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Commentary & Deal Flow

CFR CREDIT CLOSE: Are We Done Yet?

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

    Today turned in only 2 deals for $3.00bn – not even halfway to the average $6.463bn estimate.  This led to the major follow-up question of the afternoon.  Is this it for the week?  The answer appears to be YES!

     We did a quick market sweep this afternoon on potential Tuesday activity.  Here are the results:

     27 shops – 0

     2 shops - ?

     One of the zero respondents said “probably done” – more like as of now nothing but you never know.  And we don’t love the two question marks.   But after a grueling late October/November that turned in $219.105bn, most think a rest makes sense.

    Unless a surprise emerges tomorrow, Thanksgiving Week 2025 will end down 54% vs the average estimate.

    Even with 2024 coming in up 91% vs the estimate, looking back through 2020 the average for Thanksgiving week shows it generally disappointing to the downside:

 

THANKSGIVING WEEK FINAL VS AVG EST





WEEK ENDING

DEALS

TRANCHES

VOLUME

ESTIMATE (AVG)

ESTIMATE (HIGH)

ESTIMATE (LOW)

FINAL VS AVG EST

11/28/2025 WTD

2

5

$3.000

$6.463

$11.000

$2.500

-54%

11/29/2024

7

14

$13.700

$7.179

$20.000

$2.500

91%

11/24/2023

3

6

$5.500

$6.792

$10.000

$5.000

-19%

11/25/2022

5

8

$5.900

$5.750

$7.500

$2.500

3%

11/26/2021

3

6

$4.500

$8.222

$15.000

$4.000

-45%

11/27/2020

1

1

$0.300

$4.610

$12.000

$2.000

-93%







6YR AVG MISS: 

-20%


    Today’s $3bn pushed record November 2025 over $140bn.  Minus a surprise on Tuesday, November’s final is $140.025bn - $14bn+ above previous record holder 2012.

NOVEMBER 2025 GOAL POST 


NOV 2025 MTD

$140,025

$NEED TO HIT

NOV 2025 AVG EST

$126,232

($13,793)

NOV 2025 HIGH EST

$150,000

$9,975

NOV 2025 LOW EST

$120,000

($20,025)

NOV 3YR AVG

$103,688

($36,337)

NOV 5YR AVG

$104,271

($35,754)

PREV NOV RECORD (2012)

$125,643

($14,382)

Today's low spread/coupon notables:


Duke Energy Florida's 10yr logged 2025's lowest 10yr utility coupon:

2025 10yr UTIL LOW COUPONS











DATE

Issuer

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

11/24/25

Duke Energy Florida

DUK

util

A1

A

 

$600

10

12/1/35

4.850%

92

9/3/25

PECO Energy Inc

EXC

util

Aa3

A


$525

10

9/15/35

4.875%

68

8/7/25

Public Service Electric & Gas Co

PEG

util

A1

A


$450

10

8/15/35

4.900%

67

9/8/25

Virginia Electric & Power (VEPCO)

D

util

A3

BBB+

A

$825

10

9/15/35

4.900%

87

9/16/25

Southern Power Co

SO

util

Baa1

BBB+

BBB+

$550

10

10/1/35

4.900%

90

8/4/25

CenterPoint Energy Houston Electric LLC

CNP

util

A2

A

A

$600

10

8/15/35

4.950%

80

9/8/25

Duke Energy Corp

DUK

util

Baa2

BBB


$1,000

10

9/15/35

4.950%

95

Duke Energy Florida's 5yr came in at No. 3 on the 2023-2025 5yr Utility Low Coupon List:

2023-25 5yr UTIL LOW COUPONS











DATE

Issuer

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

11/5/25

Korea Electric Power Corp (KEPCO)

KORELE

yutil

Aa2

AA


$400

5

11/12/30

4.125%

47

9/18/25

Wisconsin Electric Power Co

WEC

util

A2

A-

A+

$500

5

10/15/30

4.150%

50

11/24/25

Duke Energy Florida

DUK

util

A1

A

 

