Ontario sells $2.5 billion; lighter holiday deal pace eyed; Morgan Stanley, Fox firm

By Cristal Cody

Tupelo, Miss., Jan. 18 – The Province of Ontario priced $2.5 billion of five-year global notes on Friday as the sole reported issuer in the investment-grade primary market.

The deal brings week-to-date corporate and sovereign, supranational and agency investment-grade bond volume to more than $36 billion. Corporate issuers priced more than $25 billion of notes over the week.

About $30 billion to $40 billion of corporate supply was expected by syndicate sources for the week.

Bank supply also is being eyed in the upcoming short market week, though overall deal volume is expected to be lighter with many companies still in earnings blackout periods. sources said.

Syndicate sources forecast about $20 billion to $25 billion of new issuance in the week ahead.

The U.S. financial markets will be closed on Monday for the Martin Luther King Day holiday.

In the secondary market, new issues priced this week have traded mostly stronger, according to market sources.

Morgan Stanley’s $3 billion of 4.431% global medium-term fixed-to-floating rate senior notes due Jan. 23, 2030 sold Thursday were quoted on Friday afternoon nearly 20 bps tighter.

Fox Corp.’s $6.8 billion five-part offering of notes that priced on Tuesday traded about 5 bps to as much as 25 bps tighter in the secondary market.

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