Primary quiet; heavy volume forecast; JPMorgan notes firm; Stifel tightens; Citigroup better

By Cristal Cody

Eureka Springs, Ark., July 15 – Investment-grade issuers stood back on Friday, while issuance is expected to jump in the week ahead as banks come out of earnings blackout.

About $30 billion to $40 billion of volume is forecast ahead of the Federal Reserve’s July 26-27 policy meeting, according to a market source.

New investment-grade bonds that priced over the week were mixed in secondary trading on Friday.

JPMorgan Chase & Co.’s 2.95% senior notes due 2026 continued to tighten over Friday’s session.

Stifel Financial Corp.’s 4.25% senior notes due 2024 headed out 10 basis points better than issuance on Friday.

Comcast Corp.’s notes were mixed, trading as much as 2 bps tighter to 1 bp softer on the long end, a source said.

Citigroup Inc.’s paper traded mostly flat to about 3 bps better on Friday after the company beat second-quarter earnings expectations of $1.10 a share.

Citi reported income of $4 billion, or $1.24 a share, for the quarter ended June 30, compared to $4.8 billion, or $1.51 a share, in the same period a year ago.

The Markit CDX North American Investment Grade index closed the day about 2 bps weaker at a spread of 72 bps.

JPMorgan firms

JPMorgan Chase’s 2.95% notes due 2026 traded late Friday afternoon at 142 bps bid, 139 bps offered, according to a market source.

The notes were quoted early in the day at 140 bps offered.

The company sold $3 billion of the notes (A3/A-A+) on Thursday at a spread of 145 bps over Treasuries.

The financial services company is based in New York City.

Stifel tightens

Stifel Financial’s 4.25% notes due 2024 tightened to 250 bps bid, 242 bps offered in secondary trading on Friday, a market source said.

The company priced a $200 million add-on to the notes (/BBB-/BBB-) on July 11 at a spread of 260 bps over Treasuries.

The company originally sold $300 million of the notes on July 15, 2014 at 180 bps over Treasuries.

Stifel is a St. Louis-based financial holding company for banking, securities and financial services businesses, including Stifel, Nicolaus & Co., Inc.

Citi improves

Citigroup’s 4.6% subordinated notes due 2026 firmed 2 bps to 226 bps bid on Friday, 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.

© 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.