Wells Fargo, Rockwell issue bonds; bank, financial paper mixed; spreads leak wider

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 11 – Wells Fargo & Co. and Rockwell Automation Inc. gave the investment-grade primary market its only action during the session on Wednesday.

Wells Fargo was in the market with a $2.5 billion 10-year notes offering, while Rockwell Automation sold senior notes in five- and 10-year tranches.

At its peak, the book for Rockwell Automation’s new issue reached $6.8 billion of orders before closing at around $4.6 billion, and the deal priced around 30 basis points tight of initial guidance.

In forward calendar news, the European Bank for Reconstruction and Development (EBRD) set price talk for a planned seven-year notes offer, and Apollo Investment Corp. tapped leads to arrange a series of investor meetings.

In total, the high-grade primary market has seen roughly $24.7 billion of new issuance this week.

“The market [is] very strong,” one market source said, adding that the quieter primary session was “just a lull today.”

Bank and financial paper was mixed over the day.

Citigroup Inc.’s 3.75% notes due 2024 firmed 5 bps in the secondary market.

JPMorgan Chase & Co.’s 3.625% notes due 2024 traded flat.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 were stable.

The Markit CDX North American Investment Grade index leaked 1 bp wider to a spread of 67 bps on Wednesday.

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