NextEra offers bonds; Swiss Re eyes deal; short-term inflows drop

By Cristal Cody

Tupelo, Miss., March 22 – High-grade primary market action slowed on Friday with one deal marketed from NextEra Energy Capital Holdings Inc.

Investment-grade corporate issuers priced more than $18 billion of bonds over the week, compared to market forecasts of about $20 billion to $25 billion of issuance.

Coming up, Swiss Re Finance (Luxembourg) SA plans to hold a roadshow and fixed income investor calls for a dollar-denominated offering of 30-year notes.

The Markit CDX North American Investment Grade 32 index softened about 3 basis points on Friday to end at a spread of 67 bps.

Inflows for the overall high-grade space, including corporate bonds, Treasuries, agencies and mortgages, moderated to $3.78 billion for the week ended March 20 from $5.1 billion in the previous week, according to a BofA Merrill Lynch research note released on Friday.

“The decline was completely due to short-term high grade,” BofA Merrill Lynch credit strategist Yuri Seliger said in the note.

Short-term high-grade inflows fell to $840 million from $2.36 billion in the prior week.

Meanwhile, excluding short-term net buying rose to $2.94 billion for the past week from $2.47 billion a week earlier.

Inflows to high-grade funds declined to $2.16 billion for the week ended Wednesday from $2.58 billion in the prior week, according to the report.

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