Financials dominate primary as SMBC, ANZ price; Honda Finance, GM Financial mostly better

By Cristal Cody and Aleesia Forni

Virginia Beach, July 8 – Financial issuers dominated the investment-grade primary market again on Tuesday.

The session saw new deals price from ANZ Banking Group Ltd., Sumitomo Mitsui Banking Corp., American Honda Finance Corp. and Sweden's Kommuninvest i Sverige AB.

SMBC brought the largest deal of the day to market, pricing $3 billion of notes in four tranches.

A source noted that the deal’s orderbook was more than four times oversubscribed.

Meanwhile, American Honda Finance priced $1 billion of three-year notes in fixed- and floating-rate tranches.

Kommuninvest and ANZ both came to market with floating-rate note offerings due 2016.

New deals from Seven and Seven Ltd. and Bank Nederlandse Gemeenten NV were added to the forward calendar on Tuesday.

So far, the quieter primary market has seen $7.3 billion of high-grade paper price this week.

Sources are expecting the week to see around $15 billion of supply.

Investment-grade bonds headed out flat to slightly softer, market sources said.

The Markit CDX North American Investment Grade series 22 index eased 2 basis points to a spread of 58 bps.

American Honda Finance’s fixed- and floating-rate notes traded wrapped around issuance to 1 bp tighter, a trader said.

General Motors Financial Co., Inc.’s two tranches of senior notes (Ba2/BB-/BB+) priced on Monday were slightly better in secondary trading, according to a trader.

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