Comcast brings $1.43 billion 4.05% notes; investment-grade funds see $1.1 billion inflows

By Sheri Kasprzak

New York, May 13 – It was another quiet session for investment-grade offerings on Friday, led by a $1.43 billion note deal from Comcast Corp.

The session’s other issuers were Wells Fargo & Co. with $150 million of five-year floating-rate notes that priced at par to yield Libor plus 90 basis points and CenterPoint Energy Houston Electric, LLC with $300 million of 1.85% five-year general mortgage bonds priced at 67 bps over Treasuries.

Meanwhile, high-grade funds saw their 10th consecutive week of inflows at $1.1 billion for the week ended May 11, according to Lipper Inc.

The amount was down from $2.1 billion of inflows the previous week, but it served as a stark contrast to the $1.91 billion of outflows recorded for high-yield funds in the latest week.

“This week’s outflow from the lower-rated asset class topped last week’s $1.8 billion of outflows and was the largest move out of high-yield funds since the week ending Jan. 20,” said Jody Lurie, corporate bond analyst with Janney Montgomery Scott LLC.

“The two consecutive weeks of outflows may be harbinger of the end of the relief rally that began in mid-February. ... At the current run-rate, both the number and amount of investment-grade issuance in May would best other months year-to-date, helped by a very active week.”

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