Lighter high-grade deal volume forecast for week ahead; Viacom, Kroger mixed; HSBC softens

By Cristal Cody

Eureka Springs, Ark., Sept. 30 – Investment-grade bond issuance stayed quiet on Friday, and deal volume in the week ahead is expected to slow to the $15 billion to $20 billion area, according to market sources.

Less than $100 billion of issuance is expected in October following heavy deal volume in August and September.

New investment-grade bonds priced over the week were mixed in the secondary market on Friday.

Viacom Inc.’s $1.3 billion of senior notes (Baa3/BBB-/BBB) priced on Thursday were mixed with the 10-year notes improving.

HSBC Holdings plc’s 2.65% notes due 2022 priced on Wednesday traded about 3 basis points softer.

Kroger Co.’s senior notes (Baa1/BBB/BBB) were mixed in secondary trading.

The Markit CDX North American Investment Grade index ended Friday about 3 bps tighter at a spread of 75 bps.

Viacom mixed

Viacom’s 2.25% notes due Feb. 4, 2022 traded weaker on Friday at 122 bps bid, 120 bps offered, according to a market source.

Viacom sold $400 million of the notes on Thursday at Treasuries plus 120 bps.

The company’s 3.45% notes due 2026 improved to 189 bps bid, 186 bps offered in the secondary market.

Viacom priced $900 million of the notes on Thursday at Treasuries plus 195 bps.

Viacom is a New York City-based diversified media company with interests focused in cinema and cable television.

HSBC eases

HSBC Holdings’ 2.65% notes due 2022 softened in secondary trading to 157 bps bid, 155 bps offered on Friday, a market source said.

The company sold $2.5 billion of the notes (A1/A/AA-) on Wednesday at a spread of Treasuries plus 155 bps.

The banking and financial services group is based in London.

Kroger mixed

Kroger’s 2.65% notes due 2026 traded weaker at 112 bps bid, 110 bps offered on Friday afternoon, according to a market source.

Kroger sold $750 million of the notes on Sept. 26 at a spread of 110 bps over Treasuries.

The company’s 3.875% notes due 2046 improved in secondary trading to 152 bps bid, 149 bps offered.

Kroger priced $500 million of the bonds on Sept. 26 at Treasuries plus 155 bps.

The grocery retailer is based in Cincinnati.

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