Brookfield reopens notes; credit spreads tighten on Fed measures; corporate outflows rise

By Cristal Cody

Tupelo, Miss., April 9 – The high-grade bond market finished the week with more than $38 billion of new issuance following a reopening priced over the short session on Thursday.

Brookfield Finance Inc. priced a $150 million add-on to its 4.35% senior notes due April 15, 2030 that were first sold on Tuesday.

Market tone revved up on Thursday following the Federal Reserve’s announcement of additional stimulus measures in response to the coronavirus economic fall-out.

High-grade credit spreads came in about 24 basis points on the day after firming about 25 bps over the first three sessions.

The Markit CDX North American Investment Grade 33 index closed at a spread of 81.10 bps, nearly 50 bps tighter on the week.

Higher corporate investment-grade funds outflows were reported for the past week ended Wednesday, according to Refinitive Lipper US Fund Flows on Thursday.

Outflows rose to $15.13 billion from $8.47 billion of outflows in the previous week but down from the $38.02 billion of outflows posted in the week prior and $35.59 billion of outflows reported in the week ended March 18.

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