High-grade market quiets ahead of strong volume eyed; new bonds firm; CVS, McDonald’s improve

By Cristal Cody

Tupelo, Miss., Aug. 9 – The investment-grade bond market quieted over Friday’s session following heavier-than-expected supply this week.

High-grade issuers priced more than $36 billion of bonds, compared to market forecasts of about $25 billion to $30 billion of issuance for the week.

Deal volume was led by Occidental Petroleum Corp.’s $13 billion 10-tranche offering of senior notes on Tuesday, Global Payments Inc.’s $3 billion three-part offering of senior notes on Wednesday and CVS Health Corp.’s $3.5 billion three-tranche sale of senior notes on Thursday.

About $25 billion to $30 billion of new issuance is forecast for next week

In the secondary market, new issues priced this week mostly tightened.

CVS Health Corp.’s $3.5 billion three-part offering of fixed-rate senior notes (Baa2/BBB/) priced on Thursday firmed 5 bps.

McDonald’s Corp.’s $2 billion of senior medium-term notes (Baa1/BBB+/) that came in two tranches on Wednesday firmed about 4 bps to 8 bps in the secondary market.

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