Bankers Trust Latest To Tap the Markets, With a $150M Issue

Bankers Trust New York Corp., following other recent bank forays into the debt market, has issued $150 million in 10-year subordinated notes.

"With the bond rally this morning, we expect the issue to sell out by the end of the day," a company spokesman said Wednesday.

Last week, six banks issued a combined $950 million in bonds. Two of those issues were in 10-year paper - $300 million by Mellon Bank Corp. and $125 million by First Bank System Inc.

The Bankers Trust issue was priced at 99.33 on Tuesday to yield 7.125%, or about 85 basis points over comparable Treasuries.

Salomon Brothers Inc. analyst Ethan Heisler said the spread on Bankers Trust's debt - about 20 basis points wider than that on similarly rated Chase Manhattan Corp. debt - was appropriate.

He pointed out that Bankers Trust's 1995 revenues, although higher than 1994's, still have not matched their 1993 level. "This is still a company that has a lot of issues on the table that they have to address," Mr. Heisler said.