uploads///Total IG Bond Issuance in WE Apr

Which Companies Issued the Most High-Grade Bonds Last Week?

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Apr. 27 2016, Updated 9:07 a.m. ET

Deals overview

US financials dominated the primary market for high-grade bonds in the week ended April 22, 2016, making up 74.0%, or $13.1 billion, of all issues. Yankee bond issuers made up 17.2% of total issuance, and US corporate issuers made up 8.8% of total issuance.

The week ended April 22 brought the year-to-date issuance of high-grade corporate bonds to $578.2 billion.

Issuances by high-grade corporates form part of mutual funds and ETFs such as the Strategic Advisers Core Income Fund (FPCIX) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).

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Details of Goldman Sachs’s issue

Goldman Sachs (GS) issued A3/BBB+ rated high-grade bonds worth $3.5 billion via four parts on April 20, 2016:

  • $500 million in three-year FRNs (floating-rate notes) issued at a three-month LIBOR (Intercontinental Exchange London Interbank Offered Rate) +104 basis points
  • $500 million in 2.0% three-year notes issued at a spread of 113 bps (basis points) over similar-maturity Treasuries
  • $1.0 billion in five-year FRNs issued at a three-month LIBOR +136 basis points
  • $1.5 billion in 2.6% five-year bonds issued at a spread of 133 bps over similar-maturity Treasuries

Details of Morgan Stanley’s issue

Morgan Stanley (MS) issued A3/BBB+ rated high-grade bonds worth $3.5 billion via two parts on April 18, 2016:

  • $1.0 billion in five-year FRNs issued at a three-month LIBOR +140 basis points
  • $2.5 billion in 2.5% five-year bonds issued at a spread of 135 bps over similar-maturity Treasuries
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Details of Mitsubishi UFJ Financial Group’s issue

Mitsubishi UFJ Financial Group (MTU) re-opened A1/A rated high-grade bonds worth $2.0 billion which were issued on February 23 and reopened on April 19, 2016, via three parts:

  • $500 million in five-year on-tap FRNs issued at a three-month LIBOR +129 basis points
  • $1.0 billion in 3.0% five-year on-tap notes issued at a spread of 125 bps over similar-maturity Treasuries
  • $500 million in 3.9% ten-year on-tap notes issued at a spread of 155 bps over similar-maturity Treasuries

Details of US Bancorp’s issue

US Bancorp (USB) issued high-grade bonds worth $1.0 billion on April 21, 2016. The single-tranche A1/A-rated ten-year subordinated issue was raised at a coupon of 3.1%. The high-grade bonds were issued at a spread of 123 bps over similar-maturity Treasuries.

In the next article, we’ll look at investment-grade bond fund flows.

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