Primary activity likely done for 2015; Charter softens; Marathon Oil, Walgreens stable

By Aleesia Forni and Cristal Cody

New York, Dec. 21 – Syndicate desks were thinly staffed to open the holiday-shortened week, a market source said Monday, with little activity to speak of in the investment-grade bond space.

“Nothing happening,” the source said of the day’s events, marking the seventh-straight trading day that saw no new deals enter the high-grade primary.

The late-year slowdown set in slightly earlier this year due in part to the Federal Open Market Committee’s two-day policy meeting and ultimate rate hike last week.

This, coupled with volatile market conditions and tumbling oil prices, kept a lid on issuance during the latter half of December.

Roughly $58 billion of new issuance has entered the investment-grade primary market during the final month of the calendar year.

No new deals are expected to price this week.

The Canadian high-grade primary market is likely finished for the year, a source said on Monday.

The Markit CDX North American Investment Grade 25 index closed the day unchanged to modestly tighter at a spread of 95 bps.

Investment-grade bonds were mostly flat to softer in secondary trading.

Charter Communications Inc.’s 4.908% notes due 2025 traded 5 bps weaker.

Marathon Oil Corp.’s 3.85% senior notes due 2025 headed out mostly unchanged.

Walgreens Boots Alliance Inc.’s 3.8% senior notes due 2024 were flat but quoted more than 10 bps weaker since the company’s deal to acquire Rite Aid Corp. was announced in October.

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