JPMorgan, NextEra, Quebec tap primary market; inflows rise; United Technologies eases

By Cristal Cody

Tupelo, Miss., Aug. 23 – JPMorgan Chase Bank, NA tapped the high-grade primary market on Thursday with a $1.25 billion offering of two-year floating-rate notes.

In other corporate issuance, NextEra Energy Capital Holdings Inc. priced a $75 million add-on to its floating-rate debentures due Aug. 28, 2021 that were first sold on Tuesday.

The SSA (sovereign, supranational, agency) primary market also saw its first deal of the week.

The Province of Quebec priced $500 million of long 30-year notes.

High-grade issuers have sold nearly $10 billion of corporate bonds week to date, in line with syndicate forecasts of about $5 billion to $10 billion of supply.

New issuance is expected to remain light until after the Labor Day holiday, according to syndicate sources.

For the week ended Aug. 22, Lipper US Fund Flows reported inflows of $2.68 billion, up from $1.45 billion of inflows reported in the prior week.

Market attention on Thursday focused on the start of the Federal Reserve Bank of Kansas City’s annual economic policy symposium in Jackson Hole, Wyo., which ends Saturday.

Investors also were digesting the Federal Reserve’s minutes from its July 31 to Aug. 1 monetary policy meeting that were released on Wednesday, with the prospect of a rate hike at the Sept. 25 to Sept. 26 meeting growing, a source said.

The Markit CDX North American Investment Grade 30 index was modestly softer on the day at a spread of 60 basis points.

In the secondary market, United Technologies Corp.’s new senior notes (Baa1/BBB+) softened about 3 bps to 4 bps.

JPMorgan brings floaters

JPMorgan Chase Bank priced $1.25 billion of floating-rate notes due Sept. 1, 2020 at Libor plus 23 bps on Thursday, according to a market source.

The notes (Aa3/A+/AA-) were guided to price in the Libor plus 25 bps area and were initially talked to print in the Libor plus 30 bps area.

J.P. Morgan Securities LLC was the bookrunner.

The banking and financial services holding company is based in New York.

Quebec sells notes

Quebec (Aa2/AA-/AA-) sold $500 million of 3.5% long 30-year notes on Thursday at a spread of 79 bps over Treasuries, according to a market source.

The notes are due Dec. 1, 2048.

National Bank Financial Inc., CIBC World Markets Inc. and Casgrain & Co. Ltd. were the bookrunners.

United Technologies eases

United Technologies’ 3.65% notes due Aug. 16, 2023 softened about 4 bps in secondary trading to 88 bps bid, according to a market source on Thursday.

The company sold $2.25 billion of the five-year notes on Aug. 13 at a 90 bps over Treasuries spread.

United Technologies’ 4.125% notes due Nov. 16, 2028 also eased about 3 bps to 119 bps bid.

The company priced $3 billion of the 10-year notes in the Aug. 13 offering at a spread of 125 bps over Treasuries.

United Technologies is a Hartford, Conn.-based company that provides technology products and services to the building and aerospace industries.

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