Investment-grade primary empty during brutal session; AT&T, Apple weak; Oracle steady

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 24 – The investment-grade primary market was silent during a brutal session for the broader market.

U.S. stocks plunged on Monday amid a global sell-off on fears of slowing economic growth in China.

No new issues priced during the rollercoaster session, beginning what was already predicted to be a quiet week for the market.

Meantime, Deutsche Bank AG gave details of a recently priced $75 million add-on to its floating-rate notes due 2020.

Sources predict the remainder of the week to be empty of new issuance ahead of what is expected to be a hefty month of supply for September.

Investment-grade credit spreads continued to weaken on Monday.

The Markit CDX North American Investment Grade index opened the session wider at a spread of 86 basis points and headed out weaker at 88 bps. The index closed on Friday 2 bps softer at a spread of 83 bps.

In the secondary market, AT&T Inc.’s bonds (/BBB+/A-) remain weak.

Apple Inc.’s bonds (Aa1/AA+) continue to trade wider.

Oracle Corp.’s senior notes (A1/AA-/A+) were mostly unchanged over the day.

Deutsche Bank gave details of a $75 million add-on to its existing floating-rate notes due Aug. 20, 2020 in a 424B2 filed with the Securities and Exchange Commission.

The notes priced on Aug. 20 at par to yield Libor plus 131 bps.

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