NWB Bank prices add-on amid weaker tone; Citigroup, Goldman unchanged; eBay stable

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 9 – The investment-grade bond market was quiet on Tuesday, with a single deal from Nederlandse Waterschapsbank NV pricing during the session.

The Netherlands-based financial services company sold a $500 million add-on to its existing 0.5% notes due March 4, 2016 amid a weaker tone to the market that kept most issuers on the sidelines.

In total, $3.75 billion of new issuance has priced this week, a sharp decline from last week’s frenzied $49 billion of supply.

Sources had expected around $15 billion of new issuance to price this week as the market begins to wind down for the year.

Investment-grade credit spreads continued to leak wider over the day after easing 2 basis points in the previous session, sources said.

The Markit CDX North American Investment Grade series 23 index was unchanged to moderately weaker at a spread of 65 bps.

Bank and financial paper traded mostly unchanged in the secondary market, a source said.

Citigroup Inc.’s 3.75% notes due 2024 were flat after the paper firmed 3 bps in the previous session.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded unchanged on the day after easing 1 bp on Monday, a market source said.

eBay Inc.’s 3.45% senior notes due 2024 headed out flat, though the bonds have widened nearly 50 bps since July, according to a market source.

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