Statoil ASA, Norway’s largest oil company, and Citigroup Inc. led weekly bond sales of $38 billion in the U.S., the busiest in six periods, as relative yields widened.
Statoil raised $4 billion of debt in five parts while Citigroup issued $1.3 billion of fixed- and floating-rate bonds, according to data compiled by Bloomberg. Offerings were the most since $55.8 billion in the five days ended Sept. 27 and compare with a 2013 weekly average of $30 billion.
The extra yield investors demand to own corporate bonds rather than government debentures rose to 208 basis points yesterday from 206 basis points on Nov. 1, according to Bank of America Merrill Lynch index data. Yields decreased 1 basis point to 3.92 percent.
Statoil, based in Stavanger, raised $4 billion of debt on Nov. 5 with maturities ranging from five to 30 years, Bloomberg data show. The largest portion of the five-part deal, $1 billion of 3.7 percent notes due March 2024, yielded 105 basis points more than similar-maturity Treasuries.
The third-biggest U.S. bank by assets, New York-based Citigroup, sold $800 million of 1.3 percent, senior unsecured notes at an 80 basis-point spread and $500 million of floating-rate securities that yielded 68 basis points more than the three-month London interbank offered rate, Bloomberg data show.
Sales of investment-grade debentures reached at least $34.7 billion, compared with $25.9 billion last week and a 2013 weekly average of $22.6 billion, Bloomberg data show. Offerings of speculative-grade bonds were $3.3 billion, compared with $8.9 billion last week and a 2013 weekly average of $7.3 billion, Bloomberg data show. A basis point is 0.01 percentage point.
High-risk, high-yield bonds are rated below Baa3 by Moody’s Investors Service and lower than BBB- at Standard & Poor’s.
Issuers planning sales include U.S. Concrete Inc. with a $200 million offering of seven-year notes, Bloomberg data show.
JPMorgan Chase & Co. and Bank of America Corp. are the two biggest U.S. banks by assets, Bloomberg data show.