Financials dominate primary; AIG, ANZ, Honda price; Citigroup, Bank of America stable

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 12 – Financial names dominated the primary market on Monday, with American International Group Inc., American Honda Finance Corp. and Australia and New Zealand Banking Group Ltd. among the names pricing new deals.

Nearly $6 billion of new issuance priced during the session, kicking off what is expected to be around a $30 billion week.

The session’s largest new issue was priced by American International Group, which sold a $2 billion offering of senior notes in 20- and 40-year tranches.

Also on Monday, Australia and New Zealand Banking Group priced $1.1 billion of three-year senior notes in fixed- and floating-rate tranches.

The session also saw American Honda Finance sell $750 million of one-year floating-rate notes.

Brookfield Asset Management Inc. and DDR Corp. were each in the market with upsized offerings of notes.

Meanwhile, Northeast Utilities priced $450 million of senior notes in two maturities on Monday, and Ecolab Inc. priced a $600 million offering.

KfW joined the forward calendar on Monday, setting price talk for a planned offering of three-year notes.

Investment-grade corporate bonds were mixed on Monday, while credit spreads softened, according to market sources.

Bank and financial paper was stable over the session, a source said.

Citigroup Inc.’s 3.75% notes due 2024 traded unchanged.

Bank of America Corp.’s 4% notes due 2024 were flat.

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