Investment-grade supply mostly quiet; high-grade inflows decline; Volkswagen widens

By Cristal Cody

Tupelo, Miss., Nov. 15 – The high-grade primary market stayed mostly quiet on Thursday following DowDuPont Inc.’s $12.7 billion eight-part offering of senior notes in the previous session.

No corporate issuers came to market, while Nederlandse Waterschapsbank NV priced $1 billion offering of three-year notes tighter than talk in SSA supply.

The Federal Home Loan Bank System also announced in the morning that it priced $1.25 billion of new 10-year Global notes.

Investment-grade issuers have priced more than $18 billion of bonds week to date.

About $25 billion to $30 billion of supply was expected for the short market week, according to syndicate sources.

For the week ended Nov. 14, Lipper US Fund Flows reported inflows of $755 million for corporate investment-grade funds, down from inflows of $1.85 billion in the previous week.

New issues were mixed in the secondary market with volatility crimping performance of bonds including DowDuPont’s notes, according to market sources.

In new issue trading, Volkswagen Group of America Finance LLC’s notes priced in an $8 billion seven-part Rule 144A and Regulation S deal on Nov. 7 have widened in the secondary market. The company’s 10-year notes were quoted more than 30 bps weaker than issuance on Thursday.

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