U.S. Bancorp, U.S. Bank, Sydney Airport tap market; Morgan Stanley, Anheuser-Busch active

By Cristal Cody

Eureka Springs, Ark., April 21 – Banks and financials continued to dominate the high-grade primary market on Thursday for a second straight session.

U.S. Bancorp sold $1 billion of 10-year subordinated medium-term notes a day after the company reported that first quarter earnings slipped but revenue rose modestly.

Its U.S. Bank NA unit placed $1.5 billion of fixed-rate and floating-rate three-year notes in two tranches during the session.

Sydney Airport Finance Co. Pty Ltd. was in the primary market with a $900 million offering of 10-year notes.

Details emerged on a $3.5 billion four-tranche offering of notes from Goldman Sachs Group Inc.

Credit Agricole SA (London Branch) also brought a $1.4 billion two-part sale of notes.

In addition, Wells Fargo & Co. priced a $500 million reopening of its 3% 10-year senior notes.

Primary action is expected to be quiet on Friday.

“It’s been a light week, it will probably be quiet the rest of the week here,” a source said.

The Markit CDX North American Investment Grade index eased 1 basis point over the day to a spread of 74 bps.

In the secondary market, Morgan Stanley & Co. Inc.’s 3.875% notes due 2026 were among the day’s mostly heavily traded, a market source said. The notes were seen going out 2 bps softer.

Anheuser-Busch InBev Finance Inc.’s 3.65% senior notes due 2026 also were active and traded 1 bp better on the day.

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