Empty high-grade primary market closes quiet week; JPMorgan, Goldman paper tightens

By Aleesia Forni and Cristal Cody

Virginia Beach, Dec. 19 – The investment-grade bond market was silent to end the week on Friday.

Most issuers stayed on the sidelines during the last full trading week of 2014, electing to hold off until the new calendar year to bring new deals to market.

The week’s total new issuance sits at $500 million from a single deal priced by Nederlandse Waterschapsbank NV on Thursday.

This follows last week’s slower $7 billion tally, a sharp decline compared to the first week of December, which saw more than $49 billion of supply.

Meanwhile, corporate investment-grade bond funds saw outflows of $79.8 million, according to Lipper.

This compares to the previous week’s inflows of $2.01 billion.

The year-to-date total sits at more than $84 billion of inflows into high-grade bond funds.

Secondary trading was mostly quiet as desks begin to thin in front of the Christmas and New Year’s holidays, market sources said on Friday.

The Markit CDX North American Investment Grade series 23 index firmed 1 basis point to a spread of 64 bps.

JPMorgan Chase & Co.’s 3.625% senior notes due 2024 traded 5 bps tighter in Friday’s session, a source said.

Citigroup Inc.’s 3.75% notes due 2024 were mostly unchanged on the day, according to a market source.

Goldman Sachs Group Inc.’s 3.85% notes due 2024 tightened 3 bps, a market source said.

JPMorgan notes firm

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) tightened 5 bps to 115 bps bid on Friday, according to a market source.

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

The financial services company is based in New York City.

Citigroup stable

Citigroup’s 3.75% notes due 2024 (Baa2/A-/A) traded mostly flat on Friday at 128 bps bid, a market source said.

Citigroup sold $1.25 billion of the 10-year notes on June 9 at Treasuries plus 115 bps.

The bank is based in New York City.

Goldman tightens

Goldman Sachs’ 3.85% notes due 2024 (Baa1/A-/A) headed out 3 bps tighter at 137 bps bid, according to a market source.

The notes traded wider on Wednesday at 154 bps offered.

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.

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