Fannie Mae offers notes; credit spreads widen; Goldman eases; Visa, Exxon Mobil mostly flat

By Cristal Cody

Tupelo, Miss., Feb. 2 – Primary action stayed quiet in the investment-grade corporate bond market on Tuesday as Treasuries rallied on volatility in equities and low crude oil prices.

Fannie Mae announced plans to price an offering of five-year Benchmark Notes.

Bonds were mixed in secondary trading and credit spreads widened during the session.

The Markit CDX North American Investment Grade index closed 4 basis points weaker at a spread of 108 bps.

Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2025 widened 5 bps.

Visa Inc.’s senior notes (A1/A+) traded flat to about 1 bp softer.

Exxon Mobil Corp.’s bonds were flat to 1 bp weaker after the company reported a fourth-quarter earnings and revenue drop.

Fannie plans five-year notes

Fannie Mae announced on Tuesday that it plans to price an offering of Benchmark Notes due Feb. 26, 2021.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Nomura Securities International, Inc. are the lead managers.

The deal is expected to close on Friday.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

The mortgage credit provider is based in Washington, D.C.

Goldman eases

Goldman’s 4.25% subordinated notes due 2025 traded 5 bps weaker at 240 bps bid on Tuesday, 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.

Visa 3.15% notes unchanged

Visa’s 3.15% notes due 2025 were unchanged in secondary trading at 105 bps bid, according to a market source.

The company sold $4 billion of the notes on Dec. 9 at Treasuries plus 97 bps.

The retail electronic payments network operator is based in San Francisco.

Exxon Mobil mostly flat

Exxon Mobil’s 2.709% notes due 2025 eased 1 bp to 66 bps bid, a source said.

Exxon Mobil sold $1.75 billion of the notes (Aaa/AAA/) on March 3, 2015 at Treasuries plus 58 bps.

The oil and gas company is based in Irving, Texas.

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