High-grade primary takes a pause; EDC sets price talk; Boeing, Time Warner notes tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 21 – Export Development Canada announced plans to bring a new offering of bonds to market as the primary market took a pause on Wednesday amid what has been a weaker earnings season so far.

The government-backed agency set price talk for a proposed $1 billion offering expected to come to market later this week.

Elsewhere, market activity was light during the session, with no new deals entering the primary.

One market source noted that he wouldn’t read too much into the quiet session, while another source added that the day’s empty calendar was just “an anomaly” and not so much a sign of broader weakness in the investment-grade space.

With the empty trading day, the week’s total supply remains at $12 billion, so far falling short of what players has expected to be a $20 billion week.

Investment-grade bonds were mixed in secondary trading over the day, while credit spreads leaked wider.

Boeing Co.’s senior notes (A2/A/A) tightened 1 bp to 7 bps after the company reported strong third-quarter earnings and raised its revenue and profit guidance for the year on Wednesday.

Time Warner Inc.’s notes (Baa2/BBB) firmed 1 bp to 6 bps in secondary trading over the day.

Morgan Stanley’s 4% senior notes due 2025 headed out 1 bp softer in secondary trading.

The Markit CDX North American Investment Grade 25 index closed 1 bp weaker at a spread of 82 bps.

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