High-grade supply slows amid blackouts; Everest Reinsurance in pipeline

By Cristal Cody

Tupelo, Miss., Oct. 2 – The investment-grade primary market stayed quiet over Friday’s session following a better-than-expected September unemployment rate and a jolt to equities over the announcement the U.S. president tested Covid-19-positive.

A bond deal is expected soon from Everest Reinsurance Holdings, Inc. (Baa1/A-/) after the company held fixed-income investor calls on Thursday for two tranches of registered senior notes due in 2030 and 2050, sources said.

Corporate and sovereign, supranational and agency issuers priced more than $18 billion of investment-grade notes over the week, compared to about $20 billion to $25 billion of volume forecast.

For the week ahead, syndicate sources are anticipating about $15 billion to $20 billion of supply with issuance expected to thin considerably due to earnings-related blackout periods.

Meanwhile, U.S. high-grade bond funds and ETFs slowed over the past week ended Wednesday, according to a BofA Securities, Inc. research note released Friday.

Investment-grade bond funds and ETFs reported inflows of $4.69 billion for the past week, down from $5.63 billion in the prior week and the lowest since April.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.