High-grade supply thins; light volume on tap for week ahead, November; Duke, BNG eye deals

By Cristal Cody

Tupelo, Miss., Oct. 26 – The investment-grade primary market stayed quiet on Friday as the week closed out short of supply forecasts with volatility scaring off issuers.

More than $14 billion of bonds, including $6 billion of corporate issuance, priced over the week.

Syndicate sources had expected about $15 billion to $20 billion of deal volume.

New issuance in the week ahead is expected to remain thin while November also will offer few days of pricing action due to the mid-term elections, the Federal Reserve’s monetary policy meeting and the Veterans Day and Thanksgiving Day holidays, sources said.

About $15 billion to $20 billion of issuance is forecasted for the upcoming week, with as little as $5 billion of supply anticipated, according to syndicate sources.

For November, syndicate sources expect about $75 billion to $85 billion of deal volume.

A couple of issuers intend to tap the primary market in the near-term horizon.

Duke Energy Carolinas LLC is marketing a benchmark-sized offering of green first and refunding mortgage bonds.

Bank Nederlandse Gemeenten NV also plans an offering of three-year sustainable bonds.

Bonds were mixed in the secondary market on Friday.

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