Light deal volume forecast; Teva holds tight; Citigroup firms; Morgan Stanley steady

By Cristal Cody

Eureka Springs, Ark., July 22 – Investment-grade issuers took a break on Friday, while new bonds priced over the week stayed tight in secondary trading.

Deal volume is expected to stay light at about $20 billion for the week ahead with the Federal Reserve’s policy meeting set for Tuesday and Wednesday, according to market sources.

Teva Pharmaceutical Finance Netherlands III BV’s $15 billion of fixed-rate senior notes (Baa2/BBB/) that priced in six tranches on Monday to help finance its acquisition of the generics business of Allergan plc remained strong in the secondary market as the week closed.

Citigroup Inc.’s 4.125% subordinated notes due 2028 tightened about 10 basis points on Friday and traded 13 bps better than issuance.

Morgan Stanley’s 3.125% global medium-term notes due 2026 priced on Wednesday headed out mostly unchanged over the session but remained better than issuance.

The Markit CDX North American Investment Grade index ended the day about 1 bp better at a spread of 71 bps.

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