Deal volume thins; FedEx, Bank of America firm; Comcast mixed; high-grade inflows ‘robust’

By Cristal Cody

Tupelo, Miss., Feb. 2 – Investment-grade issuance stayed mostly quiet on Friday with one deal brought to market early in the session.

Municipality Finance plc (Aa1/AA+/) priced $100 million of floating-rate notes due 2021.

Looking ahead, about $25 billion of corporate deal volume is expected by market sources for the upcoming week.

In the secondary market on Friday, new issues priced over the week mostly tightened.

Bank and financial paper also traded modestly better on Friday, a source said.

FedEx Corp.’s notes (Baa2/BBB/) priced in a $1.5 billion two-part deal on Monday improved 3 basis points to 4 bps.

Bank of America Corp.’s $1.5 billion of floating-rate notes due Feb. 5, 2026 brought to market on Wednesday tightened 3 bps in secondary trading.

Comcast Corp.’s $3.2 billion of notes (A3/A-/A-) priced in three parts on Thursday were mixed.

Credit spreads softened on Friday. The Markit CDX North American Investment Grade 29 index eased 2 bps to a spread of 50 bps.

Elsewhere, inflows to U.S.-domiciled equity fund and ETFs totaled $16.94 billion for the week ended Wednesday, compared to the $14.9 billion inflow the prior week and the $15.1 billion average over the past three weeks, Yuri Seliger, an analyst with BofA Merrill Lynch, said in a note released on Friday.

“Inflows to bond funds and ETFs declined, on the other hand, to $4.4 [billion] from $5.71 [billion] on weaker flows for high yield, loans and munis,” Seliger said, citing data from EPFR Global and BofA Merrill Lynch Global Research. “Inflows to high grade remained robust at $4.82 [billion], up from $4.46 [billion] the week before.”

Inflows to short-term high grade declined to $69 million from $1.07 billion, while inflows outside of short term increased to $4.13 billion from $3.4 billion, according to the note.

“The increase in inflows was led by ETFs to $2.14 [billion] from $1.01 [billion] while inflows to funds declined to $2.68 [billion] from $3.45 [billion],” Seliger said.

FedEx improves

FedEx’s 3.4% notes due Feb. 15, 2028 improved to 69 bps bid, 67 bps offered in the secondary market, a source said.

The $500 million tranche of 3.4% 10-year notes priced on Monday at a spread of 72 bps over Treasuries.

The company’s $1 billion tranche of 4.05% notes due Feb. 15, 2048 tightened to 108 bps bid, 106 bps offered.

FedEx sold the 30-year notes at a Treasuries plus 112 bps spread.

The package and freight transportation company is based in Memphis.

Bank of America firms

Bank of America’s series M medium-term floating-rate senior notes due Feb. 5, 2026 (A3/A-/A) tightened to 74 bps bid, 72 bps offered in secondary trading, a source said.

Bank of America sold $1.5 billion of the notes on Wednesday at par to yield Libor plus 77 bps.

The financial services company is based in Charlotte, N.C.

Comcast mixed

Comcast’s 3.55% notes due May 1, 2028 traded on Friday at 79.5 bps bid, 77.5 bps offered, according to a market source.

The notes priced on Thursday in a $1 billion offering at a spread of Treasuries plus 80 bps.

Comcast’s 4% notes due March 1, 2048 softened to 108 bps bid, 106 bps offered in secondary trading.

The $1 billion tranche of 30-year notes priced with a spread of 107 bps over Treasuries.

Comcast is a media and technology company based in Philadelphia.

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