$500

5

12/1/30

4.200%

62

7/2/25

Korea Gas Corp 

KORGAS

yutil

Aa2

AA

AA-

$500

5

7/10/30

4.250%

47

9/16/25

Southern Power Co

SO

util

Baa1

BBB+

BBB+

$550

5

10/1/30

4.250%

70

Roche landed with the 4th lowest 5yr coupon of 2025:

2025 5yr LOW COUPONS










DATE

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

9/8/25

HD

ind

A2

A

A

$500

5

9/15/30

3.950%

45

10/27/25

PM

ind

A2

A-

A

$750

5

10/29/30

4.000%

58

10/14/25

KEBHNB

yfin

Aa3

A+


$300

5

10/21/30

4.000%

43

9/15/25

AMAT

ind

A2

A


$550

5

1/15/31

4.000%

47

4/28/25

GOOGL

ind

Aa2

AA+


$750

5

5/15/30

4.000%

32

4/28/25

PG

ind

Aa3

AA-


$700

5

5/1/30

4.050%

28

11/24/25

ROSW

yind

Aa2

AA

AA

$500

5

12/2/30

4.075%

47

11/17/25

AMZN

ind

A1

AA

AA-

$2,500

5

11/20/30

4.100%

40

11/3/25

GOOGL

ind

Aa2

AA+


$2,500

5

11/15/30

4.100%

40

11/3/25

NOVNVX

ind

Aa3

AA-


$1,750

5

11/5/30

4.100%

45

Roche landed No. 6 on the 2025 7yr Low Coupon List:

2025 7yr LOW COUPONS










DATE

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

10/27/25

PG

ind

Aa3

AA-


$750

7

11/3/32

4.100%

32

10/27/25

SANFP

yind

Aa3

AA

AA

$1,200

7

11/3/32

4.20%

45

10/27/25

PM

ind

A2

A-

A

$850

7

10/29/32

4.250%

68

11/3/25

NOVNVX

ind

Aa3

AA-


$925

7

11/5/32

4.300%

50

11/17/25

AMZN

ind

A1

AA

AA-

$1,500

7

3/20/33

4.350%

47

11/24/25

ROSW

yind

Aa2

AA

AA

$600

7

12/2/32

4.374%

58

11/3/25

GOOGL

ind

Aa2

AA+


$1,250

7

11/15/32

4.375%

50

Roche came in No. 7 on the 2025 10yr Low Coupon List:

2025 10yr LOW COUPONS










DATE

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

10/27/25

PG

ind

Aa3

AA-


$500

10

11/3/35

4.350%

37

4/28/25

GOOGL

ind

Aa2

AA+


$1,250

10

5/15/35

4.500%

47

8/26/25

OCBCSP

yfin

A2

BBB+

A

$1,000

10

9/8/35

4.550%

80

11/3/25

NOVNVX

ind

Aa3

AA-


$925

10

11/5/35

4.600%

55

9/15/25

AMAT

ind

A2

A


$450

10

1/15/36

4.600%

60

4/28/25

PG

ind

Aa3

AA-


$550

10

5/1/35

4.600%

43

10/27/25

APH

ind

A3

A-


$1,600

10

2/15/36

4.625%

65

10/27/25

PM

ind

A2

A-

A

$850

10

10/29/35

4.625%

78

11/17/25

AMZN

ind

A1

AA

AA-

$3,500

10

11/20/35

4.650%

55

9/8/25

HD

ind

A2

A

A

$1,000

10

9/15/35

4.650%

63

11/24/25

ROSW

yind

Aa2

AA

AA

$800

10

12/2/35

4.666%

63

Duke Energy Florida came in at No. 7 on the 2020-2025 5yr FMB Low Spread Table:

