Primary action slows; American Financial prices $350 million; AT&T, Verizon mostly soften

By Cristal Cody

Tupelo, Miss., May 25 – Primary action slowed in the high-grade bond market on Thursday following nearly $40 billion of volume week to date, sources report.

American Financial Group, Inc. sold $350 million of 30-year senior notes.

NOVA Chemicals Corp. also priced a $2.1 billion split-rated two-tranche offering of notes.

Little market activity is expected on Friday with the financial markets set to close at 2 p.m. ET for the long Memorial Day holiday weekend.

The Markit CDX North American Investment Grade index closed the day mostly flat at a spread of 62 basis points.

In secondary trading, bonds in the telecommunications sector mostly softened on Thursday.

AT&T Inc.’s notes (Baa1/BBB+/A-) traded about 3 bps to 4 bps weaker.

AT&T’s 4.25% notes due March 1, 2027 softened 4 bps over the session to 173 bps bid, according to a market source. Its 5.45% notes due March 1, 2047 eased 3 bps to 224 bps bid on Thursday.

Verizon Communications Inc.’s notes (Baa1/BBB+/A-) were mixed.

Verizon’s 4.125% notes due March 16, 2027 eased 2 bps in secondary trading to 149 bps bid, a market source said. Its 5.5% notes due March 16, 2047 firmed about 1 bp to 204 bps bid.

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