American International Group Sells $2 Billion of Bonds.

Bonds issued by American International Group Inc. rose in the secondary market, according to Trace, the bond information system in the prices of the Financial Industry Regulatory Authority.

The insurance debt sold yesterday for the first time since 2008 his rescue by the U.S. government. The New York-based company $ 500 million of 3.65 percent notes due January 2014 rose 0.83 percent to 100.8 cents, from 8:39 am in New York, the tracking data show. The bond yields 179 basis points, points more than Treasuries of similar maturity after issuing a 295 basis points spread.

AIG's $ 1.5 billion of debt of 6.4 percent due December 2020 rose 0.33 percent to 100.07 cents, a spread of 349 basis points, the tracking data show. The notes were issued with a relative yield of 362.5 basis points.

"It was a good deal, since it was relatively cheap," said Michael Donelan, who oversees $ 3.5 billion in bonds as chief operating officer and portfolio manager at the head of Ryan Labs Inc. in New York. "The grant price, but not as much as we would have expected."