No issues price; light calendar ahead; Morgan Stanley firms; eBay widens; telecoms mixed

By Cristal Cody and Aleesia Forni

Virginia Beach, Aug. 15 – The investment-grade primary market was empty of new issuance during a slow Friday session.

The muted day capped off a front-loaded week of issuance that saw around $16 billion of new paper price. Around $14 billion of that total priced during Monday’s and Tuesday’s sessions.

The week’s total fell in line with what sources had predicted to be a $15 billion to $20 billion week.

In other news this week, Lipper reported inflows of $1.13 billion into corporate investment-grade funds for the week ended Aug. 13, up significantly from last week’s $139 million of inflows.

Another light calendar is expected for the week ahead, with one source forecasting “maybe $5 billion” of supply.

Investment-grade bonds traded mostly flat to softer in the secondary market on Friday, sources said.

Bank and financial paper was mixed during the session, according to a market source. Morgan Stanley’s 3.875% notes due 2024 improved about 4 basis points. Bank of America Corp.’s 4% notes due 2024 eased 3 bps in the secondary market.

In other trading, eBay Inc.’s 3.45% senior notes due 2024 brought in July widened 7 bps, according to a market source.

Apple Inc.’s 3.45% notes due 2024 traded nearly 10 bps wider than issuance.

In the telecom sector, AT&T Inc.’s 3.9% notes due 2024 headed out weaker, while Verizon Communications Inc.’s 4.15% senior notes due 2024 traded better over the day.

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