Commentary & Deal Flow

Despite a snowstorm blanketing much of the Northeast since yesterday, issuance barely skipped a beat. Six issuers priced a combined $10.7bn on the day, with another 1–2 deals reportedly standing down this morning.

Banks continue to capitalize on tight spreads. Entering the week, YTD bank issuance stood at $103.5bn—just $251m shy of surpassing January 2025’s prior record of $103.75bn as the largest bank month on record. One deal would have been sufficient. Instead, three banks came to market—GS ($2.5bn), FITB ($2bn), and ONB ($450m)—for a combined $4.95bn, pushing January’s record bank total to $108.45bn.

The 6-pack accounted for $48.4bn of January 2025 bank issuance, marking the largest 6-pack month on record. January 2026 6-pack volume currently stands at $42.5bn, the third-largest on record. 

Today’s $10.7bn lifts January volume to $189.271bn, putting it within $6.629bn of the January 2025 record ($195.900bn) and $11.122bn of the $200.393bn January estimate.

Among today’s deal notables, FITB’s 11nc10 at T+93bp ranks as the tightest BBB bank 10-year spread since 2009:

FITB’s 6nc5 at T+75bp ranks as the 4th BBB bank 5yr spread through 2009, just ahead of HBAN’s T+77bp from last Friday:

TEL’s 10y at T+70bp ties as the 6th lowest yankee 10y spread back through 2022. It ties with KUAISH from 1/15/26 and is just behind TTEFP’s T+68 from 1/6/26:

NYLIFE’s 3y at T+40bp ties as the 2nd lowest 3yr FABN spread back through 2022.

Here’s Today’s Rundown:

[SAUDI ARABIAN OIL COMPANY]

Saudi Arabian Oil Company (Saudi Aramco) (Ticker: ARAMCO), exp Aa3/A+ (s/s) by Moody's/Fitch, US$4bn 144A/Reg S (Cat 2) 4-part sr notes (3y FXD due 2/2/29, 5y FXD due 2/2/31, 10y FXD due 2/2/36 and 30y FXD due 2/2/56). MWC then 1mo par call on 3y (1/2/29), 1mo on 5y (1/2/31), 3mos on 10y (11/2/35) and 6mos on 30y (8/2/55). Coupon: fixed rate, semi-annual, 30/360. Listing: London Stock Exchange (Main Market). Clearing: DTC (in relation to Rule 144A) and Euroclear and Clearstream, Luxembourg (in relation to Reg S). Governing Law: English Law. Denoms: $200,000 x $1,000. Netroadshow Link: https://dealroadshow.com/e/ATLANTIC26. Pricing 1/26. Settle 2/2 (T+5). 144A ISIN: 3y: US80415RAB78, 5y: US80415RAA95, 10y: US80415RAC51, 30y: US80415RAD35.

VIA Citi (B&D on 30y)/GS/HSBC (B&D on 5y)/JPM (B&D on 10y)/MS (B&D on 3y) active joint books. Passive: ADCB/BoC/BofA/BSF Capital/ ENBD/ FADB/ Miz/ MUFG/ Natixis/ Riyad/ SMBC/ StanChart.

Announced with benchmark size, final size came in at $4bn with price progression as follows:

3yr - IPT T+100 area; STL T+60; PXD $500m 4.00% 2/2/29 99.281 4.258% T+60. MW+10.

5yr - IPT T+115 area; STL T+80; PXD $1.5bn 4.375% 2/2/31 98.895 4.625% T+80. MW+15.

10yr - IPT T+125 area; STL T+95; PXD $1.25bn 5.00% 2/2/36 98.709 5.167% T+95. MW+15.

30yr - IPT T+165 area; STL T+130; PXD $750m 6.00% 2/2/56 98.550 6.106% T+130. MW+20.

