High-grade bond funds see $5 billion outflows; Charter firms; Newell Rubbermaid flat

By Aleesia Forni and Cristal Cody

New York, Dec. 18 – Credit spreads were mostly stable on Friday following news that investment-grade bond funds saw their largest outflows of the year this week.

More than $5.1 billion left corporate investment-grade funds for the week ended Dec. 16.

This figure pulls the year-to-date total to roughly $6.7 billion of inflows.

Friday also ended a tumultuous week for the high-grade market that saw no new deals enter the market as the Federal Reserve hiked rates for the first time in nearly a decade and oil prices fell below $35 per barrel.

Another quiet week is predicted for the coming sessions ahead of the Christmas Day holiday, with no issuers expected to tap the high-grade market.

Investment-grade bonds were mixed over the afternoon in the secondary market.

Charter Communications Inc.’s 4.908% notes due 2025 firmed 2 basis points.

Oracle Corp.’s 2.95% senior notes due 2025 were unchanged.

AT&T Inc.’s notes (/BBB+/A-) traded 5 bps wider on Friday.

Newell Rubbermaid Inc.’s 3.9% senior notes due 2025 were flat but ended the week better.

The Markit CDX North American Investment Grade 25 index closed the day 2 bps weaker at a spread of 95 bps.

Charter Communications firms

Charter Communications’ 4.908% notes due 2025 traded 2 bps tighter at 266 bps bid, a market source said.

The company sold $4.5 billion of the notes (Ba1/BBB-) on July 9 at a spread of Treasuries plus 260 bps.

The provider of cable, internet and phone services is based in Stamford, Conn.

Oracle notes stable

Oracle’s 2.95% notes due 2025 traded flat on Friday at 104 bps bid, according to a market source.

Oracle sold $2.5 billion of the bonds (A1/AA-/A+) on April 28, 2015 at 100 bps over Treasuries.

The computer software and technology company is based in Redwood City, Calif.

AT&T bonds ease

AT&T’s 3.4% notes due 2025 eased 5 bps in secondary trading to 170 bps bid, a market source said.

The company sold $5 billion of the notes on April 23, 2015 at 150 bps over Treasuries.

The telecommunications company is based in Dallas.

Newell Rubbermaid unchanged

Newell Rubbermaid’s 3.9% notes due 2025 were unchanged but closing the week better at 93.74 to yield 4.7%, according to a market source.

The notes traded 7 points weaker on Monday at 89.12 to yield 5.331% after the company announced a deal to acquire Jarden Corp. for $15 billion.

Newell Rubbermaid sold $300 million of the notes (Baa3/BBB-/BBB+) on Oct. 14 at 99.686 to yield 3.938%.

The consumer and commercial products maker is based in Atlanta.

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