High-grade primary market quiet; Bank Nederlandse in deal pipeline; Citigroup, Walgreens flat

By Cristal Cody

Tupelo, Miss., July 5 – High-grade issuers stayed to the sidelines on Wednesday following the Independence Day holiday, but the deal pipeline is building, according to market sources.

Bank Nederlandse Gemeenten NV is marketing a Rule 144A and Regulation S three-year floating-rate note deal that is expected to price on Thursday.

New bank and financial paper is expected to price later in the month after banks including Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley report second quarter earnings, according to a market source.

In the secondary market, Citigroup, Inc.’s 4.75% subordinated notes due May 18, 2046 reopened earlier in the year were unchanged.

Walgreens Boots Alliance Inc.’s 3.45% notes due June 1, 2026 softened about 1 basis point on Wednesday. The notes are trading about 4 bps to 5 bps better since Walgreens announced in the previous week plans to purchase more than 2,100 Rite Aid Corp. stores instead of the entire company.

The three-month Libor yield closed at a new high since 2009 at 1.303%, a market source said.

The Markit CDX North American Investment Grade index softened about 1 bp to end at a spread of 61 bps.

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