Morning Commentary: Total, Virginia Electric, Alexandria Real Estate, Sumitomo Mitsui on tap

By Cristal Cody

Tupelo, Miss., July 8 – The investment-grade primary market resumed action on Monday with several issuers offering bonds after no corporate deals came to the market in the previous week.

Total Capital International is on deck with four tranches of guaranteed fixed-rate notes.

Virginia Electric and Power Co. is offering new 10-year fixed-rate senior notes.

Alexandria Real Estate Equities, Inc. is marketing two tranches of fixed-rate senior notes.

Sumitomo Mitsui Financial Group, Inc. plans to sell new fixed-rate senior notes.

Investment-grade supply is expected to ramp up to about $15 billion to $20 billion or higher this week, according to syndicate sources.

Corporate issuers were quiet over the first week of July with the markets closed on Thursday for the Independence Day holiday.

A deal is being eyed in the near future from Panasonic Corp., which started a global roadshow on Friday in the U.S., Europe and Asia markets for a Rule 144A and Regulation S dollar-denominated note offering.

For the week ended July 3, inflows to U.S. investment-grade bond funds and ETFs jumped to $3.97 billion from $2.66 billion in the prior week, Yunyi Zhang, a credit strategist with BofA Merrill Lynch, said in a research note released on Monday.

The figure was led by a jump in high-grade fund inflows to $3.97 billion from $700 million in the previous week and partially offset by a decline in ETF inflows to $380 million from $1.96 billion a week earlier.

Short-term high-grade inflows rose to $3.97 billion from $2.66 billion, while excluding-short-term inflows increased to $3.05 billion from $2.46 billion a week earlier, Zhang said.

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