Citi, JPMorgan, New York Life tap primary; Canadian pipeline thin; CDX eases; bonds flat

By Cristal Cody

Eureka Springs, Ark., Oct. 17 – High-grade issuers brought more than $6 billion of bonds on Monday, including deals as expected in the bank and financial sector.

Citigroup, Inc. priced $3 billion of 10-year notes.

JPMorgan Chase & Co. raised $2 billion in an offering of seven-year floating-rate notes.

Industrial and Commercial Bank of China Ltd., New York Branch brought $1 billion of five-year senior notes to market on Monday.

Also, New York Life Global Funding priced $750 million of three-year notes in fixed- and floating-rate tranches.

About $25 billion of high-grade supply is expected for the week, according to market sources.

Canadian primary activity is expected to stay thin over the next few sessions, with one small deal expected, a syndicate source said.

“The pipeline is looking pretty empty,” the source said. “Financials here don’t need any money. BMO just did a seven-year covered bond in Europe that was a really attractive deal, so if anybody needed money in the banks, they would have followed that. The market’s open in Canada, we just don’t have any issuers looking right now to take advantage of the good pricing and good demand.”

The Markit CDX North American Investment Grade index ended about 1 basis point softer at a spread of 76 bps.

CSX Corp.’s notes (Baa1/BBB+/) priced on Thursday were flat in earlier secondary trading.

Deutsche Bank AG’s 4.25% notes due 2021 were unchanged from Friday.

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