World Bank, Guardian Life price; Fannie Mae markets notes; bank, financial paper mixed

By Cristal Cody

Eureka Springs, Ark., Oct. 20 – High-grade primary market volume included two bond deals on Thursday with market sources expecting the week ahead to see heavy supply.

World Bank (International Bank for Reconstruction and Development) priced $4.25 billion of global benchmark bonds in two tranches.

“The 10-year benchmark bond marks our successful return to the long end of the curve, since our last one in over a year,” Arunma Oteh, vice president and treasurer at World Bank, said in a news release.

The bank sold $3 billion of three-year bonds and $1.25 billion of 10-year bonds.

The deal had a combined order book of more than $6 billion with more than 100 investors participating, Philip Brown, head of public sector capital markets at joint lead manager Citigroup Global Markets Inc., said in the release.

In other supply on Thursday, Guardian Life Global Funding sold $300 million of five-year notes.

Also, Fannie Mae announced plans to price an offering of three-year Benchmark Notes.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 74 basis points.

Bank and financial paper was mixed in secondary trading over the day, a source said.

Wells Fargo & Co.’s 3% senior notes due 2026 that priced on Wednesday traded about 10 bps better than issuance earlier.

Bank of America Corp.’s 3.248% senior notes due 2026 that priced on Tuesday traded flat to 1 bp tighter.

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