Morning Commentary: JPMorgan to tap market; financial issuers eyed; primary pace to increase

By Cristal Cody

Tupelo, Miss., July 16 – Bank and financial issuance is in the forefront this week in the high-grade bond market with JPMorgan Chase & Co. on deck early Monday.

JPMorgan Chase plans to price floating-rate and fixed-to-floating rate notes following the release of its second-quarter earnings on Friday.

Citigroup Inc. and Wells Fargo & Co. also released earnings results on Friday.

Bank of America Corp. reported its earnings on Monday. Goldman Sachs Group Inc. releases its profit results on Tuesday, while Morgan Stanley will post its quarterly earnings on Wednesday.

Market sources expect additional bank and financial issuance over the week.

About $25 billion of overall deal volume is forecast for the week, according to syndicate sources.

The week typically has posted $26 billion of average high-grade bond issuance from 2011 to 2017, according to a BofA Merrill Lynch note released on Monday.

Investment-grade issuers priced more than $10 billion of bonds in the previous week, while no supply came over the July 4 holiday week.

On Friday, the investment-grade secondary market ended with $12.39 billion of trading volume, Trace reported.

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