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Commentary & Deal Flow

CFR CREDIT CLOSE: Record Dog Days WK 1! August Tops $100bn!

IGC US Market: Commentary - GeneralIGC US Market: Commentary - CloseIGC European Market: Commentary - CloseIGC European Market: Commentary - General

CFR CREDIT CLOSE: Record Dog Days WK 1! August Tops $100bn!

   

Today’s 3 deals for $3.600bn was more than enough for August to top $100bn (currently $101.700bn), and also moved the week into the top spot on the Largest Dog Days WK 1 table.

 

LARGEST WK 1 DOG DAYS VOLUME


YEAR

WK ENDING

VOLUME

#DEAL

2025

8/22/2025 WTD

$26.600

22

2007

8/24/2007

$23.275

20

2024

8/23/2024

$22.650

14

2020

8/28/2020

$18.005

16

2002

8/23/2002

$15.735

27

AUG 2025 GOAL POST



AUG 2025 MTD

$101,700

$ NEED TO HIT

AUG 2025 AVG ESTIMATE

$88,704

($12,996)

AUG 2025 HIGH ESTIMATE

$100,000

($1,700)

AUG 2025 LOW ESTIMATE

$67,500

($34,200)

AUG 3YR AVG

$96,998

($4,702)

 AUG 5YR AVG

$104,698

$2,998

 AUG 2024 TTL

$108,595

$6,895

AUG RECORD(2020)

$141,483

$39,783

We’ll now see if there’s enough left in Aug 2025 to top 2024’s $108.595bn final total.

We’re not sure what – if anything – is on tap for Thursday.  (We were getting a lot of “done for the week” feedback today). 

And the 3yr and 5yr averages for Dog Days Week 2 don’t seem to point to another $6.895bn.

DOG DAYS WEEK 2

 

WK ENDING

VOLUME

DEALS

 

8/30/2024

$2.050

3

9/1/2023

$1.000

1

9/2/2022

$0.000

0

9/3/2021

$3.750

3

9/4/2020

$5.420

9

3YR AVG:

$1.017

1.3

5YR AVG:

$2.444

3.2

But this month and week have certainly surprised to the upside – so maybe.


On the notables front today:


 NDAFH’s 5yr at T+50bp ranked No. 3 on the 5yr Lowest Sr Pfd Spread Table:

LOWEST SR PFD SPREADS 2015-2025






DATE

Ticker

MDY

SP

Size

Mat

Final

Coupon

Spread

8/31/2021

SEB

Aa2

A+

$750

5

9/9/2026

1.20%

45

11/9/2021

SWEDA

Aa3

A+

$1,000

5

11/16/2026

1.54%

47

8/20/2025

NDAFH

Aa3

AA-

$600

5

8/28/1930

4.25%

50

8/25/2020

SEB

Aa2

A+

$600

5

9/2/2025

0.85%

58

8/24/2020

NDAFH

Aa3

AA-

$1,000

5

8/28/2025

0.75%

58

10/9/2024

RABOBK

Aa2

A+

$750

5

10/17/2029

4.49%

60

10/5/2021

NWIDE

A1

A

$1,000

5

10/13/2026

1.50%

60

9/28/2021

BFCM

Aa3

A

$800

5

10/4/2026

1.60%

60

1/12/2021

BPCEGP

A1

A+

$1,750

5

1/20/2026

1.00%

60

NDAFH also ranked top 5 on the 2023-25 FIG 5yr Low Coupon Table:

2023-25 FIG 5yr LOW COUPONS








DATE

Ticker

Top Sector

MDY

SP

Size

Mat

Final

Coupon

Spread

9/23/24

INDKOR

 

yfin

Aa2

NR

$500

5

9/30/29

4.000%

57

9/23/24

PCAR

fin

A1

A+

$400

5

9/26/29

4.000%

55

9/23/24

GUARDN

 

fin

Aa1

AA+

$500

5

9/26/29

4.179%

68

8/20/25

NDAFH

yfin

Aa3

AA-

$600

5

8/28/30

4.250%

50

6/24/25

WSTP

yfin

Aa2

AA-

$750

5

7/1/30

4.354%

50



Finally, with the addition of Athene Global Funding today – this week’s FABN total is now at $6.100bn/7 deals – good enough for No. 3 on the Largest FABN weeks table on both volume and deal.

