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ING Group Issued the Most High-Grade Bonds Last Week

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Deals overview

US financials were the highest issuers of high-grade bonds in the week ended August 14, making up 37.7% of all issuance. Yankee bond issuers made a strong return to the market with issuance worth $9 billion, or 36.4% of total issuance. Meanwhile, US corporates accounted for 25.9% of all issuance. The week ended August 14 brought the year-to-date issuance of high-grade corporate bonds to $1.07 trillion.

Issuance by high-grade corporates are part of mutual funds like the Vanguard Total Bond Market Index Inv (VBMFX) and the PIMCO Total Return A (PTTAX).

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Details of ING Group’s issuance

ING Group (ING) issued bonds worth $2.5 billion—the largest issuance last week. The A1/A rated bonds were issued via the following four tranches:

  • $500 million in three-year FRNs (floating-rate notes) at three-month LIBOR + 78 basis points
  • $1.0 billion in three-year notes at a spread of 100 bps over similar-maturity Treasuries
  • $250 million in five-year FRNs at three-month LIBOR + 97 basis points
  • $750 million in five-year notes at a spread of 110 bps over similar-maturity Treasuries

Details of Lloyds Bank’s issuance

Lloyds Bank (LYG) issued A1/A rated high-grade bonds worth $2.0 billion in three parts:

  • $300 million three-year FRNs at three-month LIBOR + 78 basis points
  • $700 million in three-year notes at a spread of 100 bps over similar-maturity Treasuries
  • $1.0 billion in five-year notes at a spread of 110 bps over similar-maturity Treasuries
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Details of Barclays’s issuance

Barclays (BCS) issued high-grade bonds worth $1.5 billion last week. The single-tranche Baa3/BBB rated issuance was for 30 years. The bonds were issued at a spread of 235 bps over similar-maturity Treasuries.

Details of HSBC Holdings’s issuance

HSBC Holdings (HSBC) issued high-grade bonds worth $1.5 billion last week. The single-tranche A2/BBB+ rated issuance was for ten years. High-grade bonds were issued at a spread of 212 bps over similar-maturity Treasuries.

Details of Bank of New York Mellon’s issuance

Bank of New York Mellon (BK) issued A1/A+ rated high-grade bonds worth $1.4 billion in two parts:

  • $300 million in five-year FRNs at three-month LIBOR + 87 basis points
  • $1.1 billion in five-year notes at a spread of 100 bps over similar-maturity Treasuries
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