Primary comes to life with AIG, BNG, Westpac deals; spreads continue to widen in secondary

By Aleesia Forni

Virginia Beach, July 7 – American International Group Inc., Bank Nederlandse Gemeenten NV, Westpac Banking Corp. and CBS Corp. sold bonds on Tuesday, ending the primary drought the investment-grade market has seen in recent sessions.

AIG nabbed an order book that was more than two times oversubscribed for its new $2.5 billion three-tranche offering.

Also on Tuesday, Bank Nederlandse Gemeenten sold an upsized $850 million offering of two-year floaters.

Westpac Banking and CBS were each in the market with upsized $800 million offerings.

The session also hosted Florida Gas Transmission Co. LLC, which priced $500 million of 10-year senior notes.

More than $5.4 billion of supply priced during the trading day in the primary’s first signs of life since June 26.

Meanwhile, spreads in the high-grade secondary market continued to leak wider on Tuesday.

The Markit CDX North American Investment Grade series 23 index was flat at a spread of 71 basis points.

Bank and financial paper was about 1 bp to 2 bps wider overall on the day, a market source said.

In the secondary market, Bank of America Corp.’s 4% notes due 2025 widened 6 bps, while JPMorgan Chase & Co.’s 3.125% notes due 2025 eased 10 bps, and Morgan Stanley’s 2.65% notes due 2020 widened 8 bps in trading.

© 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.