European Investment Bank prices; high-grade supply thin; credit spreads widen

By Cristal Cody

Tupelo, Miss., Feb. 27 – The European Investment Bank priced $1 billion of four-year floating-rate notes in the investment-grade primary market on Thursday as the sole reported issuer.

Supply has been thin week to date with just one reported corporate issuer and two sovereign, supranational and agency deals so far.

Fulton Financial Corp. sold $375 million sale of fixed-to-floating rate subordinated notes in two tranches on Tuesday.

CPPIB Capital Inc. priced $1 billion of five-year notes in SSA issuance on Wednesday.

Meanwhile, First Citizens BancShares, Inc. started marketing $300 million of registered fixed-to-floating-rate subordinated notes due 2030 on Wednesday.

About $25 billion to $30 billion of investment-grade deal volume was expected this week but issuers have pulled back as the number of coronavirus infections grows globally, sparking fears of a pandemic and limited supply chains.

High-grade credit spreads have moved out about 18 basis points since the start of the week.

The Markit CDX North American Investment Grade 33 index widened almost 7 bps on Thursday to end the day at a spread of 64.48 bps.

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