Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Citigroup Inc. > News item |
World Bank brings day’s lone new issue; spreads widen; bank paper mostly weaker; Verizon flat
By Cristal Cody and Aleesia Forni
Virginia Beach, July 31 – World Bank sold the session’s lone new bond offering on Thursday, as a negative tone to the day’s session kept most issuers on the sidelines.
The primary market saw the Washington, D.C.-based lender price $1.75 billion of long two-year bonds in line with price talk during the session.
This week’s investment-grade primary market has seen roughly $7.9 billion of supply, falling short of what sources had expected to be a $15 billion week.
The figure is also down sharply from last week’s total, when the high-grade primary market saw $18.35 billion of new paper price.
With the release of Friday’s nonfarm payroll data, new issuance in the high-grade space is likely wrapped up for the week.
Investment-grade bonds widened over Thursday’s session in light activity, according to market sources.
The Markit CDX North American Investment Grade series 22 index eased 4 basis points to a spread of 64 bps.
Bank and financial paper was mixed over the day, a source said.
Bank of America Corp.’s notes (Baa2/A-/A) headed out in the secondary market 1 bp tighter to 3 bps weaker, according to a market source.
Morgan Stanley & Co. Inc.’s senior notes (Baa2/A-/A-) traded mostly softer, a source said.
Verizon Communications Inc.’s 4.15% notes due 2024 were flat from the previous day, a source said.
World Bank prices
World Bank (International Bank for Reconstruction and Development) sold a $1.75 billion offering of 0.75% notes due Dec. 15, 2016 on Thursday at mid-swaps minus 9 bps, a market source said.
Pricing was at 99.861 to yield 0.81%.
The bookrunners were BofA Merrill Lynch and RBC Capital Markets LLC.
World Bank offers loans to developing countries and is based in Washington, D.C.
Bank of America mixed
Bank of America’s 2.65% notes due 2019 (Baa2/A-/A) widened 3 bps on Thursday to 77 bps offered, a market source said.
The bank sold $2.5 billion of the notes on March 27 at a spread of Treasuries plus 97 bps.
Bank of America’s 4% notes due 2024 firmed 1 bp to 123 bps offered, according to the market source.
The bank sold $2.75 billion of the notes in March at Treasuries plus 137 bps.
The financial services company is based in Charlotte, N.C.
Morgan Stanley eases
Morgan Stanley’s 2.375% notes due 2019 eased about 4 bps over the afternoon to 77 bps offered, according to a market source.
Morgan Stanley sold $2.5 billion of the notes at a spread of Treasuries plus 85 bps on July 17.
The financial services company is based in New York City.
Verizon unchanged
Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded flat at 118 bps offered on Thursday, a market source said.
Verizon sold $1.25 billion of the 10-year notes on March 10 at 140 bps plus Treasuries.
The telecommunications company is based in New York City.
Bank/brokerage CDS costs higher
Investment-grade bank and brokerage CDS prices were higher, according to a market source.
Bank of America’s CDS costs increased 3 bps to 72 bps bid, 76 bps offered. Citigroup Inc.’s CDS costs widened 3 bps to 72 bps bid, 76 bps offered. JPMorgan Chase & Co.’s CDS costs were also 3 bps higher at 59 bps bid, 63 bps offered. Wells Fargo & Co.’s CDS costs increased 3 bps to 50 bps bid, 55 bps offered.
Merrill Lynch’s CDS costs increased 3 bps to 76 bps bid, 79 bps offered. Morgan Stanley’s CDS costs ended 3 bps higher at 75 bps bid, 79 bps offered. Goldman Sachs Group, Inc.’s CDS costs widened 4 bps to 81 bps bid, 85 bps offered.
Paul Deckelman contributed to this review.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.