ALL TIME LARGEST FABN VOLUME WK

ALL TIME LARGEST FABN DEAL WK

WK ENDING

VOLUME

DEAL

WK ENDING

VOLUME

DEAL

1/7/22

$8,800

11

1/7/22

$8,800

11

1/8/21

$6,650

7

1/10/25

$5,700

8

8/22/25

$6,100

7

1/8/21

$6,650

7

1/10/25

$5,700

8

8/22/25

$6,100

7

4/9/21

$4,950

6

4/9/21

$4,950

6

1/5/24

$4,650

6

1/5/24

$4,650

6

1/3/25

$4,250

5

1/12/24

$3,450

6

4/11/14

$3,750

1

1/3/25

$4,250

5

8/23/24

$3,500

4

6/7/24

$3,100

5

1/12/24

$3,450

6

12/6/24

$2,600

5

1/6/23

$3,250

4

5/30/25

$2,400

5

1/10/20

$3,175

3

9/17/21

$2,400

5

Here's today's rundown:


[WYNNTON FUNDING/AFL]

      Wynnton Funding Trust (the "2035 Trust") and Wynnton Funding Trust II (the "2055 Trust" and, together with the 2035 Trust, the "Trusts") (A3/A- s/s) hit the market today with US$2BN 144A/3(c)(7) no reg rights 2-part Pre-Capitalized Trust Securities (“P-Caps”) (10y FXD due 8/15/35 and 30y FXD due 8/15/55). MWC then 3mos par call on 10y and 6mos on 30y. Senior Notes: If issued and sold to the Trusts, the Senior Notes will be unsecured senior obligations of Aflac Incorporated ("Aflac") and the Senior Notes will rank equally in right of payment with all of Aflac's existing and future senior indebtedness from time to time outstanding. Senior Notes Issuer: Aflac Incorporated; Ticker: AFL. Denoms: $100,000 X $1,000. Sales into Canada: Yes – Exemption. ERISA Eligible: No. UOP: The Trusts will use the proceeds received from the sale of the P-Caps to purchase the required amount of Eligible Assets. If Aflac exercises its Issuance Rights under the Facility Agreements, Aflac will determine, in its sole discretion, the use to which it will put the Eligible Assets (or any proceeds thereof) received in connection therewith. To the extent that Aflac assigns its Issuance Rights, it will be assigning to the Issuance Right Assignee the ability to receive Eligible Assets (or any proceeds thereof). (All capitalized terms are as defined in the preliminary offering memorandum dated August 19, 2025, related to the offer and sale of the P-Caps). 

Electronic Investor Presentation URL: https://dealroadshow.com Entry Code: AFL2025.
Direct Link: https://dealroadshow.com/e/AFL202.
Pricing 8/20. Settle 8/27y (T+5). 144A CUSIP: 10y: 983196AA4, 30y: 983197AA2. 144A ISIN: 10y: US983196AA41, 30y: US983197AA24.

 

VIA Sole Structuring Advisor: TD. Joint Active Books: TD (B&D)/GS/Miz/SMBC/WFS.

 

Announced as benchmark, final size came in at $2bn with price progression as follows:

- 10yr – IPT T+125a; GDNC 97#; PXD $1bn 5.251% 8/15/35 100.00 5.251% T+97. MW+15.
- 30yr – IPT T+137.5a; GDNC 110#; PXD $1bn 5.991% 8/15/55 100.00 5.991% T+110. MW+20.

 

As for r/v, outstanding AFL seniors were quoted as follows:

 

Aflac (A3/A-)

- AFL 3.600% due 04/01/30 T+40bp (G42; $97.54) - $1bn pxd MAR 2020
- AFL 4.000% due 10/15/46 T+88bp ($78.77) - $400m pxd SEPT 2016
- AFL 4.750% due 01/15/49 T+91bp ($86.60) - $550m pxd OCT 2018

 

** 30YR - AFL ‘49s T+91bp; +2bp low $ (0.5 per $ starting at 90) = T+93bp.  + 2bp curve = T+95bp.  + 15bp P-Cap premium = T+110bp.  At the T+110bp pricing level, 30YR CONCESSION IS FLAT.

 

** 10YR – 30yr f/v T+110bp minus 12.5bp 10s/30s curve at IPT = T+97.5bp.  At the T+97bp pricing level, 10YR CONCESSION IS FLAT.

