High-grade issuers flood primary; Boeing, IBM, Anthem, Lam price; inflows edge higher

By Cristal Cody

Tupelo, Miss., April 30 – Boeing Co. led deal volume on Thursday and year to date with a $25 billion seven-tranche offering of senior notes.

Volume was heavy with numerous issuers in the high-grade primary market pricing about $40 billion of bonds over the day, a source said.

International Business Machines Corp. brought $4 billion of notes in four tranches to the market.

Anthem, Inc. sold $2.5 billion of notes in three tranches.

Lam Research Corp. priced $2 billion of notes in three tranches.

Other issuers included Mondelez International, Inc., Fifth Third Bancorp, Barclays plc, Norfolk Southern Corp., NVR Inc. and Reliance Standard Life Global Funding II.

Before Thursday’s session, deal volume had already totaled more than $46 billion, compared to about $40 billion to $50 billion of issuance expected by market sources for the week.

Inflows continued for a third week in investment-grade corporate funds, according to Refinitiv Lipper US Fund Flows on Thursday.

Inflows edged up to $2.25 billion for the past week ended Wednesday from $2.15 billion in the prior week.

The Markit CDX North American Investment Grade 33 index improved less than 1 basis point on the day to a spread of 86.75 bps.

In the secondary market, new issues have traded fairly tighter, a source said.

The $2 billion of senior notes (Baa3/BBB/BBB-) priced in three tranches from co-issuers NXP BV, NXP Funding LLC and NXP USA, Inc. in a Rule 144A and Regulation S offering on Wednesday tightened about 20 bps to 30 bps.

The company’s tranche of 3.4% green notes due May 1, 2030 firmed about 20 bps.

The issuers sold $1 billion of the 10-year notes at a spread of 280 bps over Treasuries versus initial talk in the Treasuries plus 335 bps area.

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