Midday Commentary: 'Avalanche' of new issues continues; Novartis two-tranche deal tightens

By Aleesia Forni

Columbus, Ohio, Sept. 19 - The investment-grade primary market is "on fire" with $13.6 billion of corporate new issues priced on Tuesday.

This brings September's total issuance to $92 billion, one trader commented, up 45% from the same time period last year.

And the "avalanche" of deals will not be halted on Wednesday.

"[There is] a blur of new issuance," another trader said of the day's activity at midday.

The secondary market saw Novartis Capital Corp.'s new two-part deal tighten 6 basis points to 9 bps on Wednesday, while ING Bank NV's $1.25 billion three-year notes widened 10 bps.

Novartis firms

The $1.5 billion 10-year notes from Novartis traded at 62 bps bid, 60 bps offered at midday.

The notes priced at a spread of Treasuries plus 68 bps.

The $500 million of 30-year bonds traded at 71 bps bid, 70 bps offered after pricing at Treasuries plus 80 bps

The issuer is a holding company for pharmaceuticals and health care subsidiaries and is based in New York City.

ING widens

ING Bank's $1.25 billion of 2% three-year notes were quoted at 185 bps bid, 175 bps offered on Wednesday.

The notes sold at a spread of Treasuries plus 175 bps.

The financial services company is based in Amsterdam.

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