Monday, December 1, 2008

Less faith more credit

(A week out of the gate and a new synthetic treasury offering already ties the largest corporate bond offering. I wasn't kidding when I wrote that they can keep that rebate check , I want part of the takedown - AM)

By Gabrielle Coppola

Dec. 1 (Bloomberg) -- Bank of America Corp., the biggest U.S. retail bank, sold $9 billion of debt in the largest bank bond sale since the Federal Deposit Insurance Corp. agreed to guarantee the debt.

Citigroup Inc. and Wells Fargo & Co. are also marketing FDIC-backed debt in the second week of bank issuance spurred by the FDIC’s Temporary Liquidity Guarantee Program.

New York-based Citigroup plans to sell FDIC-backed notes that will float with three-month Libor, according to a filing today with the U.S. Securities and Exchange Commission.

Wells Fargo, the San Francisco-based bank buying Wachovia Corp., hired Bank of America, Goldman Sachs, Morgan Stanley and UBS AG to help sell the debt, according to an offer document seen by Bloomberg News.

Bank of America’s $9 billion offering is the largest a bank has issued through the FDIC’s program so far. GlaxoSmithKline Plc raised $9 billion of fixed- and floating-rate notes in May in the largest sale of corporate debt this year, Bloomberg data show. Goldman, Morgan Stanley and JPMorgan Chase & Co. sold a combined $17.25 billion of FDIC-backed bonds last week.

No comments: