Bank of America, Mitsubishi UFJ, Sweden sell notes; Kommunalbanken to price; spreads flat

By Cristal Cody

Tupelo, Miss., July 18 – Deal action stayed strong in the high-grade bond market on Tuesday, particularly in bank and financial issuance.

Bank of America Corp. tapped the primary market with a $7 billion four-tranche offering of notes following the release of the company’s second-quarter earnings.

Also on Tuesday, Mitsubishi UFJ Financial Group, Inc. priced a $4 billion three-part offering of senior notes.

The deals follow other issuance from JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. on Monday.

In other bank issuance on Tuesday, Toronto-Dominion Bank priced C$1.5 billion of medium-term fixed-to-floating rate non-viability contingent capital subordinated notes with a robust book size, a source said.

The session also saw a $2.75 billion offering of two-year bonds from the Kingdom of Sweden.

Looking ahead to Wednesday, Kommunalbanken AS (Aaa/AAA) is expected to offer a $300 million add-on to its floating-rate notes due Sept. 8, 2021 in a Rule 144A and Regulation S deal, according to a market source.

The notes were initially talked to price in the Libor plus 12 basis points area.

BMO Capital Markets Corp., Morgan Stanley & Co. LLC and Nomura are the lead managers.

The Markit CDX North American Investment Grade index closed the day mostly flat at a spread of 57 bps.

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