20 Oct

Goldman Sachs issued $5 billion worth of high-grade bonds

WRITTEN BY Lynn Noah FEATURED IN Macroeconomic Analysis

Overview of deals

US financials were the biggest issuers of high-grade bonds in the week ended October 16, making up 43.7%, or $14.2 billion, of all issues. Yankee issuers were the second biggest issuers, making up 34.6% of all issues. Meanwhile, US corporates issued $3.6 billion worth of high-grade bonds and made up 10.9% of the total issuance.

Respectively, Emerging Markets (or EM) and Supranational, Agencies and Sovereigns (or SAS) issued $2.5 billion and $1.0 billion worth of high-grade bonds. They also made up 7.7% and 3.1%, respectively, of the total issuance last week.

Goldman Sachs issued $5 billion worth of high-grade bonds

Additional details

The week ending on October 16 brought the year-to-date issuance of high-grade corporate bonds to $1.28 trillion.

Issuances by high-grade corporates form part of the mutual funds like the T. Rowe Price New Income Fund (PRCIX) and the Strategic Advisers Core Income Fund (FPCIX).

Details of the issue

Goldman Sachs (GS) is a leading global investment banking, securities, and investment management firm that provides a wide range of financial services. It issued high-grade bonds worth $5.0 billion in four parts:

  • $500 million in five-year on-tap FRNs (floating-rate notes) rated A3/A- and issued at three-month LIBOR + 134 basis points
  • $750 million in 2.750% five-year on-tap notes rated A3/A- and issued at a spread of 132 basis points over similar-maturity Treasuries
  • $2.0 billion in 4.250% ten-year sub notes rated Baa2/BBB+ and issued at a spread of 230 basis points over similar-maturity Treasuries
  • $1.75 billion in 4.750% 30-year bonds rated A3/A- and issued at a spread of 192 basis points over similar-maturity Treasuries

Fidelity National Information Services’ issue

Fidelity National Information Services (FIS) provides banking software and tools, architectures, and information technology solutions to the financial industry. Fidelity issued Baa3/BBB rated high-grade bonds worth $4.5 billion in four parts:

  • $750 million in 2.850% three-year notes at a spread of 195 basis points over similar-maturity Treasuries
  • $1.75 billion in 3.625% five-year notes at a spread of 230 basis points over similar-maturity Treasuries
  • $500 million in 4.500% seven-year notes at a spread of 280 basis points over similar-maturity Treasuries
  • $1.5 billion in 5.000% ten-year notes at a spread of 300 basis points over similar-maturity Treasuries

Bank of America’s issue

Bank of America (BAC) issued Baa1/A- rated high-grade bonds worth $3.25 billion in two parts:

  • $2.25 billion in 2.625% five-year notes at a spread of 135 basis points over similar-maturity Treasuries
  • $1.0 billion in 3.875% ten-year on-tap notes at a spread of 167 basis points over similar-maturity Treasuries

BHP Billiton Finance (USA)’s issue

BHP Billiton Finance, a subsidiary of BHP Billiton Limited (BHP), issued A3/A- rated high-grade bonds worth $3.25 billion in two parts:

  • $1.0 billion in 6.250% 60 NC-5 notes at a spread of 498.3 basis points over similar-maturity Treasuries
  • $2.25 billion in 6.750% 60 NC-10 notes at a spread of 477.6 basis points over similar-maturity Treasuries

Mizuho Bank’s issue

Mizuho Bank Limited, a subsidiary of Mizuho Financial Group (MFG), issued A1/A rated high-grade bonds worth $2.0 billion in three parts:

  • $500 million in three-year FRNs at three-month LIBOR + 119 basis points
  • $500 million in 2.150% three-year notes at a spread of 125 basis points over similar-maturity Treasuries
  • $1.0 billion in 2.700% five-year notes at a spread of 135 basis points over similar-maturity Treasuries

Latest articles

Monster Beverage (MNST) stock was down 1.6% as of 2:47 PM EDT on March 20.

Earlier today, the second-largest US automaker by 2018 sales volume, Ford Motor Company (F), revealed its plan to invest $850 million in its Flat Rock assembly plant through 2023.

Mizuho downgraded Yum! Brands (YUM) from “neutral” to “underperform” while keeping its 12-month price unchanged at $84, which represents a fall of 15.4% from its March 19 closing price of $99.20.

20 Mar

Why Verizon Sought to Lead 5G Rollout

WRITTEN BY Rachel Gunter

According to Verizon, its mobile 5G plans will cost $10 more than its current 4G plans.

As of March 19, Dunkin’ Brands (DNKN) was trading at $71.55, which represents a rise of 3.9% since the announcement of its fourth-quarter earnings on February 7.

Suncor Energy's shareholder returns have grown consistently over the past few years. The company hasn't forgotten its commitment to growth.