Citigroup prices notes after strong earnings; Intel, Apple bonds tighten; calendar grows

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 19 – Citigroup Inc., Brambles USA Inc. and CubeSmart, LP offered new bond deals on Monday, as a weaker market backdrop and missed earnings took their toll on the asset class.

Morgan Stanley reported lower-than-expected third-quarter results due to global market volatility during the trading day, capping off what has been a disappointing earnings season for banks.

Citigroup, one of the few names to have reported positive earnings last week, entered the primary with a $3 billion offering of notes in two parts around 12 basis points inside initial price thoughts.

Brambles USA, meantime, sold a $500 million 10-year issue in its first entrance into the high-grade dollar market in more than five years, with the deal’s order book finishing at around four times oversubscribed.

And the forward calendar saw KfW and Bank Nederlandse Gemeenten NV added to the pipeline during the session, both announcing talk for deals expected to price on Tuesday.

Investment-grade bonds were mixed in secondary trading over the session.

Citigroup’s existing paper was mostly unchanged.

Bank of America Corp.’s 3.875% senior notes due 2025 traded 4 bps weaker.

Intel Corp.’s senior notes (A1/A+/A+) tightened 2 bps to 3 bps in the secondary market.

Apple Inc.’s bonds (Aa1/AA+/) headed out 2 bps to 3 bps better.

The Markit CDX North American Investment Grade 25 index firmed 1 bp on Monday to close at a spread of 80 bps.

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