Usually a bad sign.. News.. DJ UPDATE: Wells Fargo Sells $1.5 Bln In US Markets Monday -Source
(Updates with sale taking place, more details throughout.) By Patrick McGee Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Wells Fargo & Co. (WFC) completed its $1.5 billion sale Monday of 2.625% five-year notes priced to yield 2.68%, for a spread to Treasurys of 175 basis points, a person familiar with the deal said. The bonds were expected to be rated A2 by Moody's Investors Service, A-plus by Standard & Poor's, and AA-minus by Fitch Ratings. S&P downgraded Wells, along with 14 other banks, on Nov. 30 when it implemented new ratings criteria. Wells Fargo Securities ran the pricing, the person said, with the support of 19 other banks. The deal represents the largest financial-sector issue to hit the U.S. markets since Nov. 14, when HSBC Holdings borrowed $1.65 billion, according to data provider Dealogic. The last time a U.S.-based bank issued so much was Oct. 19, when J.P. Morgan floated $1.75 billion. Issuance from the financial sector has dwindled in recent months amid heightened market volatility. Total borrowing among investment-grade banks in the U..S market has averaged just $11.7 billion over the last four months, compared with $39.6 billion in the first seven months of the year, data from Dealogic show. Wells Fargo also issued $1 billion from the U.S. market on Nov. 9.
Studies show a stock most always drops following a bond offering., this is s dooozi.
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