High-grade deal action slows; light supply forecast for rest of year; Vornado firms

By Cristal Cody

Tupelo, Miss., Dec. 15 – The investment-grade primary market stayed quiet on Friday with no reported bond issuance during the session.

Deal action is expected to slow considerably in the upcoming week, a source said.

Bond market participants expect issuance to top out at about $2 billion with most desks closing up for the year.

In other activity, Barclays Bank plc (A1/A/A) detailed a $200 million offering of 2.57% series A global medium-term notes due Dec. 18, 2020 (Baa3/BBB-/A-) that priced at par on Wednesday, according to a 424B2 filing with the Securities and Exchange Commission.

New bonds priced over the week mostly tightened in the secondary market.

Vornado Realty LP’s $450 million of 3.5% notes due Jan. 15, 2025 that were brought to the primary market on Tuesday traded about 7 basis points better.

Vornado Realty sold $450 million of the seven-year notes on Tuesday at a spread of Treasuries plus 125 bps.

Packaging Corp. of America’s $1 billion of fixed-rate senior notes (Baa2/BBB) that priced in two tranches on Monday firmed about 5 bps to 6 bps in secondary trading.

The Markit CDX North American Investment Grade 29 index tightened about 1 bp to close the day at a spread of 50.3 bps.

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