Busy high-grade primary calendar forecast for week ahead; Enbridge, BP Capital tighten

By Cristal Cody

Eureka Springs, Ark., Nov. 23 – Investment-grade issuers took a break on Wednesday. No bonds priced in the primary market as staffing thinned ahead of the U.S. Thanksgiving Day holiday, sources reported.

Strong primary action is likely in the week ahead with about $20 billion to $25 billion of volume forecast, according to market sources. The deal calendar is expected to be heavy up until the Federal Reserve’s Dec. 13-Dec. 14 policy meeting when rates are widely forecast to rise.

Enbridge Inc.’s $1.5 billion of senior notes (Baa2/BBB+/) priced in two parts on Monday traded more than 10 basis points better in the secondary market on Wednesday.

The company’s 4.25% notes due 2026 traded at 186 bps bid, 183 bps offered, a source said. The $750 million of notes priced at a spread of 200 bps plus Treasuries.

Enbridge’s 5.5% notes due 2046 tightened to 239 bps bid, 236 bps offered in secondary trading. The $750 million tranche priced at a spread of 250 bps plus Treasuries.

BP Capital Markets plc’s $2 billion notes (A2/A-) brought to market in two tranches on Monday improved about 2 bps from issuance.

In other trading, Duke Energy Corp.’s 2.65% senior notes due 2026 firmed 1 bp on the day.

The Markit CDX North American Investment Grade index closed mostly unchanged at a spread of 74 bps.

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