Citibank Taps Bond Market for First Bank-Level Deal Since 2019

The New York-based bank, the operating company of Citigroup Inc. which offers saving accounts, credit cards and mortgages, is looking to sell fixed- and floating-rate notes in as many as three parts, according to a person familiar with the matter. The longest portion, a five-year fixed-rate tranche, may yield 1.18 percentage points over Treasuries after earlier discussions for about 1.4 percentage points, said the person, who asked not to be identified as the details are private.

“As that Covid-era funding mix shifts back toward normal, driven by declining deposits on the back of monetary policy, we would expect incremental debt funding at the OpCo level,” he said. Citibank’s transaction follows others by Bank of America Corp., Morgan Stanley and Wells Fargo & Co., which sold bank-level bonds in recent months.

Citibank NA was last in the market in May 2019, according to data compiled by Bloomberg, when the company raised $3 billion. The new deal is part of a revival of corporate bond sales that saw multiple companies stand down during some trading sessions following the Federal Reserve’s hawkish pause on Wednesday. Citibank joins Canadian Imperial Bank of Commerce, Australia & New Zealand Banking Group Ltd., and Credit Agricole SA so far this week.--With assistance from Michael Gambale and Andrew Kostic.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street drifts as the pressure keeps mounting from the bond marketNEW YORK (AP) — A sluggish day for stocks kept September on track to be the worst month of the year for Wall Street. The S&P 500 managed a gain of 0.4%, coming off its worst week in six months.
Source: SooToday - 🏆 8. / 85 Read more »

Foreigners Set for Bigger Play in $1 Trillion India Bond MarketIndia’s $1 trillion government bond market has struggled for years to rise above the criticism of being insular.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Bond Market Is Starting to Believe ECB Higher-for-Longer Pledge(Bloomberg) -- The European Central Bank’s message that interest rates will stay higher for longer is finally sinking in with the bond market.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Turkey could bring forward some 2024 bond sales if market favourable: JPMorganMarket News
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Where investors should focus their attention in the bond marketWith the worry of a potential government shutdown — which Moody's cites as a hit to U.S. credit — and the Federal Reserve's 'higher for longer' interest rates gathering steam over markets, investors are unsure where to hold investments. BlackRock Head of iShares Investment Strategy Gargi Chaudhuri joins Yahoo Finance to explain the movements in the bond markets and what investors should pay attention to during the shaky state of the economy. Chaudhuri offers insights into how markets are reacting to interest rates based on where Treasury yield curves are now: 'The 5-year part of the curve is where investors should be allocating to.' For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Petrobras Taps Chinese Banks to Finance Deepwater Oil ExpansionPetrobras is recruiting Chinese banks to finance its deepwater oil expansion in a sign of growing ties between Brazil’s state-controlled oil company and the world’s second-biggest economy.
Source: BNNBloomberg - 🏆 83. / 50 Read more »