Intel, Synovus bonds print tight, trade better; high-grade supply eyed ahead of CPI

By Cristal Cody

Tupelo, Miss., Feb. 10 – Investment-grade corporate issuers priced more than $33 billion of bonds over the week with most of the issues printing better than talk and trading tighter in the secondary market.

Deal volume was led by Intel Corp.’s $11 billion seven-tranche offering of notes (A2/A/A-) on Tuesday, and those bonds were seen among the strongest in the secondary market, sources said.

Intel’s notes had already exceeded expectations at pricing with the deal coming in 20 basis points to 25 bps better than initial talk.

In the secondary market, the paper broke about 10 bps to nearly 20 bps tighter, a source said.

Intel’s $2.25 billion tranche of 5.2% 10-year notes, talked to print in the 175 bps area, priced at a spread of 155 bps over Treasuries.

The issue due in 2033 was seen trading at 142 bps offered, a source said.

Intel’s deal is the largest so far to price in the high-grade bond market in 2023.

Another issuer over the week also saw strong primary and secondary performance, sources said.

Synovus Bank upsized its three-year senior bank notes offering on Wednesday to $500 million from $400 million.

The notes due 2028 (BBB/BBB) priced 30 bps tighter than initial talk at the Treasuries plus 215 bps area.

Synovus Bank placed the issue with a 5.625% coupon and a spread of Treasuries plus 185 bps, on the tight side of guidance in the 190 bps area, plus or minus 5 bps, a source said.

By the time the deal broke in the secondary market, the issue was trading 15 bps tighter at 170 bps offered, a source said.

Looking to the week ahead, high-grade issuers are expected to hit the primary market early on Monday ahead of the release of January inflation data, according to market sources.

The Labor Department will report January Consumer Price Index data on Tuesday.

About $30 billion of bonds are forecast to print over the upcoming week, according to market sources.

Supply this week outpaced the $25 billion to $30 billion of volume initially expected.

Deal issuance has been strong across financial markets so far in 2023.

U.S. and Canada corporate equity and debt Cusip requests alone rose to 2,834 in January, up from 2,111 in December and higher than the 2,321 requests in January 2022, according to a report from Cusip Global Services, part of the American Bankers Association.

“North American corporate requests totaled 5,981 in January, which is up 13.3% on a monthly basis,” the report said. “On a year-over-year basis, North American corporate requests closed out January up 30.5% over January 2022 totals.”

Inflows decline

Meanwhile, inflows in the high-grade space cooled over the week.

Inflows to corporate investment-grade funds and ETFs declined to $2.11 billion for the week ended Wednesday from $4.21 billion in the previous week, according to a BofA Securities Inc. research note.

High-grade fund inflows dropped to $920 million this week from a $5.15 billion inflow in the prior week.

ETF inflows were improved at $1.19 billion over the past week ended Wednesday following a $940 million outflow in the week prior, BofA said.

Corporate investment-grade funds had inflows of $2.84 billion for the week ended Wednesday, according to Refinitiv Lipper US Fund Flows.

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