Morning Commentary: World Bank to price benchmark dollar notes; corporates quiet

By Cristal Cody

Tupelo, Miss., July 18 – The International Bank for Reconstruction and Development, or World Bank, is on deck Wednesday with its first benchmark-sized dollar-denominated offering of the year.

World Bank plans to price dollar-denominated global notes due July 23, 2021 (Aaa/AAA/AAA) that were initially talked to price with a spread in the mid-swaps minus 3 basis points area., according to a market source.

BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities and Morgan Stanley are the bookrunners.

Corporate issuers were quiet at the start of the session with no reported deals being marketed following more than $19 billion of new paper from bank and financial companies in the first two sessions of the week.

Mitsubishi UFJ Financial Group, Inc. tapped the primary market on Tuesday, while JPMorgan Chase & Co., Wells Fargo Bank NA, Citigroup Inc., Citibank, NA and Banque Federative du Credit Mutuel priced notes on Monday.

Morgan Stanley released its second-quarter earnings before the market opened on Wednesday.

Syndicate sources expect about $25 billion of high-grade deal volume over the week.

Elsewhere, the secondary market was active on Tuesday with $18.29 billion of investment-grade bonds traded, up from $16.36 billion of trading volume on Monday, according to Trace.

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