EIB prices $3 billion offering; spreads ease; BofA trades better in secondary

By Aleesia Forni

Virginia Beach, Aug. 28 – The investment-grade primary market saw the European Investment Bank bring to market an offering of seven-year notes on Thursday.

The $3 billion issue sold in line with price talk, which was set in the area of mid-swaps plus 9 basis points.

In other market news, MetLife, Inc. entered into a remarketing agreement with Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas for two tranches of series E senior component debentures.

EIB’s new offering doubled the week’s supply of new investment-grade bond issuance, bringing it to nearly $6 billion.

Looking ahead, the market is expected to remain muted on Friday heading into the extended weekend.

Sources are predicting primary activity to resume in September following the Labor Day holiday.

In secondary market happenings, investment-grade bond spreads eased during the session.

The Markit CDX North American Investment Grade series 22 index was 1 bp wider on Thursday at a spread of 56 bps.

Meanwhile, Bank of America Corp.’s bond issue was quoted 5 bps better on Thursday at 70 bps bid, 68 bps offered.

Pricing on the $1 billion of 1.7% senior notes due 2017 was at a spread of Treasuries plus 80 bps.

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