High-grade supply quiet as credit spreads widen; Dow Chemical firms; JPMorgan eases

By Cristal Cody

Tupelo, Miss., Dec. 4 – High-grade corporate bond issuers stayed out of the primary market on Tuesday as credit spreads widened and optimism on Monday gave way to trade concerns.

The Markit CDX North American Investment Grade 31 index widened about 3 basis points to a spread of 78 bps.

Stocks slid after rallying on Monday with the Dow Jones industrial average down 800 points, or 3.1%, and the other indices off more than 3%.

The bond markets, along with stock markets and the U.S. government, will be closed on Wednesday as part of a national day of mourning for former U.S. president George H.W. Bush.

ING Groep NV (Baa1/A-/A+) was expected to price an offering of fixed-rate subordinated resettable notes due Dec. 12, 2033, but the deal was postponed, a source said.

In the secondary market, Dow Chemical Co.’s 4.8% senior notes due Nov. 30, 2028 that priced in a $2 billion three-tranche offering last week tightened about 4 bps.

Home Depot Inc.’s senior notes (A2/A) traded better than where the notes came as part of a $3.5 billion four-part offering a week ago.

JPMorgan Chase & Co.’s 4.452% fixed-to-floating rate notes due Dec. 5, 2029 that priced last week as part of a $5 billion two-tranche deal traded about 4 bps softer than issuance.

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