UBS, BPCE, Markel, UPS, Sterling push day’s issuance to $6.37 billion; Cisco, Apple firm

By Aleesia Forni and Cristal Cody

New York, March 29 – The pace of the investment-grade primary was again somewhat subdued on Tuesday.

Financial issuers UBS Group Funding (Jersey) Ltd. and BPCE SA were joined by Markel Corp., United Parcel Service, Inc. and Sterling National Bank.

Between them, around $6.37 billion of new issuance entered the primary during the session.

Investors poured into UBS Group’s $5 billion three-part new issue, with the final book topping $10 billion. Tranches of the sale firmed by around 20 basis points to 25 bps compared to initial price thoughts.

The day’s five deals push the week’s total supply to more than $11 billion, closing in on what was predicted to be around a $15 billion to $20 billion week.

Credit spreads opened about 1 bp softer and recovered ground following Yellen’s comments. The Markit CDX North American Investment Grade index closed mostly unchanged from Monday at a spread of 83 bps.

In the secondary market, Cisco Systems, Inc.’s 2.95% senior notes due 2026 tightened 3 bps over the day.

Apple Inc.’s 3.25% notes due 2026 improved about 1 bp during the session.

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