NationsBank's Texas affiliate and NBD Bank issued a total of $275 million in one-year bank notes this week.
The lead underwriter on both issues was NationsBanc Capital Markets. The issues, noncallable for three months, were priced at par.
"The bank note program is business as usual," said Ethan M. Heisler, a bank bond analyst at Salomon Brothers Inc.
"Banks have increasingly relied on this source of funding because their loan growth has been outstripping their deposit growth," said Mr. Heisler.
The $175 million of NationsBank Texas notes had a coupon of 6.15%, while the $100 million of NBD bank notes had a 6.13% coupon. Analysts said a difference of two basis points was reasonable, given the current bank ratings.
Both issues are due Aug. 28, 1996.
Separately, Washington Mutual Savings Bank issued $150 million in notes due Aug. 15, 2005.
Analysts said Washington Mutual was an infrequent issuer, which might account for a price some considered rich for a company that carries a BBB rating from Standard & Poor's Ratings Group and a Baa1 from Moody's Investors Service.
"The deal looked full, although people can buy Citicorps and NationsBanks any day of the week," said a bank bond trader. " Investors may be looking for new names."
The Washington Mutual notes have a 7.25% coupon and are priced at 99.228 to yield 7.36%, or 82 basis points over comparable Treasuries.
Noncallable for life, the notes carry the same specific ratings as the thrift's outstanding debt.