Commentary & Deal Flow

Issuance rebounded today after yesterday marked the lowest daily volume on a five-plus-deal day since 2020. Five issuers hit the market, led by banks, which accounted for more than 80% of total supply. Two Yankee banks, Mizuho and UBS, announced transactions overnight, while Citigroup priced a $1bn $1,000-par PerpNC5, following its $800m $25-par PerpNC5 on January 27. Total bank issuance reached $8.05bn on the day.

Non-bank issuance included $1.5bn from MPLX and $300m from pipeline issuer HTGC, bringing total daily supply to $9.85bn.

UBS dominated the session with a $5.25bn 4-part transaction, representing more than half of the day’s volume and marking the largest deal in the bank’s history. The transaction surpasses UBS’s prior $5bn issuance record, last reached on September 18, 2025.

With Citigroup’s transaction, all 6-Pack banks have now issued year-to-date. Citigroup remains the only bank among the group not to have issued senior notes; its most recent deal was a $2.5bn PerpNC5 on December 3, 2025, and its last senior issuance totaled $6.5bn on September 4, 2025.

Weekly issuance now stands at $61.05bn, exceeding $60bn and marking the largest February issuance week on record.

MIZUHO’s 11nc10 at T+85 ranks as the lowest Yankee 11nc10 back to 2020:

MIZUHO’s 6nc5 at T+70 ties as the lowest Yankee 6nc5 with RY on 10/28/25 back to 2020:

Here’s Today’s Rundown:

[UBS]

UBS Group AG (UBS) exp A2/A-/A US$5.25BN 144A/Reg S 4-part senior unsecured 144a/Reg S (L4nc3 FTF due 4/10/30, L4nc3 FRN due 4/10/30, 6.5nc5.5 FTF due 8/10/32 and 11.5nc10.5 FTF due 8/10/37). Optional Redemption: Par call: 1-year prior to maturity. Floating rate commencement dates: 4nc3 FTF 4/10/29,  6nc5 FTF 8/10/31 and FTF 8/10/36. Reference Rate: Compounded Daily SOFR. Interest Payment Frequency: 4nc3 Fixed: Semi-Annual on October 10 and April 10 in each year, from (and including) October 10, 2026 (long first coupon) to (and including) the Floating Rate Commencement Date, then Quarterly; 4nc3 FRN: Quarterly on July 10, October 10, January 10 and April 10 in each year, from (and including) July 10, 2026 (long first coupon) to (and including) the Maturity Date, as adjusted (except in the case of the Maturity Date) in accordance with the Business Day Convention; 6.5nc5.5 and 11.5nc10.5: Semi-Annual on February 10 and August 10 in each year, from (and including) August 10, 2026 to (and including) the Floating Rate Commencement Date, then Quarterly. Special Redemption: At the Issuer's option at par upon a Tax Event or Ineligibility Event, as defined and more particularly described in Condition 6(b) (Redemption and Purchase – Early Redemption due to a Tax Event) and Condition 6(e) (Redemption and Purchase – Early Redemption due to Ineligibility Event) in the General Terms and Conditions in the Base Prospectus (as defined below) (the "General Terms and Conditions"). The Early Redemption Date being any Business Day following the Tax Event, subject to the Issuer giving not less than 10 and not more than 35 days' prior notice. Denoms: USD 200k x USD 1k. Sales into Canada: Yes - Exemption. Exchange: SIX Swiss Exchange. Pricing 2/5. Settle 2/10 (T+3).  

VIA  VIA UBS (B&D) sole books.

Announced with benchmark size, final size came in at $5.25bn with price progression as follows:

L4nc3 FRN - IPT Seqv; GDNC SOFR+84#; PXD $500m 4/10/30 FRN at SOFR+84, at 100. 

L4nc3 FTF - IPT T+90-95; GDNC T+67#; PXD $2bn 4.210% 4/10/30 100.00 4.210% T+67. Back-end: SOFR+84.0. 

