Fannie Mae to price Benchmark Notes; credit spreads widen; Goldman Sachs eases; Visa flat

By Cristal Cody

Tupelo, Miss., Feb. 2 – Primary action stayed quiet in the investment-grade corporate bond market on Tuesday as Treasuries rallied on volatility in equities and low crude oil prices.

Fannie Mae announced plans to price an offering of five-year Benchmark Notes.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Nomura Securities International, Inc. are the lead managers.

The deal is expected to close on Friday.

Fannie Mae will apply to list the securities on the EuroMTF market of the Luxembourg Stock Exchange.

Bonds were mixed in secondary trading and credit spreads widened during the session.

The Markit CDX North American Investment Grade index closed 4 basis points weaker at a spread of 108 bps.

Goldman Sachs Group Inc.’s 4.25% subordinated notes due 2025 traded 5 bps weaker at 240 bps bid on Tuesday, according to a market source.

Goldman sold $2 billion of the notes (Baa2/BBB+/A-) on Oct. 16 at a spread of Treasuries plus 230 bps.

Visa Inc.’s 3.15% notes due 2025 were unchanged in secondary trading at 105 bps bid, according to a market source.

Exxon Mobil Corp.’s 2.709% notes due 2025 eased 1 bp to 66 bps bid after the company reported a fourth-quarter earnings and revenue drop.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.