RBC prices to close frenzied week; Canadian Pacific Rail firms; financial paper soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Feb. 27 – Royal Bank of Canada came to the primary on Friday to close out a blockbuster week for investment-grade bonds.

The market saw more than $42 billion of new issuance enter the primary this week, making it the busiest week of 2015 so far.

RBC sold Friday’s lone issue, pricing $1.4 billion of senior notes (Aa3/AA-/AA) due March 6, 2020 in fixed- and floating-rate tranches, according to a market source.

The sale included $550 million of five-year floating-rate notes and $850 million of 2.15% notes due 2020.

Meanwhile, Lipper reported inflows of $1.318 billion into corporate high-grade bond funds for the week ended Feb. 25.

The total was down from last week’s inflows of $2.985 billion, bringing the year-to-date total inflows to $19.484 billion.

Investment-grade bonds were mixed headed into the weekend.

Canadian Pacific Railway Co.’s 2.9% notes due 2025 tightened 4 basis points in the secondary market.

Southwestern Energy Co.’s senior notes (Baa3/BBB-/) traded 2 bps to 5 bps weaker over the day.

JPMorgan Chase & Co.’s 3.125% notes due 2025 widened about 6 bps.

Bank of America Corp.’s 4% notes due 2025 were quoted 4 bps softer.

The Markit CDX North American Investment Grade index was unchanged at a spread of 61 bps.

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