GE Capital brings $4.5 billion; Rentenbank, Ford, FedEx price; GE flat; Verizon, AT&T soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 6 – General Electric Capital Corp., Landwirtschaftliche Rentenbank, Ford Motor Credit Co. LLC and FedEx Corp. brought $11 billion of new issuance to the investment-grade bond market on Tuesday.

General Electric Capital priced $4.5 billion of bonds, while Landwirtschaftliche Rentenbank raised $2 billion of bonds due 2025.

Investors flocked to FedEx’s new $2.5 billion issue of senior notes, with the deal attracting an orderbook that was more than four times oversubscribed.

The session also saw Ford Motor Credit issue $2 billion of notes.

In forward calendar news, the European Investment Bank set price talk for a planned offering of five-year notes during the session.

Sources are expecting an even busier primary for Wednesday and, despite a slow start to the new year, the week is expected to meet earlier forecasts of $25 billion of supply.

Investment-grade bonds and credit spreads remained weak on Tuesday, market sources said.

The Markit CDX North American Investment Grade series 23 index closed the day 2 basis points wider at a spread of 71 bps.

In the secondary market, General Electric Capital’s existing 10-year notes traded flat after widening 8 bps in the previous session, a source said.

Verizon Communications Inc.’s 4.15% senior notes due 2024 eased 4 bps in secondary trading.

AT&T Inc.’s 3.9% notes due 2024 headed out 2 bps weaker, according to a market source.

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