Santander, Kommuninvest enter primary market; EIB on deck; bank, financial paper mixed

By Aleesia Forni and Cristal Cody

Virginia Beach, April 14 – Santander Holdings USA Inc. and Kommuninvest i Sverige AB made their way to the investment-grade primary during another lackluster session for the market.

Santander priced a $1 billion offering of five-year bonds, garnering an order book that was around 1.5 times oversubscribed and pricing the new deal 10 bps tighter than price talk.

Kommuninvest was in the market with a $500 million offering of two-year notes.

Meanwhile, the European Investment Bank joined the forward calendar, announcing plans to sell a five-year global note this week.

In the preferred market, JPMorgan Chase & Co. sold a $2 billion offering of 5.3% $1,000-par series Z fixed-to-floating rate preferred stock.

So far, the investment-grade bond market has seen a quiet pace of issuance, with only $5.95 billion of supply entering the market this week.

Bank and financial paper was mixed in secondary trading on Tuesday, according to market sources.

JPMorgan Chase’s 3.125% notes due 2025 eased 2 bps after the company reported first-quarter income rose 12%.

Bank of America Corp.’s 4% notes due 2025 traded about 1 bp better.

Goldman Sachs Group Inc.’s 3.5% notes due 2025 were flat.

The Markit CDX North American Investment Grade series 23 index was 1 bp wider at a spread of 62 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.