Issuance tops $20 billion; week ahead similar; Assured Guaranty notes tighten; Verizon active

By Cristal Cody and Aleesia Forni

Virginia Beach, June 20 – The week’s issuance reached the high end of expectations, although Friday’s session saw no new deals come to the primary.

Roughly $20 billion of new issuance priced this week, bringing the month’s total to more than $75 billion and already topping expectations of a $70 billion month.

Demand for new deals remains solid even with the rapid pace of issuance, sources said.

For the week ahead, around $20 billion of investment-grade paper is expected to price for the final full week of June.

Details from Thursday’s deals from Intesa Sanpaolo SpA and Societe Generale SA emerged Friday.

Intesa’s deal was more than four times oversubscribed, while Societe Generale attracted an orderbook of more than $13 billion.

Bonds headed out marginally weaker in late afternoon trading on Friday, according to market sources.

The Markit CDX North American Investment Grade series 22 index was seen less than 1 basis point wider at a spread of 56 bps.

In the secondary market, Assured Guaranty US Holdings Inc.’s 5% senior notes due 2024 “came in nicely,” a trader said.

Verizon Communications Inc.’s 4.15% senior notes due 2024 are among the most active issues, a trader said.

Target Corp.’s new senior notes (A2/A/A-) headed out on Friday slightly better, a trader said.

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