UnitedHealth sells notes; MetLife trades flat to tighter; JPMorgan, Citigroup notes firm

By Cristal Cody

Eureka Springs, Ark., Dec. 15 – Investment-grade bond issuance slowed on Thursday with one new offering priced during the session and little deal volume expected over the rest of the month, according to market sources.

UnitedHealth Group Inc. priced $1.5 billion of notes in two parts during the session.

The company’s 10- and 30-year notes were seen trading flat to 1 basis point tighter on the bid side in the secondary market.

Also in the secondary market, MetLife Global Funding I’s $2 billion of notes (Aa3/AA-) that priced in three tranches on Monday traded flat to about 3 bps better on the bid side.

Earlier, bank and financial paper was seen trading about 1 bp to 2 bps tighter in the secondary market.

JPMorgan Chase & Co.’s 2.972% notes due Jan. 15, 2023 improved about 2 bps but were weaker than where the notes priced at the start of the month.

Citigroup, Inc.’s 2.9% notes due Dec. 7, 2021 that priced on Dec. 1 firmed about 2 bps to trade about 1 bp better than issuance.

The Markit CDX North American Investment Grade index was mostly unchanged at a spread of 69 bps.

UnitedHealth Group priced $1.5 billion of fixed-rate notes (A3/A+/A-) in two tranches on Thursday on the tight side of guidance, according to a market source.

The company sold $750 million of 3.45% 10-year notes with a spread of 85 bps over Treasuries.

UnitedHealth placed $750 million of 4.2% 30-year notes at a Treasuries plus 105 bps spread.

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