Primary quiet after jobs print; ING, Hilltop prep deals; JPMorgan, Goldman, BofA paper stable

By Aleesia Forni and Cristal Cody

Virginia Beach, April 6 – ING Group and Hilltop Holdings Inc. announced plans to price new bond offerings on Monday, as the high-grade bond market got off to a quiet start to open the first full week of April.

ING said that it will conduct a roadshow this week ahead of the planned perpetual offering of contingent convertible securities, while Hilltop is eyeing an issue of 10-year notes.

Meanwhile, the primary was empty of new issuance during the session following a poor U.S. jobs report on Friday, with the Labor Department reporting that the U.S. economy added 126,000 jobs during the month of March, well below the 245,000 forecast.

Sources had predicted a slow week for the primary prior to the jobs report with companies heading into blackouts ahead of earnings season.

Only around $10 billion of new issuance is expected to price this week.

“Could see some [supply] tomorrow, but I’m not expecting too much,” a market source said.

Secondary activity was quiet over the session with bonds heading out mostly flat to tighter, according to market sources.

The Markit CDX North American Investment Grade series 23 index firmed 1 basis point to a spread of 62 bps.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded flat over the afternoon.

Goldman Sachs Group Inc.’s senior notes (Baa1/A- /A) reopened in late March were unchanged.

Bank of America Corp.’s 4% notes due 2025 were flat over the session.

ING plans CoCos

ING Group announced plans to conduct a roadshow during the April 6 week ahead of an offering of perpetual tier 1 contingent convertible securities, according to a company news release.

The securities will be converted into ordinary shares if the company’s phased-in CET 1 ratio falls below 7%.

The global financial institution is based in Amsterdam.

Hilltop plans 10-years

Hilltop Holdings announced in a Monday press release that it plans to sell $125 million of 10-year senior notes via Rule 144A and Regulation S.

Proceeds will be used to redeem all of the company’s non-cumulative perpetual preferred stock, series B, at a liquidation value of $114.1 million and for general corporate purposes.

The prospective issuer is a Dallas-based diversified financial holding company specializing in banking, mortgage origination, financial counseling and insurance.

JPMorgan flat

JPMorgan Chase’s 3.125% notes due 2025 headed out unchanged at 122 bps bid on Monday afternoon, a market source said.

The notes were quoted early in the day 3 bps softer at 118 bps offered.

JPMorgan sold $2.5 billion of the notes (A3/A/A+) on Jan. 16 at Treasuries plus 145 bps.

The financial services company is based in New York City.

Goldman stable

Goldman Sachs’ 2.6% notes due 2020 were unchanged at 101 bps bid, a market source said.

Goldman priced a $700 million add-on to the issue on March 25 at Treasuries plus 112 bps. The original $1 billion offering of notes priced at 135 bps over Treasuries on Jan. 20.

Goldman’s 3.5% notes due 2025 were unchanged on the day at 141 bps bid, according to the market source.

The 10-year notes were reopened on March 25 in an $800 million tap at Treasuries plus 145 bps.

Goldman originally sold $1.7 billion of the notes at 170 bps over Treasuries in the Jan. 20 offering.

The financial services company is based in New York City.

Bank of America steady

Bank of America’s 4% notes due 2025 traded unchanged on Monday at 198 bps bid, a source said.

The company sold $2.5 billion of the notes (Baa2/A-/A) on Jan. 16 at Treasuries plus 225 bps.

Bank of America is a financial services company based in Charlotte, N.C.

Bank/broker CDS costs flat to lower

Investment-grade bank and brokerage CDS prices were flat to lower on Monday, according to a market source.

Bank of America’s CDS costs were unchanged at 64 bps bid, 67 bps offered. Citigroup Inc.’s CDS costs were also flat at 73 bps bid, 76 bps offered. JPMorgan Chase’s CDS costs fell 1 bp to 62 bps bid, 65 bps offered. Wells Fargo & Co.’s CDS costs were flat at 41 bps bid, 44 bps offered.

Merrill Lynch’s CDS costs were unchanged at 67 bps bid, 72 bps offered. Morgan Stanley’s CDS costs were unchanged at 74 bps bid, 77 bps offered. Goldman Sachs Group’s CDS costs were flat at 84 bps bid, 87 bps offered.

Stephanie N. Rotondo and Paul A. Harris contributed to this review.

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