Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2012-11-15/goldman-sachs-said-to-plan-offering-of-fixed-floating-debt

Bloomberg News

Goldman Sachs Sells $1.75 Billion of Fixed-, Floating-Rate Bonds

November 15, 2012

Goldman Sachs Group Inc. (GS:US) raised $1.75 billion in a sale of fixed- and floating-rate notes after relative yields on bank bonds declined by more than half this year.

The lender issued $1.25 billion of 1.6 percent debt maturing in November 2015 that yields 130 basis points more than similar-maturity Treasuries and $500 million of two-year floating-rate securities that pay 100 basis points more than the three-month London interbank offered rate, according to data compiled by Bloomberg. The bonds are expected to be rated A3 by Moody’s Investors Service, Bloomberg data show.

Yields on Goldman Sachs’s $2.25 billion of 3.3 percent securities maturing in May 2015 have declined about 178 basis points to 1.41 percent yesterday since the New York-based lender issued the notes six months ago, according to Trace, the bond- price reporting system of the Financial Industry Regulatory Authority. The yields of those debentures traded yesterday at 107.9 basis points more than Treasuries. A basis point is 0.01 percentage point.

The extra yield investors demand to hold debt of Goldman Sachs instead of government securities has dropped by about half this year to 213 basis points yesterday, from 421 at year-end, according to Bank of America Merrill Lynch index data. The average spread on bank debt in the U.S. has tightened 207 basis points to 177 in the same period. The measure reached 164 basis points on Oct. 17, the tightest since 2007, the index data show.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus