BNP sells perpetual notes; Svenska enters primary; Comcast, MUFG ease; Goldman Sachs firms

By Aleesia Forni and Cristal Cody

New York, March 23 – BNP Paribas and Svenska Handelsbanken AB sold bonds on Wednesday, two deals that are expected to be among the last to hit this week’s primary.

BNP sold its additional tier 1 perpetual notes at the tightest side of price thoughts.

Svenska Handelsbanken priced $1.75 billion of notes in fixed- and floating-rate pieces due 2021.

So far this week, around $12.35 billion of new issuance has entered the investment-grade market, and sources are predicting the remainder of the week to be mostly quiet ahead of the holiday weekend.

Meantime, S&P expects most higher-rated companies to “continue to have a favorable lending environment as investors pursue moderate yields while remaining more risk-averse” in the near term, analysts said in a report on Wednesday.

Analysts also noted that with plunging equities in China, tumbling commodity prices and higher volatility, risk aversion is on the rise.

Investment-grade bonds were mixed in secondary trading over the day and credit spreads leaked wider.

Comcast Corp.’s reopened 3.15% senior notes due 2026 traded 1 basis point softer on Wednesday.

Goldman Sachs Group Inc.’s 3.75% senior notes due 2026 firmed 2 bps.

Mitsubishi UFJ Financial Group, Inc.’s 3.85% senior notes due 2026 eased 4 bps.

Citigroup Inc.’s 2.7% senior notes due 2021 traded 5 bps better earlier in the session.

The Markit CDX North American Investment Grade index closed 1 bp softer at a spread of 81 bps.

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