Morning Commentary: UBS paper improves; HSBC unchanged; Citigroup notes ease

By Cristal Cody

Eureka Springs, Ark., April 7 – Investment-grade bank and financial paper opened mixed in early secondary trading on Thursday.

UBS Group Funding (Jersey) Ltd.’s 4.125% senior notes due 2026 improved 3 basis points but traded weaker than issuance.

HSBC Holdings plc’s 4.3% senior notes due 2026 were unchanged.

Citigroup Inc.’s 3.7% subordinated notes due 2026 softened 1 bp.

On Wednesday, $20.24 billion of investment-grade issues were traded, compared to $19.9 billion on Tuesday and $14.66 billion on Monday, according to Trace.

UBS tightens

UBS Group Funding’s 4.125% notes due 2026 traded 3 bps tighter at 239 bps offered early Thursday, according to a market source.

The company sold $2 billion of the notes (BBB+/A) on March 29 at a spread of Treasuries plus 235 bps.

The issuer is a subsidiary of Zurich-based financial services company UBS Group AG.

HSBC stable

HSBC Holdings’ 4.3% notes due 2026 were unhanged in the secondary market at 216 bps offered, a source said.

HSBC sold $3 billion of the notes (A1/A/AA-) on March 1 at a spread of 250 bps plus Treasuries.

The banking and financial services group is based in London.

Citigroup eases

Citigroup’s 3.7% notes due 2026 eased 1 bp to 156 bps offered, a market source said.

Citigroup sold $2 billion of the notes (Baa1/BBB+/A) on Jan. 5 at a spread of Treasuries plus 148 bps.

The financial services company is based in New York.

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