Record month closes on subdued note; Union Electric, Principal Life price; Apple firms

By Aleesia Forni and Cristal Cody

Virginia Beach, March 31 – The lull in the investment-grade primary continued Tuesday, with only Union Electric Co. and Principal Life Global Funding III pricing new issues.

The issuers raised a combined $1.25 billion of supply, closing out a frenzied month of issuance on a quieter note.

More than $163 billion priced during the month of March, the busiest month on record, according to Prospect News data.

Union Electric, doing business as Ameren Missouri Co., sold a $250 million senior secured note due 2045 on Tuesday.

Principal Life’s upsized $500 million offering garnered an order book that was more than two times oversubscribed.

Sources are calling for another muted session on Wednesday to open what is predicted to be a quieter month of April.

Bonds traded mostly better over the session, with bank and financial paper stronger, investment-grade market sources said.

Goldman Sachs Group Inc.’s 3.5% senior notes due 2025 traded about 10 basis points tighter on the day.

JPMorgan Chase & Co.’s 3.125% notes due 2025 tightened 7 bps in the secondary market.

Bank of America Corp.’s 4% notes due 2025 firmed 3 bps.

Apple Inc.’s 2.5% notes due 2025 traded 2 bps better.

Coach Inc.’s 4.25% senior notes due 2025 were quoted 2 bps weaker in secondary trading.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

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