Primary pauses; $30 billion week ahead expected; Exelon, FedEx, Ford Motor Credit tighten

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 9 – The investment-grade primary market took a pause to close the first full week of the new year on Friday, with players focused on the release of non-farm payrolls data.

The quiet session wrapped up a frantic week of issuance for the market, which saw more than $38 billion of paper price.

The primary market is expected to be “very busy” again during the week ahead. Sources are calling for around $30 billion of supply.

Investment-grade corporate bonds were mixed over the day, with new issues mostly better in secondary trading as the week closed, according to market sources.

The Markit CDX North American Investment Grade series 23 index eased 1 basis point to a spread of 69 bps.

Volume was “decent” at just over $10 billion during the session, a trader said.

Exelon Generation Co. LLC’s 2.95% senior notes due 2020 headed about 6 bps tighter than where the issue came on Thursday.

FedEx Corp.’s senior notes (Baa1/ BBB/) brought on Tuesday improved with a “pretty good market” seen in the offering, a trader said.

Ford Motor Credit Co. LLC’s notes (Baa3/BBB-/BBB-) priced in Tuesday’s session tightened more than 5 bps.

Arizona Public Service Co.’s 2.2% notes due 2020 sold on Wednesday were quoted 4 bps better.

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