Goldman, BNY Mellon Selling $6 Billion of Debt Post-Earnings

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(Bloomberg) -- Goldman Sachs Group Inc. and Bank of New York Mellon Corp. are selling a combined $6 billion of investment-grade bonds on Wednesday, joining...

-- Goldman Sachs Group Inc. and Bank of New York Mellon Corp. are selling a combined $6 billion of investment-grade bonds on Wednesday, joining other Wall Street stalwarts selling debt post-earnings even as borrowing costs rise.Goldman is selling $4 billion of fixed-to-floating rate notes in two parts while BNY Mellon is selling $2 billion with a similar structure and durations, according to people with knowledge of the matter.

The longest tranche on the bank’s latest bond sale is an 11-year security that will yield 1.58 percentage point above Treasuries, following initial discussions of 1.80 to 1.85 percentage point, said a person familiar, asking not to be identified discussing a private transaction.Big banks, which were expected to stay on the sidelines as they’re well-funded for the short term and borrowing costs are high, are flooding the market with new deals. JPMorgan Chase & Co. and Wells Fargo & Co.

Smalley expects to see between $15 billion and $22 billion in new deals from the big banks post-earnings, he said via email. Meanwhile, JPMorgan financial sector analyst Kabir Caprihan is projecting between $16 billion and $20 billion from the big banks after earnings, according to a Monday note.

 

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