High-grade primary action quiet; light volume predicted for week ahead; energy bonds mixed

By Cristal Cody

Eureka Springs, Ark., June 17 – Investment-grade issuers took a break on Friday to cap off a light week of volume.

Market sources predict issuance to stay quiet in the week ahead with less than $10 billion of volume forecasted in front of the June 23 Brexit vote.

High-grade bonds were mixed in secondary trading over the day.

Consolidated Edison Co. of New York, Inc.’s 3.85% debentures priced on Tuesday traded about 4 basis points better than issuance on the offered side.

Westar Energy, Inc.’s 2.55% green first mortgage bonds due July 1, 2026 traded about 7 bps wider than where they came on Monday.

Earlier in the day, Dell, Inc.’s 6.02% senior secured notes due 2026 were quoted about 6 bps weaker on Friday and more than 40 bps wider from a week ago.

The Markit CDX North American Investment Grade index ended the day unchanged to modestly tighter at a spread of 83 bps.

Consolidated Edison firms

Consolidated Edison Co. of New York’s 3.85% debentures due June 15, 2046 were quoted in the secondary market at 142 bps bid, 138 bps offered, a source said.

The company sold $550 million of the debentures (A2/A-/A-) on Tuesday at a spread of 142 bps over Treasuries.

Consolidated Edison of New York is an electric and gas utility and a subsidiary of Consolidated Edison, Inc., a New York-based holding company.

Westar Energy eases

Westar Energy’s 2.55% green first mortgage bonds due July 1, 2026 traded on Friday afternoon at 102 bps bid, 98.5 bps offered, according to a market source.

The company sold $350 million of the bonds (A2/A) on Monday at 95 bps over Treasuries.

Westar Energy is a Topeka, Kan.-based electric utility.

Dell softens

Dell’s 6.02% notes due 2026 were seen about 6 bps weaker at 428 bps offered early on Friday, according to a market source.

The bonds were quoted on June 9 at 386 bps offered.

Dell sold $3.75 billion of the notes (Baa3/BBB-/BBB-) on May 17 at Treasuries plus 425 bps.

The technology and services company is based in Round Rock, Texas.

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