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

-ARAMCO 4.750% due 06/02/30 T+58bp (G64; $101.39) - $1.5bn pxd 5/27/25 +80

-ARAMCO 5.375% due 06/02/35 T+82bp (G87; $102.40) - $1.25bn pxd 5/27/25 +95

-ARAMCO 5.750% due 07/17/54 T+125bp ($95.76) - $2.00bn pxd JULY 2024

With the outstandings not being very liquid and trading levels varying (Another saw the 30s at G69; 35s at G82 and 54s at T+122), we looked at KSA with the target landing level being about 10bp back of KSA.

Saudi Government International Bond (Aa3/A+/A+)

-KSA 4.125% due 01/12/29 T+57bp (G57; $99.72) - $2.5bn pxd 01/05/26 +65
-KSA 4.375% due 01/12/31 T+65bp (G65; $99.56) - $2.75bn pxd 01/05/26 +75
-KSA 4.875% due 01/12/36 T+80bp (G79; $98.94) - $2.75bn pxd 01/05/26 +85
-KSA 5.875% due 01/12/56 T+121bp ($98.04) - $3.5bn pxd 01/05/26 +110

*** 30yr: KSA Jan ‘56 T+121, adding 10bp call f/v at T+130bp. At the T+130bp pricing level, 30yr CONCESSION IS FLAT.

*** 10yr: KSA Jan ‘36 G79, adding 10bp call f/v at T+90bp. At the T+95bp pricing level, 10yr CONCESSION IS 5BP.

*** 5yr: KSA Jan ‘31 G65, adding 10bp call f/v at T+75bp. At the T+80bp pricing level, 5yr CONCESSION IS 5BP.

*** 3yr: KSA Jan ‘29 G57, adding 10bp call f/v at T+65bp. At the T+60bp pricing level, 3yr CONCESSION IS NEG 5BP.

Heard $21bn combined peak books.

[GOLDMAN SACHS]

The Goldman Sachs Group Inc (GS) exp Baa2/BBB/BBB+ (s/s/s) US$2.5bn SEC registered 15nc10 fixed rate reset subordinated notes due 2/2/41. MWC: On or after 2/2/2031, up to but excluding 2/2/2036. Coupon reset date: 2/2/36. Coupon reset benchmark: 5-Year U.S. Treasury Rate. First Pay: 8/2/2026. Par Call: 2/2/2036. Daily on or after 8/2/2040. TAX: US issuer, see prospectus on FATCA withholding. Denoms: $2,000 x $1,000. UOP: gcp. Pricing 1/26. Settle 2/2 (T+5). CUSIP: 38145GAU4. ISIN: US38145GAU40. 

VIA GS sole books.

Announced with benchmark size, we heard initial thoughts as T+140 area.

Guidance came in at T+118#.

Ultimately, a $2.5bn deal priced as follows:

$2.5bn 5.387% 2/2/41 100.00 5.387% T+118 (reset). MW+20.

As for r/v, this is GS first sub/T2 trade since 2015, recently priced MS 15nc10 sub was the more relevant bond

Subs:

Morgan Stanley (Baa1/BBB+/A-)
-MS 5.314% due 01/18/41 nc36 T+116bp (G115; $99.62) - $1.5bn pxd 01/15/26 +117

*** Jan ‘41 nc36 G115 (priced at 117), GS trades a couple bp back of MS, call f/v at T+118bp. At the T+118bp pricing level, CONCESSION IS FLAT.

PNC Financial Services (A3/BBB+/A-)
-PNC 5.423% due 01/25/41 nc36 T+117bp (G116; $100.37) - $1.5bn pxd 01/21/26 +117

Goldman Sachs Group Inc (Baa2/BBB/BBB+)
-GS 6.750% due 10/01/37 (bullet) T+120bp (G109; $111.51) - $5.5bn pxd SEPT 2007

Seniors:

Goldman Sachs Group Inc (A2/BBB+/A)
-GS 5.065% due 01/21/ 37 nc36 T+85bp (G84; $100.08) - $4.5bn pxd 01/15/26 +90

