Trailing US bank sector could appeal to buyside

摘要

Spreads on US bank bonds have lagged behind the rally in corporate credit, and that could offer investors a chance for decent pick-up as banks hit the market post-earnings in the days ahead. JP Morgan (A3/A-) was first out of the gate on Thursday, selling a US$3bn 10-year trade at Treasuries plus 145bp - spot on the low end of IPTs with no pricing progression at all. The deal offered a 10bp concession to the bank's curve, more than recent deals from industrials. It was trading 3bp inside reoffer on Friday.