Bank of America sells $5 billion deal following earnings; Citigroup, JPMorgan issues firm

By Aleesia Forni and Cristal Cody

New York, April 14 – Bank of America Corp. entered the primary space on Thursday, pricing $5 billion of bonds on the heels of an earnings announcement that was only slightly better than expectations.

For the first quarter, the bank reported earnings of $0.21 per share, just above predictions of around $0.20 per share.

The bank cited a continued decline in trading revenue for its 18% slide in profits.

Following the announcement, the company issued the three-part deal in five- and 10-year maturities, all at the tightest side of price guidance.

And Micron Technology, Inc. sold an upsized $1.25 billion issue of secured notes at the tight end of talk.

Although the deal has investment-grade ratings and is coming with a covenant package that is basically investment grade-style, the bonds will be traded off the high-yield desk, a trader said.

Investment-grade corporate bonds traded mostly stronger over the session.

Bank of America’s existing 4.45% medium-term subordinated notes due 2026 firmed by 3 basis points.

Citigroup Inc.’s 4.6% subordinated notes due 2026 tightened 11 bps on the day ahead of the company’s first-quarter earnings report on Friday.

JPMorgan Chase & Co.’s 3.3% senior notes due 2026 came in 9 bps after the release of the company’s first-quarter earnings results on Wednesday.

Earlier on Thursday, Credit Suisse Group Funding (Guernsey) Ltd.’s new senior notes (Baa3/BBB+/A) traded about 3 bps to 5 bps tighter.

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