Goldman selling high-grade bonds for third time since March
Goldman Sachs Group Inc. sold US$3.5 billion in bonds Wednesday, the third time the company or one of its units has borrowed in the investment-grade market in just over two months.
The bonds were issued by unit Goldman Sachs Bank USA and include both fixed-to-floating rate and floating-rate notes, according to a person familiar with the matter. It’s the entity’s second bond sale this year, following a $3 billion offering in March that was its first since 2019.
The fixed-to-float tranche in Wednesday’s offering yields 0.68 percentage point over Treasuries, said the person, who asked not to be identified because they’re not authorized to speak about it. Earlier discussions were around 0.9 percentage point. A representative for Goldman Sachs, which is managing the bond sale, wasn’t available to comment.
The bank unit was among three firms in the investment-grade market Wednesday, after economic data fueled a rally in Treasuries and reinforced bets that the Federal Reserve will start cutting interest rates by September.
Goldman Sachs Group sold $5 billion of notes in April, following stronger-than-expected first-quarter results.