 3-part
• Morgan Stanley (MS) $benchmark 3-part
• Couche-Tard (ATDBCN) $benchmark 3-part
• Duquesne Light (DQE) $325m WNG 10y
• Province of Alberta (ALTA) $1.5b 5y Global
• Kommunalbanken (KBN) $560m tap FRN due 09/2021

To contact the reporter on this story: Lisa Loray in New York at lloray2@bloomberg.net

(Bloomberg) -- Tuesday’s decision by ratings firm S&P Global Ratings to lift Mexico’s outlook to stable from negative erases the country’s risk of losing its BBB+ investment grade, keeping appetite from funds with an investment-grade mandate for the country’s assets strong, according to Alejandro Padilla, Banorte-Ixe FX and rates strategist.

• Many Mexican risks have begun to dissipate and markets are bullish on the country, but they should enter "wait-and-see" mode in the months leading up to the July 2018 presidential election
• Ratings firms are seeing geopolitical risks contained

To contact the reporter on this story: Isabella Cota in Mexico City at icota@bloomberg.net To contact the editors responsible for this story: Rita Nazareth at rnazareth@bloomberg.net Christiana Sciaudone