Morgan Stanley (A1/A-/A+)
-MS 4.892% due 10/22/36 nc35 T+83bp (G83; $98.94) - $3bn pxd 10/17/25 +90

PNC Financial Services (A3/A-/A)
-PNC 5.575% due 01/29/36 nc35 T+80bp (G86; $104.06) - $1.75bn pxd JAN 2025 +98

FINAL BOOK:

$2.5bn 15nc10 sub - $7.50bn (3.00x) - PEAK $10.000bn

[FIFTH THIRD]

Fifth Third Bancorp (FITB) exp Baa1/BBB+/A- (n/s/s) US$2bn SEC Registered 2-part sr notes (6nc5 fixed to float due 4/29/32 and 11nc10 fixed to float due 1/29/37). Optional Redemption: 6nc5: Non-Call Period of 6-Months, Make Whole Call, Par Call 1-Year Prior to Maturity, Par Call Beginning 1-Month Prior to Maturity (3/29/32); 11nc10: Non-Call Period of 6-Months, Make Whole Call, Par Call 1-Year Prior to Maturity, Par Call Beginning 3-Months Prior to Maturity (10/29/36). Denoms: $2,000 x $1,000. Sales into Canada: Yes – via Exemption. UOP: gcp. Pricing 1/26. settle 1/29 (T+3). CUSIP: 6nc5: 316773DN7, 11nc10: 316773DP2. ISIN: 6nc5: US316773DN70, 11nc10: US316773DP29. 

VIA BofA/FITB/GS/MS (B&D) joint active books.

Announced with benchmark size, we heard initial thoughts as 6nc5: T+100-105, 11nc10: T+120-125.

Guidance came in at 6nc5 T+75#, 11nc10 T+93#.

Ultimately, a $2bn deal priced as follows:

$1bn 4.566% 4/29/32 100.00 4.566% T+75. MW+15. Back-end: SOFR+95.0.

$1bn 5.141% 1/29/37 100.00 5.141% T+93. MW+15. Back-end: SOFR+124.0.

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

-FITB 5.631% due 01/29/32 nc31 T+75bp (G74; $104.73) - $1bn pxd JAN 2024

*** 6nc5: Jan ‘32nc31 G74, add 1bp for curve call f/v at T+75bp. At the T+75bp pricing level, 6nc5 CONCESSION IS FLAT.

*** 11nc10: 6nc5 f/v at T+75bp, add 20bp for IPT curve gets f/v to T+95bp. At the T+93bp pricing level, 11nc10 CONCESSION IS NEG 2BP.

COMPS AWAY:

Truist Financial Corp (Baa1/A-/A-)
-TFC 4.597% due 01/27/32 nc31 T+73bp (G72; $100.21) - $1.25bn pxd 01/22/26 +75
-TFC 4.964% due 10/23/36 nc35 T+94bp (G94; $98.61) - $1.25bn pxd 10/20/25 +98

Huntington Bancshares (Baa1/BBB+/A-)
-HBAN 4.623% due 01/28/32 nc31 T+78bp (G77; $100.11) - $1bn pxd 01/23/26 +77
-HBAN 5.709% due 02/02/35 nc34 T+84bp (G97; $104.26) - $1.25bn pxd JAN 2024

FINAL BOOKS:

$1bn 6nc5 - $3.400bn (3.40x) - PEAK $5.000bn

$1bn 11nc10 - $5.000bn (5.00x) - PEAK $6.500bn

[NEW YORK LIFE GF]

New York Life Global Funding (NYLIFE) exp Aa1/AA+/AAA (s/s/s) US$1bn 144A/Reg S 3y FXD and/or FLOATING sr secured FA-Backed due 2/2/29. Funding Agreement Provider: New York Life Insurance Company. Floating Rate Interest: Compounded SOFR (as defined in the Offering Memorandum) plus the Spread. Floating Rate Observation Period: The date two U.S. Government Securities Business Days before each Interest Payment Date. Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: To purchase one or more Funding Agreements from New York Life Insurance Company. Pricing 1/26. Settle 2/2 (T+5). 

