Primary quiet ahead of Thanksgiving holiday; Verizon, Goldman Sachs better in secondary

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 26 – The investment-grade bond market was quiet to close out the week on Wednesday ahead of the Thanksgiving holiday. The bond markets will be closed Thursday and close early Friday.

The primary market absorbed $10.5 billion of new issuance this week, in line with expectations for a $10 billion to $15 billion week and helping to close out a frenzied month in which more than $110 billion of new issuance priced.

Sources are calling for the momentum to carry into the week ahead, with around $25 billion to $30 billion of supply expected for the opening week of December and up to $60 billion of new issuance predicted for the month.

Despite Wednesday’s lull in the U.S. investment-grade bond market, two Canadian companies brought C$1.1 billion of issuance over the day, according to informed sources.

Metro Inc. sold C$600 million of senior notes, while Manufacturers Life Insurance Co. brought a C$500 million offering of debentures.

The U.S. secondary market saw light activity as traders digested a heavy round of economic data and desks thinned in front of the holiday, sources said.

Verizon Communications Inc.’s 3.5% notes due 2024 improved 1 basis point to 2 bps in secondary trading, according to a market source.

Goldman Sachs Group Inc.’s 2.625% notes due 2019 brought in January are ending the year stronger, a source said.

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