(Bloomberg) — Bank of America Corp., U.S. Bancorp and Citizens Financial Group Inc. are the latest to barrel into the US investment-grade debt market, selling nearly $10 billion of bonds Thursday.
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The trio of banks added to a roughly $50 billion stampede of debt issuance this week as regional firms join money-center banks in the race to tap the market after reporting earnings. With nearly two weeks left to go, this month is already the second-busiest January on record.
Bank of America tested investor appetite with $5 billion of senior unsecured fixed-to-floating rate notes that yield 133 basis points over comparable Treasuries after initial pricing discussions of around 155 basis points, according to a person familiar with the matter.
Details of the deals from Bank of America, U.S. Bancorp and Citizens are all according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.
Sources also said U.S. Bancorp and Citizens marketed deals Thursday. U.S. Bancorp offered $3.5 billion of debt in two parts. The longest portion, an 11-year note, yields 153 basis points over comparable Treasuries after being pitched to investors at a spread of around 180 basis points.
Citizens sold $1.25 billion of fixed-to-floating rate notes that yield 180 basis points over comparable Treasuries following initial pricing discussions around 210 basis points.
It’s been a busy week for Wall Street titans after JPMorgan Chase & Co., Wells Fargo & Co. and Morgan Stanley sold about $23 billion in new bonds on Tuesday. That was swiftly followed by PNC Financial Services Group Inc. with a $2.5 billion deal on Wednesday, making it the first domestic regional lender to tap the bond market this year.
Weekly issuance is just shy of $50 billion, blowing past forecasts of $35 billion. All told, blue-chip companies have brought 25 deals to market so far this week.
Following a positive earnings report earlier this week, Goldman Sachs Group Inc. is one bank not anticipated to sell new debt Thursday, according to Bloomberg’s Michael Gambale. Investors will be watching Citigroup Inc. and regional lender Truist Financial Corp., as they may issue debt after quarterly reports.
–With assistance from Michael Gambale.
(Updates with deal pricing details throughout, adds chart.)
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