Goldman markets new bonds after perpetual note deal this week – BNN Bloomberg

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Goldman markets new bonds after perpetual note deal this week – BNN Bloomberg

(Bloomberg) — Goldman Sachs Group Inc. is in the market for investment-grade bonds, just two days after issuing perpetual notes, as the bank appeals to investors after its surprisingly strong first-quarter results.

The bank will sell fixed-rate and variable-rate notes in two parts on Thursday, according to a person with knowledge of the matter. The longest part of the offering, an 11-year note callable after 10 years, will yield 1.22 percentage points above the Treasury, said the person, who asked not to be identified because they don’t is not allowed to talk about it. The first discussions were around 1.5 percentage points.

JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. combined to issue $21.25 billion in investment-grade bonds this week, the lion’s share of market activity.

Morgan Stanley sells $8 billion in big bank bonds (2)

Goldman’s deal could signal a return to a more normalized pace of debt issuance for the firm after a lackluster 2023, Arnold Kakuda, Bloomberg Intelligence senior banking analyst, wrote in a note.

Its “senior debt sales of less than $10 billion in 2023 could normalize and approach $20 billion this year,” he said. This would remove “the positive bond issuance technique it has enjoyed relative to Morgan Stanley, one of the most active debt issuers among its peers since 2023.”

A representative for Goldman Sachs did not respond to a request for comment.

Citizens Financial Group Inc. also launched an operation Thursday, the first major regional bank to join the bond wave since releasing first-quarter results. Peers including PNC Financial Services Group Inc., US Bancorp and KeyCorp also disclosed their performance in early 2024, freeing up room for a possible bond issuance.

(Updates with size and price margin.)

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