Primary wraps $21 billion week; Bank of America firms; JPMorgan, Morgan Stanley soft

By Aleesia Forni and Cristal Cody

Virginia Beach, June 19 – The investment-grade bond market could see another busy week ahead to follow the more than $21 billion of supply priced this week, but potential volatility spurred by the negotiations in Greece will play a large role in the amount of supply that will hit the tape.

Around $25 billion to $30 billion of new issuance is predicted in the coming week.

Meantime, Lipper reported $161 million of outflows from corporate high-grade funds for the week ended June 17, bringing the year-to-date total to roughly $28.9 billion of inflows.

In the secondary market, Bank of America Corp.’s 4% notes due 2025 traded 4 basis points better over the day.

Paper from Citigroup Inc., Goldman Sachs Group Inc. and Barclays plc was unchanged.

JPMorgan Chase & Co.’s 3.125% notes due 2025 traded 2 bps weaker on Friday.

Morgan Stanley’s 2.65% notes due 2020 widened 3 bps.

The Markit CDX North American Investment Grade series 23 index headed out modestly tighter to unchanged at a spread of 68 bps.

“After trading in approximately a 2 bp range in the second half of May, CDX.IG has become increasingly volatile in June, trading in a 7 bp range and reaching a new wide for series 24 earlier this week,” Barclays Bank plc analysts said in a report on Friday.

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