6.5nc5.5 - IPT T+105-110; GDNC T+85#; PXD $1.25bn 4.588% 8/10/32 100.00 4.588% T+85. Back-end: SOFR+105.0. 

11.5nc10.5 - IPT T+120-125; GDNC T+100#; PXD $1.5bn 5.199% 8/10/37 100.00 5.199% T+100. Back-end: SOFR+134.0. 

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

-UBS 4.151% due 12/23/29 nc28 T+68bp (G61; $99.93) - $1.25bn pxd 09/18/25 +60
-UBS 3.126% due 08/13/30 nc29 T+65bp (G64; $96.48) - $1.5bn pxd AUG 2019
-UBS 4.398% due 09/23/31 nc30 T+73bp (G76; $99.61) - $1bn pxd 09/18/25 +73
-UBS 4.844% due 11/06/33 nc32 T+105bp (G86; $100.15) - $2bn pxd 11/03/25 +95
-UBS 5.010% due 03/23/37 nc36 T+94bp (G92; $98.77) - $1.75bn pxd 09/18/25 +90 

*** 6nc5: Sept ‘31 nc30 G76, IPT 3s/5s curve is 15bp, add 7bp for ‘31/’32 curve gets f/v to T+83bp. At the T+85bp pricing level, 6nc5 CONCESSION IS 2BP.

*** 4nc3: Dec ‘29 nc28 G61, add 2bp for curve = 63bp. 6nc5 f/v at T+83, take away 15bp for IPT curve = 68bp. Going midpoint call f/v at T+65bp. At the T+67bp pricing level, 4nc3 CONCESSION IS 2BP.

*** 11nc10: 6nc5 f/v at T+83, add 15bp for IPT curve gets f/v to T+98bp. At the T+100bp pricing level, 11nc10 CONCESSION IS 2BP.

COMPS AWAY:

Lloyds Banking Group PLC (A3/A-/A+)
-LLOYDS 4.241% due 02/10/30 nc29 T+58bp (G58; $100.26) - $1.25bn pxd 02/03/26 +60
-LLOYDS 4.425% due 11/04/31 nc30 T+71bp (G73; $99.77) - $1.5bn pxd 10/28/25 +82
-LLOYDS 4.943% due 11/04/36 nc35 T+92bp (G92; $98.48) - $1.25bn pxd 10/28/25 +97

HSBC Holdings PLC (A3/A-/A+)
-HSBC 4.619% due 11/06/31 nc30 T+73bp (G75; $100.54) - $2.25bn pxd 10/30/25 +90
-HSBC 5.133% due 11/06/36 nc35 T+91bp (G91; $100.01) - $2.25bn pxd 10/30/25 +105

DNB Bank ASA (A2/A)
-DNBNO 4.384% due 11/04/31 nc30 T+70bp (G72; $99.67) - $1bn pxd 10/27/25 +77

ING Groep NV (Baa1/A-/A+)
-INTNED 5.525% due 03/25/36 nc35 T+81bp (G86; $103.60) - $1bn pxd MAR 2025

FINAL BOOKS:

$500m L4nc3 FRN - $1.500bn (3.00x) - PEAK $1.700bn

$2.0bn L4nc3 FTF - $3.700bn (1.85x) - PEAK $4.850bn

$1.25bn 6.5nc5.5 FTF - $3.200bn (2.56x) - PEAK $4.500bn

$1.5bn 11.5nc10.5 FTF - $4.550bn (3.03x) - PEAK $5.700bn

[MIZUHO]

