Fifth Third Bancorp, Reliance Standard price; Zions eyes primary; supply thin week to date

By Cristal Cody

Tupelo, Miss., Oct. 23 – Investment-grade bond supply on Wednesday included two corporate deals.

Fifth Third Bancorp priced a $750 million registered offering of long five-year senior notes 15 basis points tighter than initial talk.

Reliance Standard Life Global Funding II sold an upsized $400 million of five-year funding agreement-backed notes, also 15 bps better than initial guidance.

In other action on Wednesday, Zions Bancorporation NA (Baa1/BBB+/BBB) held fixed income investor calls for a subordinated note offering expected to soon follow, according to market sources.

High-grade deal volume has thinned with just over $4 billion of corporate bonds priced week to date. About $15 billion to $20 billion of supply was anticipated by syndicate sources for the week.

Market participants report focus has turned toward weak company earnings releases and a possible rate cut at the Federal Reserve’s upcoming Oct. 29-30 monetary policy meeting.

In other activity, the Federal Home Loan Bank System announced early Wednesday that it will not issue or reopen a Global Note on its Oct. 23 funding calendar date. The next Global Note opportunity will be on Nov. 6.

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