 

Senior comps away:

MetLife Inc (A3/A-/A-)
- MET 5.375% due 07/15/33 T+43bp (G63; $104.19) - $1.00bn pxd JULY 2023
- MET 5.300% due 12/15/34 T+60bp (G68; $103.05) - $750m pxd JUNE 2024
- MET 5.250% due 01/15/54 T+78bp ($94.07) - $1.0bn pxd JAN 2023


Prudential Financial Inc (A3/A/A-)
- PRU 2.100% due 03/10/30 T+44bp (G46; $91.26) - $500m pxd MAR 2020
- PRU 5.200% due 03/14/35 T+72bp (G78; $101.48) - $750m pxd MAR 2025
- PRU 3.700% due 03/13/51 T+81bp ($73.25) - $1.5bn pxd SEPT 2019

 

Principal Financial Group (Baa1/A-/A-)
- PFG 5.375% due 03/15/33 T+63bp (G87; $102.83) - $400m pxd MAR 2023
- PFG 5.500% due 03/15/53 T+91bp ($95.80) - $500m pxd 2/2725 +125

 

Travelers Cos Inc (A2/A/A)
- TRV 5.050% due 07/24/35 T+71bp (G74; $100.47) - $500m pxd 7/21/25 +70
- TRV 5.700% due 07/24/55 T+78bp ($100.41) - $750m pxd 7/21/25 +80 

  P-Cap comps away:

200 Park Funding Trust (A3/A-/A-)
- MET 5.740% due 02/15/55 T+96bp ($98.32) - $1.25bn pxd 02/25/25/+120bp

Five Corners Funding Trust IV (A3/A/A-)
- PRU 5.997% due 02/15/53 T+102bp ($101.04) - $700m pxd MAR 2023

High Street Funding Trust III (Baa1/A-/A-)
- PFG 5.807% due 02/15/55 T+115bp ($96.67) - $500m pxd FEB 2025

- MET 5.740% due 2055 P-Caps T+96bp; MET 5.250% due Jan 2054 seniors T+78bp.   MET P-Caps/Senior Differential 18bp.
- PFG 5.997% due Feb 2055 P-Caps T+115bp; PFG 5.500% due Mar ‘53s seniors T+91bp. PFG P-Caps/Senior Differential 24bp

FINAL BOOKS:

$1bn 10yr - $2.70bn (2.70x) – PEAK $3.800BN
$1bn 30yr - $3.25bn (3.25x) – PEAK $4.200BN

VIA Sole Structuring Advisor: TD. Joint Active Books: TD (B&D)/GS/Miz/SMBC/WFS.

 Announced as benchmark, final size came in at $2bn with price progression as follows:

- 10yr – IPT T+125a; GDNC 97#; PXD $1bn 5.251% 8/15/35 100.00 5.251% T+97. MW+15.
- 30yr – IPT T+137.5a; GDNC 110#; PXD $1bn 5.991% 8/15/55 100.00 5.991% T+110. MW+20.

 As for r/v, outstanding AFL seniors were quoted as follows:

 Aflac (A3/A-)

- AFL 3.600% due 04/01/30 T+40bp (G42; $97.54) - $1bn pxd MAR 2020
- AFL 4.000% due 10/15/46 T+88bp ($78.77) - $400m pxd SEPT 2016
- AFL 4.750% due 01/15/49 T+91bp ($86.60) - $550m pxd OCT 2018

 ** 30YR - AFL ‘49s T+91bp; +2bp low $ (0.5 per $ starting at 90) = T+93bp.  + 2bp curve = T+95bp.  + 15bp P-Cap premium = T+110bp.  At the T+110bp pricing level, 30YR CONCESSION IS FLAT.

 ** 10YR – 30yr f/v T+110bp minus 12.5bp 10s/30s curve at IPT = T+97.5bp.  At the T+97bp pricing level, 10YR CONCESSION IS FLAT.

