Deutsche Bank sells tier 2 notes; Bank of America, Goldman tighten; energy bonds improve

By Aleesia Forni and Cristal Cody

Virginia Beach, March 27 – Deutsche Bank AG sold Friday’s lone new issue, pricing a $1.5 billion offering of subordinated tier 2 notes.

Despite weaker-than-expected U.S. economic data and ongoing market fatigue, the investment-grade market’s total supply reached $28 billion this week, bringing March’s total new issuance to more than $161 billion.

Meanwhile, Lipper reported inflows of $1.21 billion into corporate high-grade bond funds for the week ended March 25.

The total was down from last week’s inflows of $1.732 million, bringing the year-to-date total inflows to $24.635 billion.

Investment-grade bonds were mostly better on the day, while credit spreads headed out unchanged to modestly softer, sources said.

Bank of America Corp.’s 4% notes due 2025 were quoted 8 basis points better in afternoon trading.

Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 tightened 7 bps.

JPMorgan Chase & Co.’s 3.125% notes due 2025 firmed 4 bps.

Exxon Mobil Corp.’s senior notes (Aaa/AAA/) brought earlier in the month traded flat to 2 bps tighter.

Southwestern Energy Co.’s 4.95% senior notes due 2025 firmed 2 bps.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

U.S. and European investment-grade spreads have widened in March, Barclays Bank plc analysts said in a note on Friday, with European spreads wider by 13 bps and U.S. spreads wider by 7 bps.

© 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.