Bank of America brings day’s lone deal; bank, financial paper mostly unchanged

By Aleesia Forni and Cristal Cody

Virginia Beach, July 27 – Bank of America Corp. was the lone issuer to brave volatile market conditions on Monday following an overnight drop in Chinese stocks.

The financial services company sold a $2.5 billion issue of 10-year senior notes around 8 basis points tight of initial price thoughts.

The day’s sole deal garnered an order book that was around 1.8 times oversubscribed.

Players were gearing up for another $25 billion to $30 billion week for the primary market following back-to-back $45 billion-plus weeks of supply, though the total may ultimately miss that estimate due to the current market backdrop.

Investment-grade bank and financial paper was mostly unchanged on the day, while credit spreads widened.

The Markit CDX North American Investment Grade index ended 2 bps wider at a spread of 74 bps.

Bank of America’s existing 4% notes due 2025 were flat in secondary trading.

Citigroup Inc.’s 3.3% senior notes due 2025 headed out unchanged.

Barclays Bank plc’s 2.875% notes due 2020 were flat in the secondary market.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded about 1 bp wider.

Investment-grade bank and brokerage CDS prices were higher on Monday, according to a market source.

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