Primary action slows; Macquarie notes tighten; AT&T slightly better in trade

By Cristal Cody

Tupelo, Miss., Nov. 26 - Primary activity in the U.S. investment-grade market quieted on Tuesday, while Manufacturers Life Insurance Co. and Integrated Team Solutions PCH Partnership tapped the Canadian bond market, according to informed sources.

"It's very quiet with the holidays and whatnot," a source said.

The bond markets will be closed on Thursday for the Thanksgiving Day holiday and will close early on Friday.

U.S. issuers came out on Monday with several deals, including a $1 billion offering of 3% five-year notes from Macquarie Group Ltd., sources said.

The Australian bank priced the notes due 2018 with a spread of 175 basis points plus Treasuries.

In the secondary market on Tuesday, the notes tightened along with other paper, according to traders.

AT&T Inc.'s 2.35% notes due 2018 sold a week ago traded about 1 bp tighter with the telecom sector mostly unchanged on the day, a trader said.

"It's a slow day," the trader said.

Macquarie sells $1 billion

Macquarie Group raised $1 billion in an offering of 3% five-year notes (A3/BBB/A-) to yield a spread of 175 bps plus Treasuries, according to an informed source on Tuesday.

The Rule 144A and Regulation S offering priced on the tight end of guidance of Treasuries plus 180 bps, plus or minus 5 bps.

Additional pricing terms were not available by press time.

In the secondary market, the notes firmed to 165 bps bid, 161 bps offered, tighter than where they headed out on Monday at 173 bps bid, 168 bps offered, according to traders.

The global investment bank and financial services company is based in Sydney, Australia.

AT&T better

In the secondary market on Tuesday, AT&T's 2.35% notes due 2018 traded going out at 99 bps bid, 97 bps offered, a trader said.

AT&T sold $1.6 billion of the five-year notes at 100 bps plus Treasuries on Nov. 20.

The telecommunications company is based in Dallas.

Bank/brokerage CDS costs flat

Investment-grade bank and brokerage CDS prices were mostly unchanged, according to a market source.

Bank of America Corp.'s CDS costs eased 1 bp to 83 bps bid, 86 bps offered. Citigroup Inc.'s CDS costs were flat at 79 bps bid, 82 bps offered. JPMorgan Chase & Co.'s CDS costs ended unchanged at 71 bps bid, 74 bps offered. Wells Fargo & Co.'s CDS costs were flat at 45 bps bid, 49 bps offered.

Merrill Lynch's CDS costs closed unchanged at 83 bps bid, 88 bps offered. Morgan Stanley's CDS costs firmed 1 bp to 95 bps bid, 99 bps offered. Goldman Sachs Group, Inc.'s CDS costs were unchanged at 98 bps bid, 102 bps offered.

Paul Deckelman contributed to this review.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.