Strong high-grade supply eyed for week ahead; BofA notes firm; Verizon, BP notes ease

By Cristal Cody

Tupelo, