HSBC, Council of Europe, NorthWestern continue new-issue flood; First American tightens

By Aleesia Forni and Cristal Cody

Virginia Beach, Nov. 5 – The pace of the investment-grade primary bond market showed no signs of a slowdown on Wednesday, with roughly $8.7 billion of issuance priced during the session.

This follows the roughly $20 billion of supply seen during the first two trading days of the new month.

HSBC USA Inc. brought to market a $2.4 billion four-part senior notes offering.

Council of Europe Development Bank sold a $1 billion five-year offering, while Fannie Mae came to market with $3.5 billion of Benchmark Notes.

NorthWestern Corp. sold $450 million of 30-year first mortgage notes and Leggett & Platt Inc. priced $300 million of 10-year notes.

First American Financial Corp. sold a $300 million offering of bonds.

The session also saw Cytec Industries Inc. come to the primary with a $250 million issue of long five-year bonds.

Associated Banc-Corp was also in the market on Wednesday with a $500 million two-part note sale, though details were unavailable at press time.

Wednesday’s primary activity pushed the week’s total supply to nearly $29 billion of new issuance, on pace to exceed expectations of a $30 billion week.

In the secondary market, First American’s 4.6% notes due 2024 tightened more than 10 basis points in aftermarket trading, a trader said.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 65 bps.

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