Primary quiet; around $25 billion of supply expected in week ahead; secondary trades thin

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 2 – The investment-grade bond market was “very quiet” to open the new year on Friday.

Desks were thinly staffed during the session, and the primary market was empty of any new deals during the first trading day of 2015.

This follows the closing of a record-breaking 2014, which saw more than $1.1 trillion of paper come to market.

Looking ahead, sources are calling for around $25 billion of supply to price during the first full week of the new month.

High-grade secondary bond trading activity stayed light on Friday, sources said.

“Didn’t do any trades,” an investment-grade corporate bond trader said. “One Treasury trade and that was it. Almost all the sales people are out. It’s been a really, really light day.”

Trace volume as the session closed was a low $1.5 billion for the day.

“Very light flow,” a trader said. “There’s lots of people out, and I saw a lot of shops closing up a couple of hours ago. It’s slim pickings out there.”

Morgan Stanley & Co. Inc.’s 3.875% notes due 2024 saw some activity early in the day, a trader said.

Apple Inc.’s 3.45% notes due 2024 were flat to slightly better, according to a trader.

Little activity was seen in Amazon.com, Inc.’s bonds (Baa1/AA-/) over the session, according to a trader.

Morgan Stanley active

Morgan Stanley’s 3.875% notes due 2024 (Baa2/A-/A-) traded early Friday at 132 bps offered, a trader said.

Morgan Stanley sold $3 billion of the notes at a spread of Treasuries plus 130 bps on April 23, 2014.

The financial services company is based in New York City.

Apple stable

Apple’s 3.45% notes due 2024 (Aa1/AA+/) were quoted on Friday at 71 bps bid, about 5 bps better from trading before Christmas, according to a trader.

Apple sold $2.5 billion of the notes at Treasuries plus 77 bps on April 29, 2014.

The computer and mobile communications device company is based in Cupertino, Calif.

Amazon long bonds trade

Amazon.com’s 3.8% senior notes due 2024 were not active in secondary action over the day, while the company’s 4.95% notes due 2044 saw one trade at a 193.4 bps spread, a trader said.

The long bonds were quoted wider at 198 bps offered in the Christmas Eve session.

Amazon.com sold $1.5 billion of the 4.95% notes due 2044 at a spread of Treasuries plus 205 bps on Dec. 2.

The online retailer is based in Seattle.

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