CIBC, SunTrust Banks, Goldman tap primary market; heavier supply forecast; CPPIB tightens

By Cristal Cody

Tupelo, Miss., Jan. 26 – Three issuers tapped the investment-grade primary market on Friday, bringing the week’s corporate deal total to more than $10 billion.

Canadian Imperial Bank of Commerce sold $1.35 billion of senior notes in two tranches during the session.

SunTrust Banks, Inc. priced two tranches of senior notes in a $1.25 billion deal.

Also, Goldman Sachs Group Inc. brought a $125 million add-on to its $2.5 billion of five-year floating-rate notes that originally priced on Jan. 18.

Supply thinned during the week and some market sources are predicting bouts of anemic issuance over the year from a variety of headwinds including the lower corporate tax rate.

Deal action, though, is expected to pick up in the week ahead. About $20 billion of volume is expected with corporate supply anticipated to increase as companies exit blackout earnings periods, according to market sources.

In other investment-grade market activity, secondary trading has been strong over the week, and spreads remained mostly modestly firm on Friday, sources said.

Capital One Financial Corp.’s $3 billion of senior notes (Baa1/BBB/A-) priced on Thursday were mixed in the secondary market.

CPPIB Capital Inc.’s $2 billion of 2.375% notes due Jan. 30, 2021 sold on Tuesday traded about 1.5 basis points better.

© 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.