High-grade volume subsides after solid week; United Technologies firms; McDonald’s mixed

By Cristal Cody

Tupelo, Miss., Aug. 17 – Investment-grade issuers stayed to the sidelines on Friday following strong volume earlier in the week.

Week to date supply totals more than $29 billion. Market sources had expected about $25 billion to $30 billion of new issuance.

Primary action for the week was led by an $11 billion seven-tranche offering of notes from United Technologies Corp. on Monday, a $3 billion four-part bond deal from AstraZeneca plc on Tuesday and a $3.75 billion offering of floating-rate notes from AT&T Inc. on Thursday.

In the secondary market, new issues traded mostly better.

United Technologies’ senior notes (Baa1/BBB+) tightened about 3 basis points to 4 bps on the day.

McDonald’s Corp. senior medium-term notes (Baa1/BBB+/) priced in a $1.8 billion three-tranche deal on Monday traded flat to about 3 bps tighter during the session.

AstraZeneca’s 4% notes due Jan. 17, 2029 were unchanged on Friday but modestly better than issuance.

The Markit CDX North American Investment Grade 30 index ended the session about 1 bp better at a spread of 61 bps.

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