 Senior comps away:

MetLife Inc (A3/A-/A-)
- MET 5.375% due 07/15/33 T+43bp (G63; $104.19) - $1.00bn pxd JULY 2023
- MET 5.300% due 12/15/34 T+60bp (G68; $103.05) - $750m pxd JUNE 2024
- MET 5.250% due 01/15/54 T+78bp ($94.07) - $1.0bn pxd JAN 2023

Prudential Financial Inc (A3/A/A-)
- PRU 2.100% due 03/10/30 T+44bp (G46; $91.26) - $500m pxd MAR 2020
- PRU 5.200% due 03/14/35 T+72bp (G78; $101.48) - $750m pxd MAR 2025
- PRU 3.700% due 03/13/51 T+81bp ($73.25) - $1.5bn pxd SEPT 2019

 Principal Financial Group (Baa1/A-/A-)
- PFG 5.375% due 03/15/33 T+63bp (G87; $102.83) - $400m pxd MAR 2023
- PFG 5.500% due 03/15/53 T+91bp ($95.80) - $500m pxd 2/2725 +125

 Travelers Cos Inc (A2/A/A)
- TRV 5.050% due 07/24/35 T+71bp (G74; $100.47) - $500m pxd 7/21/25 +70
- TRV 5.700% due 07/24/55 T+78bp ($100.41) - $750m pxd 7/21/25 +80 

  P-Cap comps away:

200 Park Funding Trust (A3/A-/A-)
- MET 5.740% due 02/15/55 T+96bp ($98.32) - $1.25bn pxd 02/25/25/+120bp

Five Corners Funding Trust IV (A3/A/A-)
- PRU 5.997% due 02/15/53 T+102bp ($101.04) - $700m pxd MAR 2023

High Street Funding Trust III (Baa1/A-/A-)
- PFG 5.807% due 02/15/55 T+115bp ($96.67) - $500m pxd FEB 2025

- MET 5.740% due 2055 P-Caps T+96bp; MET 5.250% due Jan 2054 seniors T+78bp.   MET P-Caps/Senior Differential 18bp.
- PFG 5.997% due Feb 2055 P-Caps T+115bp; PFG 5.500% due Mar ‘53s seniors T+91bp. PFG P-Caps/Senior Differential 24bp

FINAL BOOKS:

$1bn 10yr - $2.70bn (2.70x) – PEAK $3.800BN
$1bn 30yr - $3.25bn (3.25x) – PEAK $4.200BN 

[NORDEA BANK] 

Nordea Bank Abp “NDAFH” (Aa3/AA-/AA) US$1bn 144A/Reg S no reg rights 5y fixed and/or floating 2-part Senior Preferred notes due 8/28/30. Early Redemption: Applicable, on the occurrence of a Withholding Tax Event, Tax Event, or MREL Disqualification Event, as per Conditions 6(b), 6(c) and 6(d). Denoms: 200,000 x 1,000. Sale into Canada: Yes - Exemption. Listing: Euronext Dublin (GEM). Governing Law: English law except for no set-off provisions in Condition 4(4) which will be governed by the laws of Finland. UOP: General Banking and Other Corporate Purposes. Pricing 8/20. Settle 8/28. 144A CUSIP: 5y FXD: 65558RAN9, 5y FRN: 65558RAP4. 144A ISIN: 5y FXD: US65558RAN98, 5y FRN: US65558RAP47.

VIA Barc/BofA/Citi/MS/WFS joint active books.

Announced with benchmark size, we heard initial thoughts as T+75 area and SOFR equiv.

Guidance came in at T+50# and SOFR+83#.

Ultimately, a $1bn deal priced as follows:

$400m 8/28/30 FRN at SOFR+83, at 100.

$600m 4.25% 8/28/30 99.817 4.291% T+50.

As for r/v, outstanding NDAFH was quoted as follows:

-NDAFH 4.375% due 03/17/28 T+30bp (G28; $100.89) - $600m pxd MAR 2025
-NDAFH 4.375% due 09/10/29 T+38bp (G43; $100.65) - $700m pxd SEPT 2024

*** Sept ’29 G43, add 7bp for ‘29/30 curve gets f/v to T+50bp. At the T+50bp pricing level, CONCESSION IS FLAT.

COMPS AWAY:

Svenska Handelsbanken AB (Aa2/AA-/AA+)
-SHBASS 4.375% due 05/23/28 T+36bp (G35; $100.80) - $750m pxd 05/19/25 +50

Cooperatieve Rabobank US/NY (Aa2/A+/AA-)
-RABOBK 4.883% due 01/21/28 T+30bp (G28; $102.00) - $700m pxd JAN 2025
-RABOBK 4.494% due 10/17/29 T+37bp (G41; $101.14) - $750m pxd OCT 2024

Westpac Banking Corp (Aa2/AA-)
-WSTP 4.354% due 07/01/30 T+40bp (G40; $100.57) - $750m pxd 06/24/25 +50

Swedbank AB (Aa2/A+/AA)
-SWEDA 4.998% due 11/20/29 T+49bp (G53; $102.63) - $650m pxd NOV 2024

