MUFG issues bonds; Hubbell, Aon, PG&E upsize deals; Hewlett-Packard tightens; AT&T firms

By Aleesia Forni and Cristal Cody

New York, Feb. 23 – The momentum in the investment-grade bond market continued on Tuesday, with another $10.45 billion of issuance hitting the primary.

This figure, coupled with the deluge of deals priced during the week’s opening session, pushes the week’s total issuance to more than $28.45 billion in only two sessions.

Mitsubishi UFJ Financial Group, Inc. sold the largest new issue of the day, $5 billion of notes in three parts, after wrapping up a roadshow earlier this month.

Elsewhere, Welltower Inc., Hubbell Inc., Aon plc and Pacific Gas & Electric Co. each entered the primary market with upsized new deals.

American International Group Inc., meantime, sold $1.5 billion five-year notes around 27.5 basis points inside initial price thoughts.

Canadian primary action remained quiet for a second session with first-quarter bank earnings reporting season kicking off.

“We could see some bank issuance after earnings are out of the way this week,” a source said.

High-grade credit spreads softened over the day.

The Markit CDX North American Investment Grade index closed 2 bps wider at a spread of 115 bps.

Hewlett-Packard Enterprise Co.’s bonds (Baa2/BBB/A-) tightened about 9 bps to 23 bps in the secondary market over the day.

AT&T Inc.’s 4.125% notes due 2026 firmed 3 bps to 5 bps on Tuesday.

Visa Inc.’s senior notes (A1/A+) traded flat to 2 bps better during the session.

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