Week’s supply tops $49 billion; AT&T firms; Verizon eases; Goldman, JPMorgan soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 5 – The investment-grade bond market closed a frenzied week of new issuance on a quiet note on Friday.

The opening week of December saw a flood of supply, with $49.95 billion of new paper priced during the week.

The primary market took a breather on Friday and saw no new deals price, with the market focused on the release of non-farm payrolls data.

The economy added 321,000 jobs in the month of November, while the unemployment rate remained at 5.8%.

Meanwhile, cash continues to flow into investment-grade bond funds.

Lipper reported inflows of $1.27 billion for the week ending Dec. 3, up from $880 billion for the week ended Nov. 26.

This pushes the year-to-date total inflows into corporate investment-grade funds to more than $81 billion.

Sources are expecting around $15 billion of activity next week ahead of the end of the year slowdown.

“Light calendar next week,” a source said. “Nothing like this week.”

Investment-grade bonds traded mostly weaker on Friday, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 63 bps.

AT&T Inc.’s 3.9% notes due 2024 were among the exception and tightened 4 bps over the session, a source said.

Verizon Communications Inc.’s 3.5% notes due 2024 eased 2 bps, a source said.

In the bank and financial space, Goldman Sachs Group Inc.’s 3.85% notes due 2024 traded 2 bps weaker, according to a market source.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 eased 1 bp in secondary trading, a market source said.

AT&T tightens

AT&T’s 3.9% notes due 2024 (A3/A-/A) firmed 4 bps on Friday to 133 bps bid, a source said.

AT&T sold $1 billion of the notes on March 5, 2014 at a spread of Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Verizon eases

In other trading, Verizon’s 3.5% notes due 2024 (Baa1/BBB+/A-) eased 2 bps to 138 bps bid, according to a market source.

Verizon sold $2.5 billion of the notes at Treasuries plus 135 bps on Oct. 22.

The telecommunications company is based in New York City.

Goldman softens

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) traded 2 bps weaker at 136 bps bid on Friday, a market source said.

Goldman Sachs sold $2.25 billion of the notes on June 30 at Treasuries plus 135 bps.

The financial services company is based in New York City.

JPMorgan edges wider

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) eased 1 bp to 118 bps bid during the session, according to a market source.

JPMorgan sold $2 billion of the notes on May 6, 2014 at 110 bps plus Treasuries.

The financial services company is based in New York City.

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