ABN Amro, RBC bring deals to primary; Wells Fargo stable; Barclays, Verizon ease

By Aleesia Forni and Cristal Cody

Virginia Beach, July 21 – Financial names dominated action in the investment-grade market on Tuesday, with ABN Amro Bank NV and Royal Bank of Canada entering the primary amid broader market weakness during the session.

Despite the tone, ABN Amro was able to price its new $1.5 billion offering around 20 basis points tighter than initial price talk.

Royal Bank of Canada sold a new floating-rate covered bond in line with price thoughts, skipping the guidance stage to go straight to launching the $500 million deal.

The deal’s order book reached $700 million.

Caisse d'Amortissement de la Dette Sociale also priced a $3 billion offering on Tuesday, though details of the sale were unavailable at press time.

In total, the primary has hosted around $19.5 billion of new issuance, with more than half of that total coming from UnitedHealth Group Inc.’s $10.5 billion acquisition financing deal.

In the secondary market, Wells Fargo & Co.’s 2.15% senior notes due 2020 were unchanged on the day.

Barclays plc’s 2.875% notes due 2020 traded 1 bp softer after tightening 7 bps in the previous session.

Verizon Communications Inc.’s 3.5% notes due 2024 headed out 4 bps weaker.

The Markit CDX North American Investment Grade index ended 1 bp wider at a spread of 67 bps.

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