National Australia Bank Ltd/NY (Aa2/AA-)
-NAB 4.901% due 01/14/30 T+39bp (G42; $102.74) - $750m pxd JAN 2025
-NAB 4.534% due 06/13/30 T+41bp (G42; $101.31) - $750m pxd 06/03/25 +52

Commonwealth Bank of Australia (Aa2/AA-/AA-)
-CBAAU 4.608% due 03/14/30 T+37bp (G39; $101.72) - $500m pxd MAR 2025

FINAL BOOK:

 $400m 3yr FRN - $1.000bn (2.50x) - PEAK $1.100bn

$600m 3yr FXD - $1.100bn (1.83x) - PEAK $1.600bn


[ATHENE GLOBAL FUNDING] 

Athene Global Funding “ATH” (A1/A+/A+) US$600m 144A/Reg S no reg rights 10y FXD sr secured FA-Backed due 8/22/35. FA Provider: Athene Annuity and Life Company. Denoms: 2,000 x 1,000. Sales into Canada: Yes - via exemption. UOP: To purchase one or more Funding Agreements from Athene Annuity and Life Company (“AAIA”). Pricing 8/20. Settle 8/22 (T+2). 

VIA BofA/DB (B&D)/RBC/SMBC joint active books.

Announced as a benchmark, we heard initial price thoughts as T+150 area.

Went straight to launch at $600m 10y at T+125.

Ultimately, a $600m deal priced as follows:

$600m 5.543% 8/22/35 100.00 5.543% T+125.

 As for r/v, outstanding ATH was quoted as follows:
-ATH 5.033% due 07/17/30 T+93bp (G93; $101.29) - $850M pxd 7/14/25 +105
-ATH 5.322% due 11/13/31 T+116bp (G102; $101.88) - $650M pxd Nov 2024

**Outstanding Jul 30s G93; plus 25-30bp 5s/10s curve, call f/v T+120bp. At the T+125bp pricing level, CONCESSION IS 5BP.

Athene Hold-co:

Athene Holding LTD (Baa1/A-/BBB-)
-ATH 5.875% due 01/15/34 T+104bp (G120; $103.55) - $600M pxd Dec 2023

Comps away:

MassMutual Global Funding (Aa3/AA+/AA+)
MASSMU 5.050% due 8/26/35 T+79bp (G79; $99.78) - $600M pxd 8/19/25 +78

Pricoa Global Funding 1 (Aa3/AA-/AA-)
-PRU 4.750% due 8/26/32 T+71bp (G70; $100.15) - $600M pxd 8/19/25 +73

Corebridge Global Funding (A2/A+)
-CRBG 4.900% due 8/21/32 T+88bp (G88; $99.99) - $500M pxd 8/18/25 +88

RGA Global Funding (A1/AA-)
-RGA 5.000% due 8/25/32 T+95bp (G94; $100.20) - $700M pxd 8/18/25 +95

FINAL BOOKS:

$600m 10yr - $1.600bn (2.67x) - $2.250bn


[M&A TODAY]

Lowe's Cos Inc "LOW" (Baa1/BBB+) entered an agreement to acquire Foundation Building Materials Inc "FBM" (Caa2/CCC+) for $8.8bn cash.


Lowe's plans on funding the purchase price with short and long term debt and has obtained a $9bn bridge facility with BofA and GS. LOW last issued a $3bn deal in March 2023. With the expected new debt, Lowe's anticipates their leverage will rise to 3.4-3.5x at closing and intends to lower to 2.75x by Q2 2027. LOW intends to maintain their Baa1/BBB+ credit ratings.


The transaction is expected to close by Q4 2025.

Goldman Sachs and Centerview Partners are the financial advisors with Freshfields LLP  providing legal counsel to Lowe's.

RBC is the financial advisor with Weil, Gotshal & Manges LLP providing legal counsel to FBM.


https://corporate.lowes.com/newsroom/press-releases/lowes-announces-agreement-acquire-foundation-building-materials-leading-north-american-distributor-interior-building-products-08-20-25

https://corporate.lowes.com/sites/lowes-corp/files/lowes-fbm-presentation.pdf

https://www.sec.gov/ix?doc=/Archives/edgar/data/0000060667/000006066725000162/low-20250819.htm


aj@creditflowresearch.com 

jdziwura@creditflowresearch.com 

sarah@creditflowresearch.com