Does a monstrous amount of new corporate debt priced recently scare the World Bank?

"Not at all," said Paul Siegelbaum, chief of the World Bank's yen dollar funding division, who said the bank will price its $1.5 billion five-year global bond issue today as scheduled. The pricing was set for 10 a.m.

Price talk is five to seven basis points over comparable Treasuries. Industrial Bank of Japan Ltd. and Merrill Lynch & Co. are co-leads, with 12 co-managers.

Traditional buyers of World Bank paper tend to be institutions with conservative buying habits -- such as those restricted to buying triple-A paper -- that view the World Bank's high-quality debt as an alternative to Treasury and agency issues, Mr. Siegelbaum said.

"We don't feel that the large amount of corporate issuance is competing with us," he said.

More than $2.6 billion of new debt was priced yesterday, while slightly less than $4 billion worth of new paper was priced Tuesday. IDD Information Services figures for Tuesday showed 21 issues totaling $3.987 billion.

Though some deals worked well, plenty of paper was still unsold as of early yesterday afternoon, traders said. A syndicate desk member interviewed later in the day agreed that some overhang existed, but attributed it to heavy deal flow, not because buyers didn't have room. Once buyers had time to focus, "they've been cleaning them up," he said.

One source who tracks new issues agreed the heavy volume should have little effect on the World Bank's issue.

"It shouldn't get in the way," he said. "It slowed down some today anyway."

The source added that the bank has been offering semi-annual global offerings since 1989, so buyers know to make room for those issues.

New Issues

American Telephone and Telegraph Co. issued $500 million of 8.125% debentures due 2024. Noncallable for 10 years, the debentures were priced at 99.155 to yield 8.20%, or 60 basis points over comparable Treasuries. Moody's Investors Service rates the offering Aa3 and Standard & Poor's Corp. rates it AA. Morgan Stanley & Co. lead managed the offering.

Student Loan Marketing Association issued $500 million of floating-rate cap notes due 1997. The interest rate is capped at 4.80% for the first year to yield 60 basis points over three-month Treasury bills on a bond equivalent basis. The noncallable notes float weekly and pay quarterly. After the first year, the notes yield a spread of 75 basis points a year. Lehman Brothers lead managed the offering.

Comcast Corp. issued $300 million of 10.625% senior subordinated notes due 2012 at par. The noncallable notes were priced to yield 300 basis points over comparable Treasuries. Moody's rates the offering B1 and Standard & Poor's rates the B. Merrill Lynch managed the offering.

Federal Home Loan Mortgage Corp. issued $300 million of 4.40% step-up notes due 1997 and priced initially at par. Noncallable for a year, the coupon on the notes increases to 6.25% on July 17, 1993. Goldman, Sachs & Co. sole managed the offering.

Hilton Hotels Corp. issued $300 million of 7.70% senior notes due 2002. The noncallable notes were priced at 99.71 to yield 7.742%, or 85 basis points over comparable Treasuries. Moody's rates the offering A2 and Standard & Poor's rates it A. Merrill Lynch lead managed the offering.

Federal Home Loan Mortgage Corp. issued $200 million of 4.125% step-up notes due 1995 and priced initially at par. Noncallable for a year, the coupon increases to 5.125% on July 17, 1993. Goldman Sachs sole managed the offering.

Rogers Cantel issued $200 million of 11.125% senior subordinated guaranteed notes due 2002. The notes were priced at par to yield 445 basis points over comparable Treasuries. Moody's rates the offering B2 and Standard & Poor's rates it B. Merrill Lynch managed the offering.

Xerox Credit issued $150 million of 5.375% medium-term notes due 1995. The noncallable notes were priced at 99.756 to yield 5.46%, or 60 basis points over comparable Treasuries. Moody's rates the offering A2 and Standard & Poor's rates it A. Lehman Brothers sole managed the offering.

Alabama Power issued $100 million of 8.30% first mortgage bonds due 2022. Nonrefundable for five years, the bonds were priced at 98.827 to yield 8.407%, or 80 basis points over comparable Treasuries. Moody's rates the offering A1 and Standard & Poor's rates it A. Lehman Brothers won competitive bidding to underwrite the offering.

Savannah Electric & Power issued $30 million of 8.30% first mortgage bonds due 2022. Nonrefundable for five years, the bonds were priced at 98.75 to yield 8.414%, or 80 basis points over comparable Treasuries, Moody's rates the offering A1 and Standard & Poor's rates it A-plus. Goldman Sachs sole managed the offering.

Central Illinois Public Service issued a two-part first mortgage bond offering totalling $93 million. The first tranche consisted of 6.125% bonds due 1997. The noncallable bonds were priced at 99.517 to yield 6.239%, or 32 basis points over comparable Treasuries. The second consisted of $50 million of bonds due 2007. Noncallable for 10 years, the bonds were priced at 99.334 to yield 7.575%, or 70 basis points over comparable Treasuries. Moody's rates the offering offering Aa1 and Standard & Poor's rates it AA-plus. Morgan Stanley was lead manager. In secondary trading yesterday, high-grade bond prices ended flat to down an 1/8 in the long end as spreads widened and new issues continued to dominate the focus. Interest-rate sensitive junk bonds finished modestly higher, while distressed issues lost 1/4 to 1/2 point, traders said.

In the asset-backed market, Premier Auto Trust 1992-4 issued a two-part deal totaling $937.5 million, a source at Salomon Brothers confirmed.

The first tranche consisted of $900 million of 5.05% senior notes priced at 99.89 to yield 5.143%, or 77 basis points over comparable Treasuries. Moody's and Standard & Poor's rate the notes triple-A.

The second tranche consisted of $37.5 million of 5.35% certificates priced at 99.977 to yield 5.425%, or 105 basis points over comparable Treasuries. Moody's rates the offering A2 and Standard & Poor's rates it A-plus. The legal final maturity for the deal is Jan. 15, 1998.

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