BofA prices after delay, downgrade; ECB disappoints markets; Dollar General, Pfizer firm

By Aleesia Forni

New York, Dec. 3 – Bank of America NA priced its previously delayed bank note offering on Thursday during a tumultuous day for global markets.

The session saw the European Central Bank ramp up efforts to boost Europe’s sluggish economy, though the stimulus failed to meet the market’s expectations, sending the euro surging and stocks and bonds tumbling.

Despite the volatile backdrop, Analog Devices, Inc., Royal Bank of Canada and BAE Systems Holdings Inc. were all able to price new deals at the tightest side of guidance levels.

The activity pushes the week’s new issuance level to more than $31 billion, blowing away earlier supply predictions of around $20 billion.

Investment-grade bonds were mixed in secondary trading over the day, while credit spreads weakened.

Intel’s existing senior notes traded 2 basis points softer to 1 bp better on the long end.

Dollar General Corp.’s 4.15% senior notes due 2025 firmed 3 bps on Thursday after tightening 2 bps in Wednesday’s session.

Bank of America Corp.’s 3.875% senior notes due 2025 headed out about 3 bps wider.

Pfizer Inc.’s 3.4% senior notes due 2024 continued to trade better since the company's announcement in late November that it will acquire Dublin-based Allergan plc in a deal valued at $160 billion.

The Markit CDX North American Investment Grade 25 index eased 2 bps to end the day at a spread of 84 bps.

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