Mizuho Financial Group Inc (MIZUHO) exp A1/A- (s/s) US$1.8bn SEC registered 3-part sr notes (6.25nc5.25 fixed rate reset and/or FRN due 5/12/32 and 11.25nc10.25 fixed rate reset due 5/12/37). Optional redemption dates: 5/12/31, 5/12/31, 5/12/36. Coupon reset: In the case of Fixed-to-Fixed Reset Rate Notes, if not redeemed on the Optional Redemption Date, the coupon resets to the 1-year Constant Maturity US Treasury from the H.15 Daily Update, plus initial spread. Denoms: 200,000 x 1,000. Listing: Luxembourg Stock Exchange (Euro MTF). Governing Law: NY Law. Sale into Canada: Yes - Exemption. UOP: Mizuho FG intends to use the net proceeds from the issuance and sale of each series of the Notes to make a loan that is intended to qualify as Internal TLAC under the Japanese TLAC Standard to Mizuho Bank, Ltd. Mizuho Bank, Ltd. intends to utilize such funds for its general corporate purposes. Pricing 2/5. Settle 2/12 (T+5). Cusip: 6.25nc5.25 FRR: 60687YDR7, 6.25nc5.25 FRN: 60687YDT3, 11.25nc10.25: 60687YDS5. ISIN: 6.25nc5.25 FRR: US60687YDR71, 6.25nc5.25 FRN: US60687YDT38, 11.25nc10.25: US60687YDS54.

VIA  Miz (B&D) sole active books. 

Announced as a benchmark, final size came in at $1.8bn with price progression as follows:

6.25nc5.25 FRN IPT - SOFR equiv; RVSD IPTs SOFR equiv,GDNC SOFR equiv; PXD $500m 5/12/32 FRN at SOFR+93, at 100.

6.25nc5.25 FRR  IPT - T+95-100; RVSD IPTs T+95 area ; GDNC T+70#; PXD $600m 4.438% 5/12/32 100.00 4.438% T+70 (reset).

11.25nc10.25 IPT - T+110-115; RVSD IPTs T+110 area; GDNC T+85#; PXD $700m 5.050% 5/12/37 100.00 5.050% T+85 (reset).

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

-MIZUHO 5.098% due 05/13/31 (NC 30) T+59bp (G66; $102) - $700m pxd FEB 2025

-MIZUHO 4.711% due 07/08/31 (NC 30) T+63bp (G68; $101) - $1.25bn pxd 6/26/25 +92

-MIZUHO 5.422% due 05/13/36 (NC 35) T+72bp (G76; $103) - $900m pxd FEB 2025

-MIZUHO 5.323% due 07/08/36 (NC 35) T+78bp (G81; $102) - $1.0bn pxd 6/26/25 +107

**6.25nc5.25 –  Outstanding Jul31nc30 G68; plus curve, call new 6.25nc5.25 f/v T+70bp. At the T+70bp pricing level, 6.25NC5.25 CONCESSION IS FLAT.

** 11.25nc10.25 - outstanding Jul 36nc35 G81; plus 2bp for curve = T+83bp. At the T+85bp pricing level, 11.25NC10.25 CONCESSION IS 2BP.

Comps away:

Sumitomo Mitsui Financial Group (A1/A-/N/A)

-SUMIBK 4.494% due 01/15/32 (NC 31) T+66bp (G66; $100) - $1.1bn pxd 1/5/26 +80

-SUMIBK 5.046% due 01/15/37 (NC 36) T+83bp (G82; $99) - $1.2bn pxd 1/5/26 +90

Mitsubishi UFJ Financial Group (A1/A-/N/A)

-MUFG 4.505% due 01/14/32 (NC 31) T+65bp (G65; $100) - $1.15bn pxd 1/5/26 +80

-MUFG 5.057% due 01/14/37 (NC 36)  T+83bp (G82; $100) - $1.5bn pxd 1/5/26 +90

FINAL BOOKS:
$500m 6.25nc5.25 FRN - $3.000bn (6.00x) - PEAK $4.000bn
$600m 6.25nc5.25 FRR - $2.200bn (3.67x) - PEAK $4.200bn
$700m 11.25nc10.25 FRR - $2.000bn (2.86x) - PEAK $4.200bn

[MPLX]