2020-25 5yr FMB LOW SPREADS











DATE

Issuer

Ticker

Top Sector

MDY

SP

FTCH

Size

Mat

Final

Coupon

Spread

11/16/20

The Connecticut Light & Power Co

ES

util

A1

A+

A+

$400

5

12/1/25

0.750%

35

9/23/20

Oncor Electric Delivery Co LLC

ONCRTX

util

A2

A+

A

$450

5

10/1/25

0.550%

40

1/2/25

Duke Energy Carolinas LLC

DUK

util

Aa3

A


$400

5

3/15/30

4.850%

50

11/8/24

Oncor Electric Delivery Co LLC

ONCRTX

util

A2

A+

A

$550

5

11/1/29

4.650%

52

1/6/25

The Connecticut Light & Power Co

ES

util

A1

A

A+

$400

5

1/15/30

4.950%

55

2/24/25

CenterPoint Energy Houston Electric LLC

CNP

util

A2

A

A

$500

5

3/15/30

4.800%

60

5/28/24

Florida Power and Light Co

NEE

util

Aa2

A+

AA-

$750

5

6/15/29

5.150%

60

11/24/25

Duke Energy Florida

DUK

util

A1

A

 

$500

5

12/1/30

4.200%

62

HERE'S TODAY'S RUNDOWN:

[ROCHE HOLDINGS]

Roche Holdings Inc (ROSW) exp Aa2/AA/AA (s/s/s) US$1.9bn 144A/Reg S no rig rights 3-part sr notes (5y FXD due 12/2/30, 7y FXD due 12/2/32 and 10y FXD due 12/2/35). MWC then 1mo par call on 5y (11/2/30), 3mos on 7y (10/2/32) and 3mos on 10y (9/2/35). Guarantor: Roche Holding Ltd. Denoms: 200,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: general corporate purposes, which may include, without limitation, mergers and acquisitions, licensing, refinancing of regular debt maturities, payments of dividends and potential early redemptions. Pricing 11/24. Settle 12/2 (T+5). 144A Cusip: 5y: 771196CS9, 7y: 771196CT7, 10y: 771196CU4. 144A ISIN: 5y: US771196CS97, 7y: US771196CT70, 10y: US771196CU44. 

VIA Barc (B&D)/BNP/JPM/MUFG joint active books. 

Announced with benchmark size final size came in at $1.9bn with price progression as follows:

5yr - IPT T+75 area; GDNC T+47#; PXD $500m 4.075% 12/2/30 100.00 4.075% T+47. MW+10.

7yr - IPT T+80-85; GDNC T+58#; PXD $600m 4.374% 12/2/32 100.00 4.374% T+58. MW+10.

10yr - IPT T+90 area; GDNC T+63#; PXD $800m 4.666% 12/2/35 100.00 4.666% T+63. MW+10.

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

-ROSW 4.790% due 03/08/29 T+39bp (G49; $102.35) - $875m pxd MAR 2024
-ROSW 4.203% due 09/09/29 T+36bp (G43; $100.78) - $900m pxd SEPT 2024
-ROSW 5.489% due 11/13/30 T+42bp (G43; $106.30) - $1.25bn pxd NOV 2023
-ROSW 4.909% due 03/08/31 T+56bp (G54; $103.56) - $750m pxd MAR 2024
-ROSW 4.985% due 03/08/34 T+43bp (G58; $103.42) - $1.25bn pxd MAR 2024
-ROSW 4.592% due 09/09/34 T+51bp (G62; $100.24) - $1bn pxd SEPT 2024
-ROSW 5.218% due 03/08/54 T+68bp ($97.82) - $1.6bn pxd MAR 2024

Focusing on their outstanding September 2024 trades:

*** 10yr: Sept ’34 G62, add 3bp for ‘34/’35 curve gets f/v to T+65bp. At the T+63bp pricing level, 10yr CONCESSION IS NEG 2BP.

*** 7yr: 10y f/v at T+65, take away 7.5bp for IPT curve gets f/v to T+58bp. At the T+58bp pricing level, 5yr CONCESSION IS FLAT.

*** 5yr: Sept ’29 G43, add 7bp for ‘29/30 curve gets f/v to T+50bp. Also looking at 7y f/v at T+57, take away 7.5bp for IPT curve gets f/v to T+50bp. At the T+47bp pricing level, 5yr CONCESSION IS NEG 3BP.

Novartis was also seen as a relevant comp which pointed to f/v in a similar spot after applying an SEC to 144A differential. 

