Citi, JPMorgan, ICBC, New York Life tap primary; Canadian pipeline thin; CDX eases; bonds flat

By Cristal Cody

Eureka Springs, Ark., Oct. 17 – High-grade issuers brought more than $6 billion of bonds on Monday, including deals as expected in the bank and financial sector.

Citigroup, Inc. priced $3 billion of 10-year notes.

JPMorgan Chase & Co. raised $2 billion in an offering of seven-year floating-rate notes.

Industrial and Commercial Bank of China Ltd., New York Branch brought $1 billion of five-year senior notes to market on Monday.

Also, New York Life Global Funding priced $750 million of three-year notes in fixed- and floating-rate tranches.

About $25 billion of high-grade supply is expected for the week, according to market sources.

Canadian primary activity is expected to stay thin over the next few sessions, with one small deal expected, a syndicate source said.

“The pipeline is looking pretty empty,” the source said. “Financials here don’t need any money. BMO just did a seven-year covered bond in Europe that was a really attractive deal, so if anybody needed money in the banks, they would have followed that. The market’s open in Canada, we just don’t have any issuers looking right now to take advantage of the good pricing and good demand.”

The Markit CDX North American Investment Grade index ended about 1 basis point softer at a spread of 76 bps.

CSX Corp.’s notes (Baa1/BBB+/) priced on Thursday were flat in earlier secondary trading.

Deutsche Bank AG’s 4.25% notes due 2021 were unchanged from Friday.

Citigroup sells $3 billion

Citigroup priced $3 billion of 3.2% 10-year notes at a spread of Treasuries plus 145 bps on Monday, according to a market source.

The notes (Baa1/BBB+/A) priced in line with talk.

Citigroup Global Markets Inc. was the bookrunner.

Citigroup is a financial services company based in New York.

JPMorgan raises $2 billion

JPMorgan priced $2 billion of seven-year floating-rate notes at Libor plus 123 bps on Monday, according to a market source.

The notes priced on the tight side of guidance.

The issue is non-callable for six years.

J.P. Morgan Securities LLC was the bookrunner.

The financial services company is based in New York.

ICBC prices $1 billion

Industrial and Commercial Bank of China priced $1 billion of 2.452% five-year senior notes with a spread of 120 bps over Treasuries on Monday, a market source said.

The notes priced in line with guidance.

A planned 10-year tranche was dropped.

BofA Merrill Lynch, BNP Paribas Securities Corp., Citigroup and Wells Fargo Securities LLC were the lead managers.

The issuer is the New York-based representative office of the Chinese bank.

New York Life sells notes

New York Life Global Funding priced $750 million of three-year notes in two parts on Monday, according to a market source.

The company sold $250 million of three-year floating-rate notes at Libor plus 39 bps.

New York Life priced $500 million of 1.5% three-year notes at a spread of Treasuries plus 53 bps.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. were the bookrunners.

New York Life Global is a unit of New York-based mutual insurance company New York Life Insurance Co.

CSX steady

CSX’s 2.6% notes due 2026 priced on Thursday were unchanged early Monday at 88 bps offered, a market source said.

The company sold $700 million of the notes at a spread of Treasuries plus 90 bps.

The transportation company is based in Jacksonville, Fla.

Deutsche Bank stable

Deutsche Bank’s 4.25% notes due 2021 traded unchanged from Friday at 272 bps offered, a market source said.

The bank priced a $1.5 billion add-on to the notes on Oct. 11 at a spread of Treasuries plus 290 bps. The notes were originally sold in a $3 billion tranche on Oct. 7 at a spread of Treasuries plus 300 bps.

Deutsche Bank is a banking and financial services company based in Frankfurt.

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