MPLX LP (MPLX) exp Baa2/BBB/BBB (s/s/s) US$1.5bn SEC registered 2-part sr notes (10y FXD due 4/1/36 and 30y FXD due 4/1/56). MWC then 3mos par call on 10y (1/1/36) and 6mos on 30y (10/1/55). Denoms: 2,000 x 1,000. Sale into Canada: Yes - Exemption. UOP: Net proceeds are expected to be used to repay MPLX’s outstanding $1,500 million aggregate principal amount of 1.750% senior notes due March 2026 at maturity and intend to use the remaining net proceeds, if any, for general partnership purposes, which may include capital expenditures and working capital. Pricing 2/5. Settle 2/12 (T+5). Cusip. 10y: 55336VCE8, 30y: 55336VCF5. ISIN: 10y: US55336VCE83, 30y: US55336VCF58. 

VIA  Barc/Citi (B&D on 30y)/MUFG/RBC (B&D on 10y) joint active books. 

Announced as a benchmark, we heard initial price thoughts as 10y T+140 area, 30y T+160 area.

Guidance came in at 10y T+113#, 30y T+135#.

Ultimately, a $1.5bn deal priced as follows:

$1bn 5.30% 4/1/36 99.678 5.340% T+113. MW+20.

$500m 6.10% 4/1/56 98.453 6.213% T+135. MW+25.

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

-MPLX 5.400% due 04/01/35 T+103bp (G110; $100.8) - $1B pxd Mar 2025
-MPLX 5.400% due 09/15/35 T+106bp (G109; $100.6) - $1.5B pxd 08/07/25 +130
-MPLX 6.200% due 09/15/55 T+133bp ($99.5) - $1B pxd 08/07/25 +150

** 10yr -  outstanding Apr 35s G110 and Sep 35s G109; plus curve, call new 10yr f/v T+113bp. At the T+113bp pricing level, 10Y CONCESSION IS FLAT.

** 30yr - outstanding Sep 55s T+133bp, call new 30y f/v T+133.

Though some have argued that levels have widened out midday and called concession flat, we will go with the pre-announcement level. Therefore, at the T+135bp pricing level, 30Y CONCESSION IS 2BP.

Comps away:

Enbridge Inc (Baa2/BBB+/BBB+)
-ENBCN 5.200% due 11/20/35 T+91bp (G91; $100.2) - $500M pxd 11/17/25 +110
-ENBCN 5.950% due 04/05/54 T+99bp ($100.7) - $1.15B pxd Apr 2024

Kinder Morgan Inc (Baa2/BBB+/BBB+)
-KMI 5.850% due 06/01/35 T+77bp (G83; $106.1) - $750M pxd Apr 2025
-KMI 5.950% due 08/01/54 T+104bp ($100.0) - $750M pxd Jul 2024

Williams Companies Inc (Baa2/BBB+/BBB)
-WMB 5.150% due 03/15/36 T+94bp (G92; $99.6) - $1.25B pxd 01/05/26 +100
-WMB 5.950% due 03/15/56 T+104bp ($100.0) - $1B pxd 01/05/26 +112.5

Energy Transfer LP (Baa2/BBB/BBB)
-ET 5.350% due 01/15/36 T+110bp (G109; $100.0) - $1B pxd 01/12/26 +118
-ET 6.300% due 01/15/56 T+141bp ($99.8) - $1B pxd 01/12/26 +148

Oneok Inc (Baa2/BBB/BBB)
-OKE 5.400% due 10/15/35 T+104bp (G107; $100.8) - $1B pxd 08/06/25 +122
-OKE 6.250% due 10/15/55 T+133bp ($100.2) - $1.25B pxd 08/06/25 +147

Targa Resources Corp (Baa2/BBB/BBB)
-TRGP 5.400% due 07/30/36 T+112bp (G107; $100.2) - $1B pxd 11/06/25 +132
-TRGP 6.125% due 05/15/55 T+125bp ($99.6) - $1B pxd Feb 2025

