Investment-grade primary wraps $47 billion week; funds see first inflows in seven weeks

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 11 – The investment-grade primary market was empty of new issuance on Friday, giving the market a breather following the more than $47 billion of paper priced during the shortened week.

Issuers raced to the primary during the three active sessions this week to price deals ahead of next week’s Federal Reserve policy meeting and a potential rake hike.

Also this week, Lipper reported the first inflows seen for corporate investment-grade bond funds in seven weeks.

For the week ended Sept. 9, $416 million flowed into the funds, following last week’s $2.27 billion of outflows, pushing the year-to-date total to $21.32 billion of inflows.

Sources expect primary activity to slow in the week ahead, with around $25 billion to $30 billion of supply predicted.

Molson Coors Capital Finance ULC (Baa2/BBB+/DBRS: BBB) priced a rare Canadian dollar-denominated bond deal on Friday, according to market sources.

BMO Nesbitt Burns Inc. was a bookrunner.

Molson Coors Capital Finance is a Halifax, N.S.-based financing arm of the Denver-based Molson Coors Brewing Co.

Final pricing details were not available by press time.

In secondary trading on Friday, Goldman Sachs Group Inc.’s new 2.75% senior notes due 2020 traded about 3 bps tighter than where the paper priced earlier in the week.

Home Depot Inc.’s new 3.35% senior notes due 2025 were mostly unchanged over the session but remain better than where the bonds came on Tuesday.

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