National Rural sells notes; Fairfax, International Development plan bonds; CVS tightens

By Cristal Cody

Tupelo, Miss., April 12 – National Rural Utilities Cooperative Finance Corp. tapped the high-grade bond market on Thursday with a $150 million offering of three-year fixed-rate notes.

The primary market otherwise was quiet with no other reported bond issuance, but several issues are in the deal pipeline.

Fairfax Financial Holdings Ltd. on Thursday marketed a Rule 144A and Regulation S sale of senior notes.

The International Development Association (Aaa/AAA/) intends to bring an inaugural bond offering to the primary market.

New issuance also is expected to follow roadshows being held by Syngenta AG and Ausgrid Finance Pty Ltd.

Supply has thinned to less than $7 billion of reported high-grade bond volume week to date. Syndicate sources forecasted about $10 billion to as much as $17 billion of issuance for the week.

In the secondary market on Thursday, CVS Health Corp.’s senior notes (Baa1/BBB+/) priced as part of a $40 billion nine-part deal in March to fund its merger with Aetna Inc. tightened. The notes are trading more than 20 basis points better than issuance.

General Mills, Inc.’s 4.2% senior notes due 2028 priced earlier in April were unchanged.

The Markit CDX North American Investment Grade 30 index closed the day about 1 bp tighter at a spread of 62 bps.

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