IADB sells floaters; week’s supply tops $36 billion; new Charter bonds tighter in secondary

By Aleesia Forni

Virginia Beach, July 10 – Inter-American Development Bank priced an offering of floating-rate notes, ending a volatile week on a strong note on Friday.

The session’s tone turned positive after Greece submitted a reform proposal in order to avoid financial collapse.

More than $36 billion of new issuance hit the primary this week, due largely to Charter Communications Inc.’s $15.5 billion acquisition financing.

The busy week follows what had been a drought for the investment-grade primary, which had been void of any new issues since June 26.

Meantime, Lipper reported $1.09 billion of inflows into corporate investment-grade funds for the week ended July 8, pushing the year-to-date total to $29.9 billion of inflows.

This figure follows the previous week’s $655 million of outflows.

Looking forward, sources are expecting the market’s momentum to carry into the week ahead, with $25 billion to $30 billion of supply forecasted.

In the secondary, credit spreads reversed the week’s trend to close the session tighter.

The Markit CDX North American Investment Grade series 23 index firmed 4 basis points to a spread of 68 bps.

Tranches of Charter’s megadeal were trading better in the aftermarket.

Bank and financial paper, meanwhile, was mostly unchanged on the day.

Bank of America Corp.’s 4% notes firmed 1 bp, while Morgan Stanley’s 3.875% notes were 4 bps tighter.

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