High-grade supply quiets after heavy volume; Entergy postpones deal

By Cristal Cody

Tupelo, Miss., March 18 – The investment-grade market stayed quiet on Wednesday as stocks sank and credit spreads widened over the session following more than $27 billion of bonds priced in the previous session.

Investment-grade credit spreads moved out nearly 24 basis points on the day.

The Markit CDX North American Investment Grade 33 index finished at a spread of 148.03 bps from 124.21 bps on Tuesday.

At the start of March, the index was at a 65.06 bps spread.

Stocks tanked Wednesday with the S&P 500 down 5.17% and the Dow Jones industrial average off 6.3% from coronavirus-related volatility after closing Tuesday better.

The New York Stock Exchange announced on Wednesday that it will close the equities and options trading floors and move to full electronic trading beginning with the market’s open on Monday.

U.S. stimulus measures including reports of cash payments to Americans helped quell risk-off demand and pushed Treasury yields higher with the benchmark 10-year note yield past 1% over the morning. The 10-year benchmark closed up 26.9 bps at 1.266%.

Entergy Corp. postponed its two-part registered offering of senior notes (Baa2/BBB/) scheduled for Tuesday, a source said. The deal had included five-year notes that were initially talked to price at the Treasuries plus 275 bps area and 10-year notes with price talk in the 287.5 bps area.

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