High-grade corporate issuers quiet; CPPIB prices $1 billion; Zions mulls subordinated issue

By Cristal Cody

Tupelo, Miss., Oct. 22 – Investment-grade corporate bond supply quieted on Tuesday, while one reported issuer in the sovereign, supranational and agency market priced a deal during the session.

CPPIB Capital Inc. sold $1 billion of 10-year notes on top of talk.

On Monday, corporate issuers priced $3 billion of notes. SSA supply was quiet on Monday.

Syndicate sources had expected volume to be stronger this week with about $15 billion to $20 billion of supply anticipated.

Deal volume was light in the previous holiday-shortened week with the investment-grade market posting more than $11 billion of corporate issuance and $5 billion of SSA supply.

The Markit CDX North American Investment Grade 33 index Tuesdays about 1 basis point softer at a spread of 55 bps.

Coming up on Wednesday, Zions Bancorporation NA plans to hold fixed income investor calls for a possible bond offering.

In the secondary market, bonds in the telecommunications sector were mixed but mostly softer.

AT&T Inc.’s 4.35% notes due March 1, 2029 eased about 5 bps during the session.

Verizon Communications Inc.’s 3.875% green senior notes due Feb. 8, 2029 widened about 6 bps.

CPPIB sells 10-year notes

CPPIB Capital (Aaa/AAA/AAA) priced $1 billion of 2% 10-year notes on Tuesday at mid-swaps plus 38 bps, or a spread of Treasuries plus 31 bps, according to a market source.

Price guidance was in the mid-swaps plus 38 bps area, plus or minus 1 bp.

BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and RBC Capital Markets, LLC were the lead managers of the Rule 144A and Regulation S offering.

The notes are guaranteed by the Canada Pension Plan Investment Board.

The investment management arm of the Canada Pension Plan Investment Board is based in Toronto.

Zions eyes primary

Zions Bancorporation (Baa1/BBB+/BBB) plans to hold fixed income investor calls on Wednesday for a possible offering of subordinated notes, according to a market source.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.

Zions Bancorporation is a bank holding company based in Salt Lake City.

AT&T softens

AT&T’s 4.35% notes due March 1, 2029 eased about 5 bps in secondary trading on Tuesday to head out at 139 bps bid, a market source said.

The notes were mostly unchanged on Friday in the 133 bps bid area.

AT&T sold $3 billion of the bonds on Feb. 13 at a spread of Treasuries plus 170 bps.

The telecommunications company is based in Dallas.

Verizon widens

Verizon Communications’ 3.875% green senior notes due Feb. 8, 2029 widened about 6 bps to 99 bps bid in the secondary market on Tuesday, a source said.

The notes traded on Friday about 1 bp tighter at 99 bps bid.

Verizon sold $1 billion of the notes (Baa1/BBB+/A-) on Feb. 5 at a spread of Treasuries plus 120 bps.

Verizon is a telecommunications company based in New York City.

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