Credit Suisse, National Rural issue bonds; JPMorgan, Bank of America flat; Citigroup eases

By Aleesia Forni and Cristal Cody

New York, April 13 – The pace of the high-grade primary market continued to be subdued on Wednesday.

The session hosted new deals from Credit Suisse Group Funding (Guernsey) Ltd. and National Rural Utilities Cooperative Finance Corp.

Credit Suisse issued $4.5 billion of bonds in three tranches around 10 basis points inside initial price thoughts.

And the session also saw National Rural offer a $350 million 30-year fixed-to-floating-rate issue of subordinated notes.

JPMorgan Chase & Co.’s 3.3% senior notes due 2026 were unchanged on the day after the company reported first-quarter income and revenue down slightly from the same period a year ago. JPMorgan said it earned $5.52 billion, or $1.35 per share, on revenue of $24.08 billion in the first quarter, down slightly from $5.91 billion, or $1.45 per share, on $24.82 billion a year ago.

Bank of America Corp. is set to announce first-quarter earnings before the market opens on Thursday, and Citigroup Inc. reports first-quarter earnings before the opening bell on Friday.

Bank of America’s 4.45% medium-term subordinated notes due 2026 headed out flat.

Citigroup’s 4.6% subordinated notes due 2026 softened 6 bps over the day.

Goldman Sachs Group Inc.’s 3.75% senior notes due 2026 were stable in the secondary market.

Morgan Stanley’s 3.875% senior notes due 2026 improved 1 bp from Tuesday’s levels.

The Markit CDX North American Investment Grade index opened the day 2 bps better but gave back some gains to close at a spread of 79 bps.

Credit Suisse prices tight

Credit Suisse Group Funding (Guernsey) priced $4.5 billion of senior notes (Baa3/BBB+/A) in tranches due 2021 and 2026 on Wednesday, according to a market source.

The notes are guaranteed by Credit Suisse Group AG.

The sale included a $1.5 billion tranche of 3.45% five-year notes priced at 99.996 to yield 3.451%, or Treasuries plus 225 bps.

Pricing was on top of guidance, which firmed from initial talk set in the Treasuries plus 235 bps area.

A $1 billion floating-rate five-year tranche sold at par to yield Libor plus 229 bps.

Guidance was at the fixed-rate tranche’s Libor equivalent.

A $2 billion tranche of 4.55% 10-year notes priced at 99.976 to yield 4.553%, or Treasuries plus 280 bps.

The notes sold on top of guidance. Initial talk was set in the area of 290 bps over Treasuries.

Proceeds from the offering will be used for general corporate purposes.

Credit Suisse Securities (USA) LLC was the bookrunner.

The financial services company is based in Zurich.

National Rural deal

National Rural Utilities priced $350 million of fixed-to-floating-rate subordinated deferrable interest notes due April 20, 2046 at par on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes (A3/BBB+/BBB+) will have a 5.25% fixed rate until April 20, 2026 and then will bear interest at a rate equal to Libor plus 363 bps thereafter.

Talk was in the 5.25% to 5.375% range.

J.P. Morgan Securities LLC and RBC Capital Markets LLC are the bookrunners.

Proceeds will be used for general corporate purposes, including the repayment of short-term debt, primarily commercial paper.

The market lender for electric cooperatives is based in Herndon, Va.

JPMorgan unchanged

JPMorgan’s 3.3% notes due 2026 headed out flat at 150 bps bid, according to a market source.

JPMorgan sold $2.5 billion of the notes (A3/A-) on March 18 at a spread of 145 bps plus Treasuries.

The financial services company is based in New York City.

Bank of America stable

Bank of America’s 4.45% subordinated notes due 2026 were unchanged on Wednesday at 242 bps bid, a market source said.

Bank of America sold $2 billion of the notes on Feb. 29 at a spread of 270 bps over Treasuries.

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

Citigroup eases

Citigroup's 4.6% subordinated notes due 2026 traded 6 bps weaker on Wednesday at 261 bps bid, a market source said.

Citigroup sold $1.5 billion of the notes (Baa3/BBB/A-) on March 1 at a spread of Treasuries plus 280 bps.

The banking and financial services company is based in New York.

Goldman steady

Goldman Sachs’ 3.75% notes due 2026 headed out flat on the day at 177 bps bid, a market source said.

Goldman Sachs sold $1.75 billion of the notes (A3/BBB+/A) on Feb. 22 at 203 bps over Treasuries.

The financial services company is based in New York City.

Morgan Stanley firms

Morgan Stanley’s 3.875% notes due 2026 traded 1 bp tighter on Wednesday at 170 bps bid, a market source said.

Morgan Stanley sold $3 billion of the notes (A3/BBB+/A) on Jan. 22 at a spread of 185 bps over Treasuries.

The financial services company is based in New York City.

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