Writing IOUs: Citibank Raises $5 Billion in First Bank-Level Bond Since 2019

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Banks issuing bonds again to raise funds to pay bills today? Writing IOUs intended to fail?

At this rate, it looks like every bank will be put at risk to ensure massive systemic risk to maximize the public bailout.

Hello 2008 we’re coming back with a vengeance.

via YAHOO:

The New York-based bank, the operating company of Citigroup Inc. which offers saving accounts, credit cards and mortgages, sold $5 billion in fixed- and floating-rate notes in three parts, according to a person familiar with the matter. The longest portion, a $2.5 billion five-year fixed-rate tranche, yielded 1.18 percentage point over Treasuries after earlier discussions for about 1.4 percentage point, said the person, who asked not to be identified as the details are private.

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Citigroup managed the bond sale. A representative for the bank declined to comment.

Bank operating company debt footprints have shrunk significantly after massive deposit inflows during the pandemic, Jesse Rosenthal, head of US financials at CreditSights Inc., said in a note Tuesday.

h/t WhatCanIMakeToday