Muted primary ends $51 billion week; JPMorgan stable; Bank of America, Morgan Stanley soft

By Aleesia Forni and Cristal Cody

Virginia Beach, March 13 – The high-grade primary market took a breather on Friday, with no new deals pricing during the session.

Roughly $51.47 billion of new investment-grade paper sold during another frenzied week for the market, pushing the total supply for March to $115 billion in only 10 trading days.

The preferred market did see some activity on Friday, with Citigroup Inc. launching an offering of $1,000-par series O fixed-to-floating-rate noncumulative preferreds.

Sources are expecting the week ahead to be less active amidst the Federal Reserve’s two-day policy meeting mid-week, with $25 billion to $30 billion of supply predicted.

Meanwhile, Lipper reported the lowest inflows of the year into corporate high-grade bond funds for the week ended March 11, which saw inflows of $571 million.

The total was down from last week’s inflows of $1.638 billion, bringing the year-to-date total inflows to $21.693 billion.

In the secondary market, JPMorgan Chase & Co.’s 3.125% notes due 2025 traded flat over the session.

Bank of America Corp.’s 4% notes due 2025 widened 5 basis points with the company’s paper softer overall following the results of the Federal Reserve’s stress tests earlier in the week.

Morgan Stanley & Co. Inc.’s 3.875% notes due 2024 widened 6 bps during the session.

Microsoft Corp.’s 2.7% notes due 2025 eased 1 bp.

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