KfW, Dexia, Anheuser-Busch InBev price; spreads widen on oil decline; Barclays softens

By Aleesia Forni

New York, Jan. 20 – KfW, Dexia Credit Local and Anheuser-Busch InBev Finance Inc. sold bonds on Wednesday, while high-grade credit spreads were wider as stocks plunged and oil prices fell below $27 per barrel for the first time since 2003.

The Markit CDX North American Investment Grade 25 index was 1 basis point wider on the day at a spread of 111 bps.

Following the continued tumble in oil prices, bonds from Shell International Finance BV were trading wider late Wednesday.

The company’s 4.3% bonds due 2019 and 2.125% bonds due 2020 were each 4 bps softer, respectively.

Meanwhile, Barclays plc’s 5.25% bonds due 2045 were 4 bps wider following news of a round of job cuts at the investment bank in New York, London and across Asia.

And HSBC Holdings plc’s 4.25% subordinated notes due 2025 eased 2 bps, while bank and financial paper was around 2 bps to 3 bps wider on the day overall.

Back in the primary market, KfW doubled the size of its floaters to $2 billion from initial size thoughts of $1 billion. The notes mature Dec. 29, 2017 and priced at par to yield Libor plus 16 bps.

Dexia sold its $1.75 billion of three-year notes at mid-swaps plus 83 bps, inside price guidance of mid-swaps plus 84 bps area.

Anheuser-Busch InBev Finance sold $1.47 billion of 4.915% 30-year senior notes at par.

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