Citigroup prices $2.5 billion; Flagstar prints; light supply eyed for week ahead

By Cristal Cody

Tupelo, Miss., Oct. 23 – The high-grade primary market saw additional financial paper price on Friday.

Citigroup Inc. sold $2.5 billion of four-year fixed-to-floating-rate social housing bonds (A3/BBB+/A).

In addition, Flagstar Bancorp Inc. (Baa3/BBB/BBB) brought $150 million of 10-year fixed-to-floating-rate subordinated notes to the primary market.

Corporate issuers priced more than $16 billion of bonds over the week with demand remaining strong, outpacing the $15 billion of supply expected, sources said.

Citigroup’s deal joins other bank issuance this week and in the same session a week ago following the release of third quarter earnings reports.

On Oct. 16, Bank of America Corp. brought $8.5 billion of medium-term senior notes (A2/A-/A+) in five tranches, and Morgan Stanley (A2/BBB+/A) sold $1 billion of five-year global medium-term fixed-to-floating-rate senior notes.

Kicking off financial supply this week, Canadian Imperial Bank of Commerce sold $500 million of five-year green senior notes (A2/BBB+/AA-) on Monday.

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