Morning Commentary: JPMorgan on deck with deal; AerCap offers notes; Hercules eyes bond tap

By Cristal Cody

Tupelo, Miss., Jan. 16 – Several issuers prepared early Tuesday to tap the high-grade bond market in the first session back after the long holiday weekend.

As expected, bank issuance is at the forefront.

JPMorgan Chase & Co. announced an offering of fixed-to-floating rate notes on Tuesday following its fourth-quarter earnings release on Friday.

Citigroup Inc. released its earnings on Tuesday, while Bank of America Corp. and Goldman Sachs Group, Inc. release earnings reports on Wednesday and Morgan Stanley releases earnings on Thursday.

The short market week is expected to see heavy bond issuance with syndicate sources forecasting about $25 billion to $30 billion of volume, according to market sources.

In other supply announced over the morning, AerCap Ireland Capital DAC and AerCap Global Aviation Trust plan a two-tranche sale of guaranteed senior notes.

Also, Hercules Capital, Inc. intends to return to the primary market to reopen its first investment-grade bonds for an offering. The company plans to tap its 4.625% notes due Oct. 23, 2022 (BBB-) via Citigroup Global Markets Inc., Jefferies & Co. and Wells Fargo Securities, LLC.

Hercules Capital also plans to hold fixed income investor calls on Tuesday and Wednesday.

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