Novartis Capital Corp (Aa3/AA-)
-NOVNVX 3.900% due 11/05/28 T+26bp (G26; $100.37) - $700m pxd 11/03/25 +30
-NOVNVX 4.100% due 11/05/30 T+44bp (G44; $100.19) - $1.75bn pxd 11/03/25 +45
-NOVNVX 4.300% due 11/05/32 T+50bp (G50; $99.95) - $925m pxd 11/03/25 +50
-NOVNVX 4.600% due 11/05/35 T+59bp (G59; $99.68) - $925m pxd 11/03/25 +55

*** 10yr: NOVNVX Nov ‘35 G59, plus 5bp for SEC to 144A premium gets f/v to T+65bp. At the T+63bp pricing level, 10yr CONCESSION IS NEG 2BP.

*** 7yr: 10y f/v at T+65, take away 7.5bp for IPT curve gets f/v to T+58bp. At the T+58bp pricing level, 7yr CONCESSION IS FLAT.

*** 5yr: NOV ‘30 G44, add 5bp for SEC to 144A premium gets f/v to T+50bp. Also 7y f/v at T+58, take away 7.5bp for IPT curve gets f/v to T+50bp. At the T+47bp pricing level, 5yr CONCESSION IS NEG 3BP.

COMPS AWAY:

Pfizer Inc (A2/A)
-PFE 3.875% due 11/15/27 T+26bp (G25; $100.18) - $1bn pxd 11/18/25 +30
-PFE 4.200% due 11/15/30 T+51bp (G51; $100.29) - $1bn pxd 11/18/25 +52
-PFE 4.500% due 11/15/32 T+61bp (G62; $100.47) - $1.25bn pxd 11/18/25 +65
-PFE 4.875% due 11/15/35 T+72bp (G74; $100.78) - $1.25bn pxd 11/18/25 +75

Eli Lilly & Co (Aa3/A+)
-LLY 4.000% due 10/15/28 T+30bp (G30; $100.50) - $1bn pxd 08/18/25 +28
-LLY 4.250% due 03/15/31 T+52bp (G49; $100.50) - $750m pxd 08/18/25 +40
-LLY 4.550% due 10/15/32 T+51bp (G53; $101.30) - $1bn pxd 08/18/25 +48
-LLY 4.900% due 10/15/35 T+58bp (G61; $102.05) - $1.25bn pxd 08/18/25 +57
-LLY 5.550% due 10/15/55 T+71bp ($102.15) - $1bn pxd 08/18/25 +65

Sanofi SA (Aa3/AA)
-SANFP 3.750% due 11/03/27 T+17bp (G17; $100.11) - $400m pxd 10/27/25 +25
-SANFP 3.800% due 11/03/28 T+28bp (G28; $100.03) - $400m pxd 10/27/25 +30
-SANFP 4.200% due 11/03/32 T+45bp (G45; $99.64) - $1.2bn pxd 10/27/25 +45

FINAL BOOKS:

$500m 5yr - $2.200bn (4.40x) - PEAK $3.400bn

$600m 7yr - $2.000bn (3.33x) - PEAK $2.600bn

$800m 10yr - $2.250bn (2.81x) - PEAK $3.700bn


[DUKE ENERGY FLORIDA]

Duke Energy Florida LLC (DUK) exp A1/A (s/s) US$1.1bn SEC registered 2-part first mortgage bonds (5y FXD due 12/1/30 and 10y FXD due 12/1/35). MWC then 1mo par call on 5y (11/1/30) and 3mos on 10y (9/1/35). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. Prohibited Sales: Hong Kong and Mainland China. UOP: to pay down a portion of outstanding intercompany short-term debt and for general corporate purposes, including to fund capital expenditures for ongoing construction and capital maintenance. Pricing 11/24. Settle 11/26 (T+2). Cusip: 5y: 26444HAT8, 10y: 26444HAU5. ISIN: 5y: US26444HAT86, 10y: US26444HAU59. 

VIA CIBC/Citi (B&D)/MS/MUFG/Sant/SMBC/TD/USB joint active books.

