High-grade supply thin; Alberta prices on top of talk; SOFR volume grows; Amazon eases

By Cristal Cody

Tupelo, Miss., Oct. 25 – High-grade corporate issuers stayed out of the primary market on Thursday as volatility continues to hamper supply and focus turned to earnings releases.

The Province of Alberta priced $2.25 billion of five-year global bonds on top of talk at a spread of mid-swaps plus 25 basis points.

Also on Thursday, Fannie Mae priced a $5 billion offering of floating-rate corporate notes in three tranches based on the Secured Overnight Financing Rate.

Royal Bank of Canada priced an upsized C$350 million, or 14 million shares, of series BO non-cumulative five-year rate reset preferred stock with a 4.8% annual dividend for the initial period.

High-grade supply looks set to fall short of syndicate forecasts for a second consecutive week. Issuers have priced more than $14 billion of bonds, including $6 billion of corporate notes, week to date.

Issues priced this week are trading about 2 bps tighter on average from issuance, according to a BofA Merrill Lynch research report released on Thursday.

Constellation Brands, Inc.’s $1.5 billion of fixed-rate senior notes were quoted about 3 bps to 4 bps better than issuance in the secondary market.

Amazon.com, Inc.’s $3.5 billion of 3.15% notes due Aug. 22, 2027 (Baa1/AA-/) have widened about 20 bps since closing flat on Monday at 65 bps bid, a source said.

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