High-grade quiets after financial supply; deal pickup eyed; bank paper firms; Charter up

By Cristal Cody

Tupelo, Miss., Oct. 18 – The high-grade bond market stayed quiet on Friday following more than $11 billion of corporate issuance over the week.

About $10 billion to $15 billion of supply was anticipated by market sources for the Columbus Day holiday-shortened week.

Volume has been led this week by bank supply from issuers including Bank of America Corp., Bank of New York Mellon Corp., PNC Bank, NA and Bank of Montreal.

In addition this week, $5 billion of high-grade sovereign, supranational and agency bonds were priced.

Looking ahead to the upcoming week, volume may pick up with syndicate sources forecasting about $15 billion to $20 billion of supply.

In the secondary market, bank paper was mostly tighter.

Bank of America Corp.’s $4 billion of fixed-to-floating rate senior notes (A2/A-/A+) that priced in two tranches on Thursday traded about 1 bp to 4 bps better than issuance.

Bank of New York Mellon’s $750 million of 2.1% senior notes due Oct. 24, 2024 that came in the previous session firmed about 2 bps.

In other new issue trading, Charter Communications, Inc.’s $1.5 billion of 4.8% senior secured notes due March 1, 2050 that priced at the start of the week tightened about 8 bps on the bid side.

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