Swedish Export Credit new issue caps off week; Xerox tight; Deutsche Bank mostly unchanged

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 21 – Swedish Export Credit Corp. priced a $1 billion offering of five-year notes on Friday, closing out a quiet week for investment-grade bonds.

The issue sold in line with price guidance.

Roughly $8.3 billion of new high-grade issuance hit the primary this week, with the bulk of that total coming to market on Monday.

Meantime, corporate investment-grade bond funds saw their fourth-straight week of outflows.

This week’s $1.1 billion of outflows follows last week’s outflows of $1.84 billion and brings the year-to-date total to $25.1 billion of inflows.

Most of the market spent the day “watching stocks drop, not much interest in bonds,” one source said.

Xerox Corp.’s 3.5% senior notes due 2020 that priced at the start of the week remained more than 10 basis points tighter in secondary trading going out on Friday.

Deutsche Bank AG’s new 2.95% notes due 2020 traded mostly unchanged.

Hershey Co.’s 3.2% notes due 2025 were not active in secondary trading over the session but continue to trade better than issuance.

The Markit CDX North American Investment Grade index widened 2 bps over the day to a spread of 83 bps.

Swedish Export prices

Swedish Export Credit priced $1 billion of 1.75% notes due Aug. 28, 2020 on Friday at mid-swaps plus 20 bps, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.819 to yield 1.788%.

The issue sold in line with guidance set in the mid-swaps plus 20 bps area.

Bookrunners were BofA Merrill Lynch, BNP Paribas Securities Corp., Nomura International and J.P. Morgan Securities LLC.

Based in Stockholm, Svensk is the lender to Sweden’s export industry.

Xerox stays tight

The new 3.5% senior notes due 2020 from Xerox traded early Friday at 198 bps offered in the secondary market, a trader said.

The company sold $400 million of the notes (Baa2/BBB/BBB) on Monday at a spread of Treasuries plus 212.5 bps.

The maker of office machines is based in Norwalk, Conn.

Deutsche Bank steady

Deutsche Bank’s 2.95% notes due 2020 were mostly unchanged at 141 bps offered in late afternoon trading on Friday, a trader said.

The notes (A3/BBB+/A) priced in a $1 billion tranche on Monday at Treasuries plus 143 bps.

The bank is based in Frankfurt.

Hershey quiet

Hershey’s 3.2% notes due 2025 were not seen in secondary trading on Friday and last traded on Thursday at 99 bps offered, a trader said.

Hershey sold $300 million of the 10-year notes (A1/A) with a spread of 105 bps over Treasuries on Tuesday.

The chocolate, candy and confectionary product maker is based in Hershey, Pa.

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