High-grade supply quiet after strong week; Comcast flat; Berkshire eases; Toyota improves

By Cristal Cody

Eureka Springs, Ark., Jan. 6 – Investment-grade issuers took a break on Friday after pricing more than $53 billion of corporate bonds in three sessions over the week in a strong start to 2017.

About $25 billion to $35 billion of high-grade corporate supply is forecast for the week ahead, a source said.

New bonds were mixed in secondary trading on Friday.

Comcast Corp.’s 3% notes due 2024 traded on Friday at 85 bps bid, 83 bps offered, and its 3.3% notes due 2027 were quoted at 95 bps bid, 93.5 bps offered.

The company sold $1.25 billion of the 3% notes on Thursday at a spread of 85 bps over Treasuries and $1.25 billion of the 3.3% notes at a spread of Treasuries plus 95 bps.

Berkshire Hathaway Finance Corp.’s floating-rate senior notes due 2020 softened to 33 bps bid, 30 bps offered.

The company priced $350 million of the notes on Thursday at par to yield Libor plus 32 bps.

Toyota Motor Credit Corp.’s 3.2% senior notes due 2027 were quoted on Friday afternoon at 78 bps bid, 75 bps offered.

Toyota Motor Credit sold $750 million of the 10-year notes (Aa3/AA-/) at 80 bps over Treasuries on Wednesday as part of a $3.5 billion five-tranche deal.

The Markit CDX North American Investment Grade index closed mostly flat at a spread of 64 bps.

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