FS Investment, Export Development Canada bring deals; JPMorgan, Bank of America firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 25 – FS Investment Corp. and Export Development Canada sold new bonds on Tuesday during what is expected to be the last bout of issuance ahead of the Thanksgiving holiday.

The session saw $1,325,000,000 of new issuance, pushing the week’s total to $10.5 billion of supply.

The new offering from FS Investment was upsized to $325 million from initial thoughts of $250 million.

In other primary action, Export Development Canada sold $1 billion of five-year notes.

Sources are expecting the rest of the week to remain muted to close out what has been a busy month for the investment-grade bond market.

The primary has seen more than $110 billion of paper price during the month of November.

Investment-grade credit spreads continued to tighten modestly over the session, while bank and financial paper traded flat to stronger in the secondary market, according to market sources.

The Markit CDX North American Investment Grade series 23 index tightened 1 basis point to a spread of 61 bps.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 have firmed 8 bps in secondary trading since Friday, a source said.

Bank of America Corp.’s 4% notes due 2024 were quoted 2 bps tighter in the secondary market.

Citigroup Inc.’s 3.75% notes due 2024 ended flat, a source said.

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