Announced as a benchmark, we heard initial price thoughts as 5y T+90 area, 10y T+112.5 area.

Went straight to launch at $500m 5y at T+62. $600m 10y at T+82.

Ultimately, a $1.1bn deal priced as follows:

$500m 4.20% 12/1/30 99.861 4.231% T+62. MW+10.

$600m 4.85% 12/1/35 99.968 4.854% T+82. MW+15.

 As for r/v, outstanding DUK was quoted as follows:
-DUK 1.750% due 06/15/30 T+54bp (G56; $90.085) - $500M pxd Jun 2020
-DUK 2.400% due 12/15/31 T+64bp (G53; $90.192) - $650M pxd Nov 2021
-DUK 5.875% due 11/15/33 T+57bp (G75; $108.092) - $600M pxd Nov 2023
-DUK 6.200% due 11/15/53 T+93bp ($108.07) - $700M pxd Nov 2023

** 10yr - outstanding Nov 33s G75; plus 7bp for ‘33/’35 curve = T+82bp. At the T+82bp pricing level, 10YR CONCESSION IS FLAT.

** 5yr - 10yr f/v T+82bp; minus 22.5bp 5s/10s curve at IPT = T+59.5bp f/v.

Or look at outstanding Jun 30s G56; plus 3bp for the 6 months extension = T+59bp. 

Call 5yr f/v T+59bp. At the T+62bp pricing level, 5YR CONCESSION IS 3BP.

Comps away:

 Duke Energy Carolinas (Aa3/A/N/A)
-DUK 4.850% due 03/15/30 T+49bp (G53; $102.862) - $400M pxd Jan 2025
-DUK 5.250% due 03/15/35 T+71bp (G78; $103.584) - $700M pxd Jan 2025

Duke Energy Progress LLC (Aa3/A/N/A)
-DUK 3.450% due 03/15/29 T+35bp (G45; $98.418) - $600M pxd Mar 2019
-DUK 5.050% due 03/15/35 T+77bp (G84; $101.699) - $850M pxd Mar 2025

Duke Energy Ohio Inc (A2/A/N/A)
-DUK 5.300% due 06/15/35 T+81bp (G86; $103.269) - $350M pxd 06/02/25 +88

Florida Power & Light Co (Aa2/A+/AA-)
-NEE 5.150% due 06/15/29 T+32bp (G41; $103.82) - $750M pxd May 2024
-NEE 5.300% due 06/15/34 T+57bp (G71; $104.67) - $1.1B pxd May 2024

MidAmerican Energy Co (Aa2/A/N/A)
-BRKHEC 3.650% due 04/15/29 T+41bp (G50; $98.817) - $850M pxd Jan 2019
-BRKHEC 5.350% due 01/15/34 T+60bp (G77; $104.605) - $350M pxd Sep 2023

Consumers Energy Co (A1/A/A+)
-CMS 4.500% due 01/15/31 T+62bp (G62; $101.175) - $500M pxd Apr 2025
-CMS 5.050% due 05/15/35 T+72bp (G80; $102.053) - $625M pxd Apr 2025

Commonwealth Edison Co (A1/A/WD)
-EXC 2.200% due 03/01/30 T+47bp (G51; $92.681) - $350M pxd Feb 2020
-EXC 5.300% due 06/01/34 T+57bp (G70; $104.652) - $400M pxd May 2024

Connecticut Light & Pwr (A2/A/A+ *-)
-ES 4.950% due 01/15/30 T+58bp (G63; $102.79) - $400M pxd Jan 2025
-ES 4.950% due 08/15/34 T+75bp (G87; $101.06) - $300M pxd Aug 2024

Centerpoint Energy Houston (A2/A/A)
-CNP 4.800% due 03/15/30 T+50bp (G54; $102.631) - $500M pxd Feb 2025
-CNP 4.950% due 08/15/35 T+78bp (G82; $100.92) - $600M pxd 08/04/25 +80

FINAL BOOKS:

$500m 5yr - $3.800bn (7.60x) - PEAK $4.200bn 

$600m 10yr - $3.550bn (5.92x) - PEAK $4.900bn