Investment-grade bank, financial paper mostly flat; credit spreads firm; primary silent

By Aleesia Forni and Cristal Cody

New York, Dec. 22 – The investment-grade space was subdued on Tuesday as stocks rallied amid a stabilization in oil prices and the high-grade primary was again empty of any new issuance.

With the late-year slowdown in full swing, the silent primary comes as no surprise to market participants.

Primary activity has been mostly wrapped for nearly two weeks, and no new deals are expected to come to market during the shortened week ahead of the market’s closure for Christmas.

“It’s pretty quiet around here,” a market source said.

High-grade bank and financial paper was mostly flat in secondary trading on Tuesday.

Citigroup Inc.’s paper traded unchanged to about 1 basis point softer.

Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2025 were unchanged on the day.

Bank of America Corp.’s 3.875% senior notes due 2025 headed out flat.

JPMorgan Chase & Co.’s 4.25% subordinated notes due 2027 were stable.

The Markit CDX North American Investment Grade 25 index firmed 2 bps to close at a spread of 93 bps.

Citi mostly flat

Citigroup’s 4.45% subordinated notes due 2027 eased about 1 bp to 231 bps bid, according to a market source.

Citigroup sold $1.5 billion of the notes (Baa3/BBB+/A-) in an Oct. 23 reopening at 233 bps over Treasuries. The $2 billion tranche originally priced on Sept. 23 at a spread of 235 bps over Treasuries.

The financial services company is based in New York.

JPMorgan steady

JPMorgan Chase’s 4.25% subordinated bonds due 2027 were flat at 205 bps bid on Tuesday, a market source said.

JPMorgan Chase sold $2 billion of the bonds (Baa1/A-/A) on Sept. 23 at a spread of Treasuries plus 215 bps.

The financial services company is based in New York City.

Goldman unchanged

Goldman’s 4.25% subordinated notes due 2025 were unchanged at 210 bps bid, according to a market source.

Goldman sold $2 billion of the notes (Baa2/BBB+/A-) on Oct. 16 at a spread of Treasuries plus 230 bps.

The financial services company is based in New York City.

Bank of America stable

Bank of America’s 3.875% senior notes due 2025 were flat over the session at 149 bps bid, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at 167 bps over Treasuries.

The financial services company is based in Charlotte, N.C.

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