Week’s issuance tops $56 billion; pace to continue in week ahead; bank paper eases; AT&T flat

By Cristal Cody and Aleesia Forni

Virginia Beach, Sept. 5 – Investment-grade bonds saw a flurry of activity this week, with the primary market seeing more than $56 billion of new issuance.

The busy week followed a mostly quiet August, with only $47 billion priced during the month.

The pace of primary activity is expected to continue throughout the month of September, with sources expecting around $120 billion to $150 billion of new issuance.

“Should be mostly front-loaded,” one source said, though he added that the market should be “busy all month.”

For the week ahead, around $25 billion to $30 billion of supply is expected.

Meanwhile, Lipper reported inflows of $408 million into corporate investment-grade funds for the week ended Sept. 3, down from last week’s $922.3 million of inflows.

The year-to-date total of inflows now tops $52 billion.

Investment-grade credit spreads firmed over the day after spending most of the week unchanged, according to a market source.

The Markit CDX North American Investment Grade series 22 index narrowed 1 basis point to a spread of 56 bps.

Bank and financial paper was mostly softer in light trading, a source said.

Morgan Stanley’s paper traded 1 bp to 3 bps wider on the day, while JPMorgan Chase & Co.’s notes were mixed, the source said.

In other secondary trading, Apple Inc.’s 3.45% notes due 2024 eased 1 bp on Friday, according to a market source.

AT&T Inc.’s 3.9% notes due 2024 were unchanged on the day, a source said.

Morgan Stanley widens

Morgan Stanley’s 2.375% notes due 2019 (Baa2/A-/A) were quoted 3 bps weaker at 79 bps offered, a source said on Friday.

Morgan Stanley sold $2.5 billion of the notes at Treasuries plus 85 bps on July 17.

The financial services company is based in New York City.

JPMorgan eases

JPMorgan’s 3.625% senior notes due 2024 (A3/A/A+) eased 3 bps to 114 bps offered, according to a source.

JPMorgan sold $2 billion of the notes on May 6 at a spread of Treasuries plus 110 bps.

The financial services company is based in New York City.

Apple edges wider

Apple’s 3.45% notes due 2024 (Aa1/AA+/) eased 1 bp on Friday to 78 bps offered, a market source said.

The company sold $2.5 billion of the notes at Treasuries plus 77 bps on April 29.

The computer and mobile communications devices company is based in Cupertino, Calif.

AT&T stable

AT&T’s 3.9% notes due 2024 (A3/A-/A) headed out unchanged at 95 bps offered, a source said.

AT&T sold $1 billion of the 10-year notes on March 5 at Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

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