Primary pauses to close week; active week for issuance ahead; Marathon Oil mostly flat

By Aleesia Forni and Cristal Cody

Virginia Beach, June 5 – Primary activity quieted on Friday to close out June’s opening week, while the market focused on a strong May jobs report.

No new deals priced during the session, capping off a week that saw more than $23 billion of new issuance, just short of the $25 billion predicted for the week.

Meantime, Lipper reported $231 million of inflows into corporate high-grade funds for the week ended May 27, bringing the year-to-date total to roughly $29.1 billion of inflows.

Sources are calling for a more active primary week ahead, with around $25 billion to $30 billion of supply predicted.

Investment-grade bonds were mixed in secondary trading on Friday, while credit spreads remained soft, market sources said.

Marathon Oil Corp.’s senior notes (Baa1/BBB/) priced on Monday traded flat to 1 basis point better.

Barclays plc’s 2.875% senior notes due 2020 were unchanged.

Time Warner Inc.’s bonds (Baa2/BBB) headed out 2 bps to 3 bps wider.

Home Depot Inc.’s bonds (A2/A/A) traded 2 bps better.

Oracle Corp.’s senior notes (A1/AA-/A+) were flat to 3 bps tighter in the secondary market.

AT&T Inc.’s bonds (/BBB+/A-) traded 2 bps better over the day.

Verizon Communications Inc.’s bonds were mostly wider. Verizon announced in May it will acquire AOL Inc. for $4.4 billion.

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