High-grade quiets after strong back-to-back volume; FHLB on tap

By Cristal Cody

Tupelo, Miss., Aug. 14 – After investment-grade companies tapped the primary market with more than $21 billion of bonds on Monday and Tuesday, supply stayed quiet on Wednesday as stocks tanked.

The S&P 500, Dow Jones industrial average and the Nasdaq all closed down around 3%.

Coming up on Thursday, FHLBank System plans to price new five-year global bonds.

Meanwhile, two issuers are eying possible investment-grade bond offerings.

Assurant Inc. (Baa3/BBB/) on Tuesday completed a two-day round of fixed income investor calls via J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Also on Tuesday, split-rated issuer Gaming and Leisure Properties, Inc. (Ba1/BB+/BBB-/) held fixed income investor calls for a possible deal that would be run off the high-grade desk, sources report.

BofA Securities, Inc., Fifth Third Securities, Inc., J.P. Morgan Securities and Wells Fargo Securities are the arrangers.

Deal volume has been led this week by Exxon Mobil Corp.’s $7 billion seven-tranche offering of notes on Tuesday.

Investment-grade issuers priced nearly $10 billion of bonds on Tuesday after bringing more than $11 billion of paper to the primary market on Monday.

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