High-grade supply heavy; HSBC, GM, John Deere, Equinor price; Cigna, Carlyle eye deals

By Cristal Cody

Tupelo, Miss., Sept. 5 – Investment-grade issuers posted a strong showing over Wednesday’s session.

Supply included $5.25 billion of senior notes in three tranches from HSBC Holdings plc.

General Motors Co. also priced $2.1 billion of senior notes in three tranches.

Other issuers during the session included John Deere Capital Corp., Equinor ASA, Willis North America Inc., Public Service Electric and Gas Co., AEP Transmission Co., Northern States Power Co.

Also, the European Investment Bank priced $3 billion of three-year global notes.

More than $12 billion of high-grade bonds were sold on Tuesday following the long holiday weekend.

Market sources expect about $45 billion to $55 billion of deal volume for the week.

The Markit CDX North American Investment Grade 30 index firmed about 1 basis point to a spread of 60 bps.

In other market activity, Cigna Corp. (Baa1/A/BBB-) began holding fixed-income investor calls on Tuesday for a benchmark-sized multiple-tranche dollar-denominated Rule 144A-eligible bond offering, a source said.

Also on Wednesday, the Carlyle Group (/BBB+/BBB+) began a two-day session of fixed income investor calls for a Rule 144A- and Regulation S-eligible offering of senior notes, according to a market source.

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