Morning Commentary: Bank of America, Bank of New York Mellon market new senior notes

By Cristal Cody

Tupelo, Miss., Oct. 17 – Additional bank supply is on tap in the high-grade primary market on Thursday.

Bank of America Corp. is offering two tranches of notes that include fixed-to-floating rate senior notes.

Bank of New York Mellon Corp. plans to price fixed-rate senior medium-term notes.

On Wednesday, Bank of Montreal priced a $500 million inaugural offering of three-year sustainability notes.

Also in the previous session, Citigroup Inc. tapped the sterling market with £650 million of seven-year registered senior notes.

Bank supply has been anticipated following the release of third-quarter earnings reports this week.

Bank of America released its third-quarter earnings report on Wednesday, while Citigroup posted its profit results on Tuesday.

On Thursday, Morgan Stanley released its profit report before the financial markets opened.

More than $4 billion of corporate bonds have priced so far this week. Another $3 billion of notes have priced in the sovereign, supranational and agency market week to date.

About $10 billion to $15 billion of issuance is expected by market sources for the Columbus Day holiday-shortened week.

In the investment-grade secondary market, corporate trading volume rose to $20.3 billion on Wednesday from $18.48 billion on Tuesday, according to Trace data.

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