Markel, Northwestern Mutual price; IG bond market said to see largest inflow since 2014

By Rebecca Melvin

New York, Sept. 13 – The investment-grade bond market went quiet Friday with two previously announced deals heard to have priced.

Markel Corp., a Glen Allen, Va.-based financial holding company, priced $800 million of senior notes in two parts on Thursday. The parts included a $300 million tranche of 3.35% 10-year notes at a Treasuries plus 158 basis points and a $500 million tranche of 4.15% 31-year notes that sold at a Treasuries plus 190 bps spread.

In addition, Northwestern Mutual Life Insurance Co. priced $600 million of 3.625% surplus notes due 2059 on Thursday.

Investment-grade bond issuance remained robust on Monday, following a record post-Labor Day week last week. But as predicted, primary activity waned as the week wore on and deal sizes for the most part were smaller.

But the IG corporate bond market remains robust overall, with the largest inflow this past week since 2014.

The inflows to U.S. investment grade funds and ETFs jumped to $6.94 billion for the week ending on Sept. 11. That was the third largest inflow on record going back to 2008 and the biggest since October 2014, according to a note from Bank of America Merrill Lynch.

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