Goldman Sachs caps $34 billion week; Ford Motor Credit tightens; Morgan Stanley mostly flat

By Aleesia Forni and Cristal Cody

Virginia Beach, Va., Oct. 16 – Goldman Sachs Group Inc. priced a $5 billion billion offering of new and reopened notes on Friday, capping off a stellar shortened week for investment-grade bonds.

More than $34 billion of new issuance entered the primary during the four sessions following the extended Columbus Day holiday weekend, with around $24 billion of that total coming from financial and banking names.

The figure also blew away earlier predictions of $20 billion of supply.

Goldman Sachs offered the four-part bond even though it announced lower than expected earnings on Thursday.

The deal amassed an order book that was more than three times oversubscribed, a market source said.

Investment-grade bonds were mixed in secondary trading on Friday.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 tightened over the session, going out about 9 bps better.

Morgan Stanley’s 4% senior notes due 2025 eased 1 bp but remain mostly unchanged in the secondary market.

Earlier in the day, Dollar General Corp.’s 4.15% senior notes due 2025 brought to market on Thursday traded 6 bps tighter.

The Markit CDX North American Investment Grade 25 index tightened 2 bps to close on Friday at a spread of 81 bps.

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