Lloyds, Barclays, HSBC price during frenzied primary session; bank paper flat to softer

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 10 – The investment-grade bond market was flooded with new issues to open the week on Monday.

A group dominated by financial names brought $14 billion of paper to the primary during the session.

Lloyds Bank plc sold a $2 billion three-tranche offering of senior notes tighter than initial price thoughts.

A source noted strong demand for Barclays plc’s new $1.5 billion 30-year offering, which attracted an order book that was 2.8 times oversubscribed.

Also on Monday, HSBC Holdings plc sold $1.5 billion of subordinated notes at the tight end of guidance, while Duke Energy Progress Inc. priced an upsized $1.2 billion two-part new issue.

Simon Property Group LP, meantime, sold $1.1 billion of senior notes in five- and 10-year tranches.

American Water Capital Corp. and Paccar Financial Corp. each entered the primary market with two-part new issues.

In secondary trading, investment-grade bonds were mostly flat to modestly softer on the day, while market tone improved and credit spreads recovered some weakness, sources said.

Barclays’ existing 2.875% notes due 2020 were flat in the secondary market.

Goldman Sachs Group Inc.’s 3.5% notes due 2025 were unchanged over the session.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded 3 bps softer.

The Markit CDX North American Investment Grade index firmed 1 bp to a spread of 74 bps.

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