Spreads Tighten On AT&T After Bond Buying Rally

  • 26 Nov 2001
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Credit-default protection tightened more than 30 basis points on AT&T following buyside demand for a USD10.9 billion global note offering it issued Nov. 15. New York-based credit derivatives traders reported that the U.S. long-distance telephone and cable giant was among the most heavily traded last week. Spreads on AT&T tightened to about 161bps last Tuesday from 210bps a week earlier as interbank market players looked to sell protection. "Essentially what happened was the bond deal was priced very cheap and it caused a buying rally, which brought spreads in," one trader said. The multi-part global bond offering was the fourth-largest corporate bond issue ever. Some USD7 billion was in dollar-denominated notes and bonds while the remaining portion was split into two euro-denominated tranches. The U.S. offering was sold in three portions, a USD1.5 billion 2.58% five-year tranche, a USD2.75 billion 2.78% 10-year tranche and a USD2.75 billion 2.95% 30-year tranche. Press officers at AT&T did not return calls.

According to Rosemarie Kalinowski, a rating analyst at Standard & Poor's in New York, AT&T's BBB plus rating will remain on credit watch for a possible downgrade, despite the recent bond sale because the company has suffered a steep decline in long-distance voice revenue. The revenue drop is expected to continue through next year because of the growth of the competing wireless industry and ongoing competition from the regional telephone companies.

  • 26 Nov 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 414,341.60 1584 9.05%
2 JPMorgan 376,530.42 1722 8.23%
3 Bank of America Merrill Lynch 357,892.56 1291 7.82%
4 Goldman Sachs 265,958.80 913 5.81%
5 Barclays 263,382.44 1050 5.75%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 44,979.63 190 6.72%
2 Deutsche Bank 37,019.66 134 5.53%
3 BNP Paribas 35,303.69 205 5.28%
4 JPMorgan 33,752.71 110 5.04%
5 Bank of America Merrill Lynch 32,865.23 106 4.91%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,398.41 104 8.72%
2 Morgan Stanley 18,608.72 99 7.25%
3 Citi 17,768.49 110 6.92%
4 UBS 17,372.80 70 6.77%
5 Goldman Sachs 17,228.66 97 6.71%