Export Development Canada prices; post-holiday supply eyed; Kraft Heinz softens

By Cristal Cody

Tupelo, Miss., Feb. 14 – Export Development Canada priced $2 billion of three-year global notes in the high-grade primary market on Friday.

Investment-grade issuers sold more than $31 billion of bonds over the week, in line with the $25 billion to $35 billion of supply on average anticipated.

Looking ahead, deal volume is expected to stay strong with about $25 billion to $30 billion of issuance forecast for the holiday-shortened week ahead, according to syndicate sources.

The bond markets will be closed on Monday for the Presidents Day holiday.

A potential $5 billion-plus offering of notes (Baa2/BBB/) from Otis Worldwide Corp. as part of its spin-off from United Technologies Corp. is expected in the primary market in the week ahead, sources report.

The offering will follow Carrier Global Corp.’s $9.25 billion six-part sale of senior notes on Thursday as part of its spin-off from United Technologies.

In the secondary market, Kraft Heinz Foods Co.’s senior notes (Baa3/BBB/BB+) traded heavily on Friday after the company was downgraded to junk by S&P Global Ratings and Fitch Ratings, according to market sources.

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