High-grade primary quiets; light supply for week ahead; Progressive flat; Conagra mixed

By Cristal Cody

Tupelo, Miss., Oct. 19 – The investment-grade primary market stayed quiet on Friday with no reported issuers.

Deal volume fell short of syndicate forecasts for the week as market tone soured and a focus on earnings results resumed, sources said.

More than $14 billion of investment-grade bonds were priced, compared to expectations of about $25 billion to $35 billion of new supply.

About $15 billion to $20 billion of high-grade issuance is forecast for the week ahead, according to market sources.

Elsewhere on Friday, Oglethorpe Power Corp. (Baa1//BBB+) wrapped a two-day round of fixed-income investor calls, a source said. Goldman Sachs & Co. LLC and MUFG were the arrangers.

New investment-grade bonds sold this week were mixed in the secondary market.

Progressive Corp.’s 4% senior notes due March 1, 2029 priced in the previous session were wrapped around issuance on Friday.

Conagra Brands, Inc.’s $7.3 billion of senior notes (Baa3/BBB/BBB-) brought to the primary market in seven tranches on Monday were mixed with the long-dated bonds weaker.

The Markit CDX North American Investment Grade 31 index ended the day mostly unchanged at a spread of 67 basis points.

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