(Bloomberg) --Goldman Sachs Group Inc. is the latest Wall Street bank to tap the U.S. investment-grade bond market after reporting fourth-quarter results.
The lender is selling bonds in as many as six parts, according to a person familiar with the matter. The longest portion of the offering, a 21-year security, may yield around 1.4 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.
Financial companies are leading a rush to lock in still-attractive borrowing costs before the Federal Reserve hikes interest rates, potentially adding to volatility and market uncertainty. Citigroup Inc. and JPMorgan Chase & Co. both sold new bonds Tuesday.
Read more: Goldman Sachs to Lead Four U.S. High-Grade Bond Sales Wednesday
Goldman Sachs shares tumbled Tuesday after the firm’s stock traders posted a lackluster fourth quarter, another sign that the frenzied market activity spurred by the pandemic is cooling. Revenue from the bank’s trading operation slid 7%, missing analysts’ estimates for a small gain.
Goldman Sachs is the sole bookrunner on the sale, and proceeds will be used for general corporate purposes, the person said.
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