Financials lead charge during $16 billion day for high-grade primary; Ford Credit soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 21 – Issuers poured into the primary market on Monday, pricing $16.35 billion of high-grade paper following Thursday’s decision from the Federal Reserve to hold rates steady at the conclusion of its two-day policy meeting.

Financial issuers accounted for the bulk of the day’s new issuance.

In the largest trade of the day, UBS Group Funding (Jersey) Ltd. issued $4.3 billion of notes in three tranches due 2020 and 2025.

Wells Fargo & Co. issued $2.5 billion of holdco notes at the tight end of talk, and BNP Paribas SA priced $1 billion 10-year tier 2 subordinated notes.

Utilities also had a solid showing on Monday, with Dominion Resources Inc. pricing an upsized offering, while Louisville Gas and Electric Co. and Kentucky Utilities Co. each sold two-part deals, respectively, around 20 basis points tighter than initial price thoughts.

Praxair Inc., Applied Materials Inc., Gulfstream Natural Gas, Swedish Export Credit Corp., American Honda Finance Corp., A.P. Moller – Maersk A/S and Federal Realty Investment Trust were also in the day’s market with new deals.

Investment-grade bank and financial paper traded mostly flat to wider on Monday.

Ford Motor Credit Co. LLC’s 4.134% senior notes due 2025 widened 7 bps from Friday.

The Markit CDX North American Investment Grade 25 index rolled to a new series on Monday and ended 3 bps wider at a spread of 81 bps.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.