Morning Commentary: UnitedHealth in high-grade deal pipeline; JPMorgan, Citigroup paper firms

By Cristal Cody

Eureka Springs, Ark., Dec. 15 – At least one high-grade issuer is in the bond deal pipeline on Thursday following the Federal Reserve’s rate hike in the previous session.

UnitedHealth Group Inc. plans a two-part notes offering.

Bank and financial paper were seen trading about 1 basis point to 2 bps tighter in the secondary market early Thursday.

JPMorgan Chase & Co.’s 2.972% notes due Jan. 15, 2023 improved about 2 bps but remain weaker than where the notes priced at the start of the month.

Citigroup, Inc.’s 2.9% notes due Dec. 7, 2021 that priced on Dec. 1 firmed about 2 bps to trade about 1 bp better than issuance.

Investment-grade secondary market volume totaled $16.7 billion on Wednesday, compared to $19.31 billion on Tuesday and $16.5 billion on Monday, according to Trace.

JPMorgan better

JPMorgan Chase’s 2.972% notes due 2023 traded about 2 bps tighter at 110 bps offered, according to a market source.

JPMorgan priced $1.5 billion of the notes (A3/A-) on Dec. 1 at a spread of Treasuries plus 108 bps.

The financial services company is based in New York City.

Citigroup improves

Citigroup’s 2.9% notes due 2021 firmed about 2 bps in secondary trading to 104 bps offered, according to a market source.

Citigroup priced $2.25 billion of the notes (Baa1/BBB+/A) on Dec. 1 at a spread of 105 bps over Treasuries.

The financial services company is based in New York.

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