Marathon Petroleum Corp (Baa2/BBB/BBB)
-MPC 5.700% due 03/01/35 T+96bp (G104; $103.5) - $900M pxd Feb 2025
-MPC 5.000% due 09/15/54 T+129bp ($84.0) - $400M pxd Sep 2014

Western Midstream Operatoring, LP (Baa3/BBB-/BBB-)
-WES 4.800% due 03/01/31 T+101bp (G100; $100.0) - $600M pxd 12/01/25 +113
-WES 5.500% due 12/15/35 T+130bp (G130; $99.6) - $600M pxd 12/01/25 +148

FINAL BOOKS:

$1bn 10yr - $2.600bn (2.60x) - PEAK $4.400bn

$500m 30yr - $1.500bn (3.00x) - PEAK $2.700bn

[CITI]

Citigroup Inc (C), exp issue ratings Ba1/BB+/BBB-/BBBH (s/s/s/s), US$1bn SEC registered $1,000 par PerpNC5 fixed rate reset non-cumulative pfd, Series JJ. Reset Date: May 15, 2031 (the “First Reset Date”) and each date falling on the fifth anniversary of the preceding reset date. Dividends: On the 15th of each February, May, August, and November (each date for payment of dividends, a “dividend payment date”) (i) from, and including, the date of issuance of the Series JJ preferred stock to, but excluding, May 15, 2031 (the “First Reset Date”), at an annual rate of [ ]% on the liquidation preference amount of $25,000 per share of Series JJ preferred stock (equivalent to $1,000 liquidation preference per depositary share), quarterly in arrears, beginning on May 15, 2026 and (ii) from, and including, the First Reset Date, for each reset period, at an annual rate equal to the five-year treasury rate as of the most recent reset dividend determination date plus [ ]% on the liquidation preference amount of $25,000 per share of Series JJ preferred stock (equivalent to $1,000 liquidation preference per depositary share), quarterly in arrears, beginning on August 15, 2031. Optional Redemption: Citigroup may redeem the Series JJ preferred stock in whole at any time or in part, from time to time, on any dividend payment date on or after the First Reset Date or in whole but not in part at any time within 90 days following a Regulatory Capital Event (as defined in the Preliminary Prospectus Supplement dated February 5, 2026), in each case at a cash redemption price equal to 100% of the liquidation preference, plus any declared and unpaid dividends and without accumulation of any undeclared dividends, to, but excluding, the redemption date. Denoms: 1,000 x 1,000. DRD/QDI: Yes. Listing: None. Day Count: 30/360. Sale into Canada: Yes - Wrapper. UOP: Citigroup expects to use the net proceeds from the sale of the depositary shares representing interests in the Series JJ preferred stock for general corporate purposes, which may include the partial or full redemption of outstanding shares of Citigroup preferred stock and related depositary shares, as applicable, and repurchases and redemptions of other outstanding securities of Citigroup and its subsidiaries, including Citigroup common stock. Pricing 2/5. Settle 2/12 (T+5). Cusip: 172967QK0. ISIN: US172967QK06. 

VIA Citi (B&D) sole active books.

Announced with benchmark size we heard initial thoughts as 6.75% area.

Went straight to launch at $1bn PerpNC5 at 6.50%.

Ultimately, a $1bn deal priced as follows:

$1bn, 6.50% at 100. Back-end reset: T+274.5.

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

-Citi 6.625% Perp nc 02/15/31 $101.50 (G254; 6.27% YTC) - $2.5bn pxd 12/3/25 b/e +300.1

*** NC Feb ‘31 6.27, add 3bp for curve = 6.30%.

Outstanding b/e 300.1 minus outstanding G254 = 46.1 * 0.2 = 9.22

Outstanding b/e 300.1 minus new issue b/e 274.5 = 25.6 * 0.3 =7.7bp.

Add 7.5bp for b/e differential gets f/v to 6.375%. At the 6.50% pricing level, CONCESSION IS 12.5P.

