Riding The Wave Of Good News, Bank Of America, Citi And Goldman Are Selling Bonds Today


After Bank of America’s positive earnings report and decent news from Morgan Stanley, banks are riding a wave of good news. Just take a look at financial stocks — they’re having a stellar day.

No one knows how long this will last, so Goldman, Citi and Bank of America are going to take this opportunity to sell bonds, Bloomberg reports.

Bank of America, the second-largest U.S. lender, is marketing 10-year notes in a benchmark offering, which are typically at least $500 million, according to a person with knowledge of the transaction. Goldman Sachs may sell notes due in 2015 as well as 10-year debt, another person said. Citigroup may issue its first 30-year bonds in more than two years in a benchmark sale, another person said while declining to be identified because terms aren’t set.

Some more details on the sale: Bloomberg’s sources say that Goldman’s 10-year bonds may pay a 385 basis point spread.

The will be a $250 million of Goldman’s bonds due in January 2015 with a 350 basis point spread. As for Citi, it looks like they’re going to sell 30 year bonds that yield 300 basis points more than Treasuries.