VIA BofA/JPM (B&D)/Seelaus/SMBC joint active books.

Announced as a benchmark, we heard initial price thoughts as T+60 area and SOFR equiv.

Guidance came in at 3y FXD T+40#, 3y FRN SOFR+57#.

Ultimately, a $1bn deal priced as follows:

$300m 2/2/29 FRN at SOFR+57, at 100.

$700m 4.05% 2/2/29 99.997 4.051% T+40. 

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

-NYLIFE 4.150% due 07/25/28 T+39bp (G35; $100.41) - $700M pxd Jul 2025

-NYLIFE 4.250% due 01/09/31 T+55bp (G55; $99.47) - $650M pxd 01/05/26 +58

** Outstanding NYLIFE Jan 31s G55; NYLIFE and NWMLIC 2s/5s both worth about ~20bp, so call 3s/5s curve 15bp. Jan 31s G55 minus 15bp 3s/5s curve to get to T+40bp f/v. At the T+40bp pricing level, CONCESSION IS FLAT.

Comps away:

Northwestern Mutual Global Funding (Aa1/AA+/AAA)
-NWMLIC 4.125% due 08/25/28 T+39bp (G35; $100.34) - $500M pxd 08/18/25 +40

-NWMLIC 4.300% due 01/13/31 T+54bp (G54; $99.73) - $600M pxd 01/06/26 +58

Massmutual Global Funding (Aa3/AA+/AA+)
-MASSMU 4.000% due 01/22/29 T+44bp (G44; $99.72) - $600M pxd 01/14/26 +50

-MASSMU 4.550% due 05/07/30 T+57bp (G62; $100.64) - $800M pxd May 2025

Met Life Global Funding I (Aa3/AA-/AA-)
-MET 4.150% due 08/25/28 T+45bp (G41; $100.26) - $600M pxd 08/19/25 +45

-MET 4.350% due 01/12/31 T+59bp (G59; $99.74) - $750M pxd 01/05/26 +65

Met Tower Global Funding (Aa3/AA-/AA-)
-MET 4.000% due 01/14/29 T+46bp (G46; $99.68) - $600M pxd 01/07/26 +52

-MET 4.200% due 09/16/30 T+56bp (G58; $99.28) - $500M pxd 09/09/25 +65

FINAL BOOKS:

$300m 3y FRN  - $550m (1.83x) - PEAK $900m

$700m 3y FXD – $1.200bn (1.71x) - PEAK $1.500bn

[TYCO ELECTRONICS]

Tyco Electronics Group S.A. (TEL) exp A3/A-/A- (s/s/s) US$750m SEC registered 2-part sr notes (tap of TEL 4.50% 2/9/31 - $450m outstanding, and new 10y due 2/9/36). MWC (+15 on tap) then 1mo par call on tap (1/9/31) and 3mos on 10y (11/9/35). 101 CoC. Guarantors: TE Connectivity plc and TE Connectivity Switzerland Ltd. Denoms: 2,000 x 1,000. Sales into Canada: Yes, via exemption. UOP: General corporate purposes, including the repayment of outstanding debt, including the 3.7% 2026 notes and 4.500% 2026 notes. Pricing 1/26. Settle 2/9 (T+10). Cusip 2031 tap: 902133BC0, 10y: 902133BF3. ISIN: 2031 tap: US902133BC02, 10y: US902133BF33. 

VIA BNP (B&D on 10y)/DB/Citi/GS (B&D on tap) joint active books.

Announced as a benchmark, we heard initial price thoughts as 2031 tap T+70 area, 10y T+95 area.

Guidance came in at 2031 tap T+48#, new 10y T+70#.

Ultimately, a $750m deal priced as follows:

$200m tap of 4.50% 2/9/31 at 100.907 4.294% T+48. MW+15. New outstanding $650m.

$550m 4.875% 2/9/36 99.718 4.911% T+70. MW+15.