Didn't catch a book on this one… 

[HERCULES]

Hercules Capital Inc (HTGC), exp Baa2/BBB- (s/s) by Moody's/Fitch, US$300m SEC registered 3y FXD sr notes due 2/10/29. MWC then 1mo par call (1/10/29). 100 CoC. Denoms: 2,000 x 1,000. UOP: The company intends to use the net proceeds of this offering to fund investments in accordance with our investment objectives, to repay outstanding secured indebtedness under our financing arrangements and for other general corporate purposes. Pricing 2/5. Settle 2/10 (T+3). Cusip: 42711MAA1. ISIN: US42711MAA18. 

VIA GS (B&D)/SMBC joint active books.

Announced with $300m, we heard initial thoughts as T+225 area.

Went straight to launch at $300m 3y at T+205.

Ultimately, a $300m deal priced as follows

$300m 5.35% 2/10/29 99.272 5.617% T+205. MW+35.

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

-HTGC 6.000% due 06/16/30 T+213bp (G220; $100.44) - $350m pxd JUN 2025
*** Jun ‘30 G220, add 8bp for curve call new issue 5yr f/v at 228bp. Take away 30bp for 5s/3s curve gets f/v to T+198bp. At the T+205bp pricing level, CONCESSION IS 7BP.

FINAL BOOK:

$300m 3yr - $475m (1.58x) - PEAK $575m

[M&A TODAY]

SiTime Corp "SITM" (NR) entered an agreement to acquire the Timing Business from Renesas Electronics Corp "NECELE" (NR/BBB/BBB) in a cash and stock deal. The transaction consists of $1.5bn in cash and 4.13m SITM shares at a price based on the 10 day VWAP 3 days prior to completion with a floor of $308.6686 and a ceiling of $417.6104.  SITM shares closed on Wednesday at $347.96 giving the stock portion a value around $1.4bn. SITM shares opened this morning up about 20% to around $420.

SiTime plans on funding the $1.5bn cash portion with cash on hand and debt financing in which they obtained a $900m secured bridge facility with WFS.

The transaction is expected to close by Q4 2026.

Qatalyst Partners is the financial advisor with Wells Fargo providing debt financing and  Cooley LLP providing legal counsel to SiTime.

JP Morgan is the financial advisor with Sidley Austin LLP providing legal counsel to Renesas.

https://www.sitime.com/company/newsroom/press-release/sitime-acquire-renesas-timing-business

https://investor.sitime.com/static-files/6d60792d-88fb-4dd0-a5e3-b6507c075551

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001451809/000119312526037802/d35227d8k.htm

[SSA PRICED]

The Republic of Korea Aa2/AA/AA- (s/s/s) US$3bn SEC registered 3y and 5y sr notes. VIA BofA/Citi/CACIB/J.P. Morgan/KB Securities joint books. Pricing and Hedging UST Reference: 3-Year: T 3 ½ 01/15/29 (CT3) | 5-Year: T 3 ¾ 01/31/31 (CT5). New York Law. FCA / ICMA stabilization applies. First Pay: 8/12/26. Denoms: 200,000 x 1,000. UOP: Net proceeds will become part of the Foreign Exchange Stabilization Fund established and managed under the Korean Foreign Exchange Transactions Act. Taking IOIs, pricing expected tomorrow (2/5). CUSIP: 3y: 50064FAZ9, 5y: 50064FBA1. ISIN: 3y: US50064FZ71, 5y: US50064FBA12.

IPTs: 3-Year: CT3+13 area | 5-Year: CT5+16 area.
UPDATE: 3y spread set at T+9#, 5y spread set at T+12.
LAUNCHED: $1bn 3y at T+9, $2bn 5y at T+12.

PRICED:
$1bn 3.625% 2/12/29 99.837 3.683% T+9.
$2bn 3.875% 2/12/31 99.820 3.915% T+12.