SMBC, TD Bank, Exelon bring deals during solid session; bank, financial paper tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 8 – The investment-grade bond market’s momentum continued on Thursday, with Sumitomo Mitsui Banking Corp., Kommunalbanken AS, Toronto-Dominion Bank, Exelon Generation Co. LLC and Nederlandse Waterschapsbank NV pricing new deals during another strong session.

Sumitomo Mitsui Banking priced $2.25 billion of notes, while Nederlandse Waterschapsbank priced $1.5 billion of notes due 2018.

Toronto-Dominion Bank came to market with a $1.1 billion offering of two-year floaters.

The session also saw Kommunalbanken sell $1 billion of five-year notes and Exelon Generation price an upsized $750 million of notes due 2020.

Fannie Mae was also in Thursday’s market, pricing $3 billion of Benchmark Notes due Jan. 21, 2020.

Following a slower start to the week, the high-grade primary has since roared to life, hosting more than $38 billion of new issuance.

Investment-grade credit spreads and bank and financial paper improved over the session, market sources said.

The Markit CDX North American Investment Grade series 23 index firmed 2 basis points to a spread of 68 bps on Thursday.

Citigroup Inc.’s 3.75% notes due 2024 tightened nearly 10 bps in secondary trading, while Bank of America Corp.’s 4% notes due 2024 firmed 3 bps.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded more than 5 bps better.

And JPMorgan Chase & Co.’s 3.625% senior notes due 2024 firmed 5 bps in the secondary market.

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