Investment-grade supply quiets on early close, strong volume; corporate inflows decline

By Cristal Cody

Tupelo, Miss., April 18 – Investment-grade activity stayed quiet over the short market session on Thursday with no reported issuance.

Thin action was expected with desks lightly staffed ahead of the Good Friday holiday.

The bond markets closed early at 2 p.m. ET and will reopen on Monday.

Corporate issuers priced about $19 billion of investment-grade bonds over the week, compared to syndicate forecasts of about $10 billion to $15 billion of supply.

Deal volume this week was led by bank and financial supply, including Bank of America Corp.’s $4.5 billion two-part sale of notes on Wednesday, Citigroup Inc.’s $2.75 billion of six-year notes on Tuesday and JPMorgan Chase & Co.’s $1.5 billion reopening of 3.964% senior fixed-to-floating rate notes due Jan. 15, 2048 on Tuesday.

In addition, Walmart Inc. priced a $4 billion three-part deal on Tuesday.

Lipper US Fund Flows on Thursday reported corporate investment-grade fund inflows of $2.31 billion for the week ended Wednesday, compared to $3.47 billion in the previous week and $2.9 billion in the week prior to that.

New issues have traded better in the secondary market, but bonds were mostly unchanged on Thursday, sources said.

Citigroup’s new 3.352% senior notes due April 24, 2025 traded flat on the day.

Walmart’s 3.25% notes due July 8, 2029 headed out unchanged from Wednesday.

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