High-grade primary shut for holiday; thin supply eyed; Goldman firms; funds post outflows

By Cristal Cody

Tupelo, Miss., May 23 – The high-grade primary market stayed quiet on Thursday with little activity expected ahead of the long holiday weekend as market tone soured.

The bond markets will close early at 2 p.m. ET on Friday and reopen on Tuesday following the Memorial Day holiday.

Week to date, investment-grade companies have priced more than $15 billion of notes.

About $20 billion to $25 billion of issuance was expected by syndicate sources for the week.

Lipper US Fund Flows reported corporate investment-grade funds had outflows of $756 million for the week ended May 22, compared to inflows of $2.18 billion in the prior week and $3.3 billion of inflows in the previous week.

The Markit CDX North American Investment Grade 32 index closed the day about 2 basis points wider at a spread of 65 bps.

The week ahead is expected to see about $15 billion of issuance, depending on market tone surrounding trade concerns, according to syndicate sources.

New issues priced this week were mixed in the secondary market on Thursday afternoon, a source said.

Goldman Sachs Bank USA’s $1 billion of floating-rate senior notes due May 24, 2021 priced on Monday at the Secured Overnight Financing Rate traded on Thursday about 6 bps better than issuance.

© 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.