Nine deals in investment grade as bankers turn bullish

[NEW YORK] Nine issuers announced investment-grade bond deals on Monday morning, following up the supply momentum that saw more than US$48 billion price in the primary market last week.

Utilities and Yankee banks were among the credits shrugging off weakness in equities and wider CDS indices to come to market with new deals and start the week off with a bang.

Toronto-Dominion Bank announced a five-year covered bond, while Danske Bank and Abbey National Treasury Services announced five and three-year senior bonds, respectively.

Bank of America announced a perpetual non-call 10 issuance of preferred stock, targeting institutional investors with US$1000 denominations.

"Banks always need the funding, but the first two weeks of February the window wasn't really open," one syndicate banker told IFR. "Now that the market's coming back, it feels like a pile-in." Away from the banking sector, utilities Idaho Power, Brooklyn Union Gas and Eversource Energy announced senior bonds with maturities between five and 30 years.

Perrigo Finance, the finance subsidiary of healthcare firm Perrigo Company, also announced a two-part five and 10-year senior bond.

Hyundai Capital Services announced a five-year senior green bond during Asian trading hours, setting final guidance at 150bp over Treasuries before US markets opened.

"With ultra-low foreign interest rates, the US investment-grade market is the only game in town," one bank analyst wrote on Monday.

IFR