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

-TEL 4.500% due 02/09/31 T+46bp (G46; $100.98) - $450M pxd Apr 2025

-TEL 5.000% due 05/09/35 T+61bp (G66; $101.27) - $450M pxd Apr 2025

** 31s TAP - Outstanding Feb 31s T46. At the T+48bp pricing level,  2031 TAP CONCESSION IS 2BP.

** new 10y - outstanding May 35s G66; plus curve, call new 10y f/v T+70bp. At the T+70bp pricing level, 10Y CONCESSION IS FLAT.

Comps away:

Amphenol Corp (A3/A-/N/A)
-APH 4.125% due 11/15/30 T+45bp (G46; $99.38) - $1B pxd 10/27/25 +53

-APH 4.400% due 02/15/33 T+57bp (G56; $98.92) - $1.25B pxd 10/27/25 +63

-APH 4.625% due 02/15/36 T+63bp (G62; $98.27) - $1.6B pxd 10/27/25 +65

FINAL BOOKS:

$200m 2031 tap - $860m (4.30x) - PEAK $1.300bn

$550m 10yr  - $1,800 3.27 $2,700

[OLD NATIONAL]

Old National Bancorp (ONB), exp security rating Baa1 (neg) by Moody's, US$450m (up from $300m) SEC registered 10nc5 fixed to floating subordinated notes due 2/15/36. Optional Redemption: non-call 5-years at 100. Coupon Frequency: Semi-annual during fixed rate, quarterly during floating rate. Denoms: $1,000 x $1,000. UOP: gcp. Pricing 1/26. Settle 1/29 (T+3). CUSIP / ISIN: 68003DAA3 / US68003DAA37.

VIA KBW, A Stifel Co (B&D)/MS joint books. 

Announced as with $300m, we heard initial price thoughts as T+230 area.

Guidance came in at T+195#.

Ultimately, a $450m deal priced as follows:

$450m 5.768% 2/15/36 100.00 5.768% T+195. Back-end: SOFR+220.0.

As for r/v, the last time ONB issued in the primary market was in 2014, when it priced a $175m 10-year bond that matured in 2024. With no outstanding bond remaining, this is a re-debut trade, so CONCESSION IS N/A.

FINAL BOOKS:
$450m 10nc5 sub - $2.00bn (4.44x)

[M&A TODAY]

Leidos Inc "LDOS" (Baa2/BBB) entered an agreement to acquire ENTRUST Solutions Group from Kohlberg for $2.4bn.

Leidos plans on funding the purchase price with $500m in cash on hand, $500m in commercial paper, and $1.4bn in new debt in which they have obtained a $1.4bn bridge facility with Citi. LDOS last issued a $1bn deal in February 2025 and last issued an M&A deal in May 2020 of $1.75bn for their $1.65bn acquisition of Dynetics Inc.

The transaction is expected to close by Q2 2026.

Citi is the financial advisor with Davis Polk & Wardwell LLP providing legal counsel to Leidos.

https://investors.leidos.com/news-releases/news-release-details/leidos-acquire-power-design-firm-entrust-bolstering-its-energy

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001336920/000119312526021627/d11290d8k.htm

https://investors.leidos.com/static-files/e71c6dae-d369-4a5d-9b50-d2a831e73864

[NEW MANDATES & MARKETING]

Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (the “Issuer”), rated Baa2 (Stable) by Moody's, BBB (Stable) by S&P and BBB (Stable) by Fitch, has mandated Citigroup, HSBC (B&D), Mandiri Securities, MUFG, SMBC Nikko and Standard Chartered Bank (together, the “Joint Lead Managers”) to arrange a series of fixed income investor meetings across Asia, EMEA and the United States commencing on January 26, 2026. A USD-denominated 144A / Reg S senior unsecured bond offering with expected tenor(s) of 5- and/or 10-year FXD may follow, subject to market conditions

FCA / ICMA stabilisation applies.