Apple upsizes; Capital One brings deal; Apple, Citigroup steady; Goldman firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 2 – The investment-grade bond market kicked off the new month on a positive note on Monday, with Apple Inc. and Capital One pricing new deals during the session.

Apple came to market with an upsized $6.5 billion offering of notes sold in five tranches.

Also on Monday, Capital One Financial Corp. and Capital One NA issued $3 billion of bonds in three parts.

In forward calendar news, Oesterreichische Kontrollbank AG, Japan Bank for International Cooperation and European Investment Bank announced plans to price bonds later this week.

With $9.5 billion of supply priced during the first session of the week, the primary is on pace to reach expectations of $25 billion to $30 billion of new issuance this week.

High-grade corporate bonds traded mostly flat to tighter over the session, sources said.

The Markit CDX North American Investment Grade index firmed 2 basis points to a spread of 69 bps.

Apple’s existing bonds traded mostly unchanged in the secondary market.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 tightened about 4 bps to start the week.

Citigroup Inc.’s 3.75% notes due 2024 were flat.

Investment-grade bank and brokerage CDS prices were unchanged on Thursday, according to a market source.

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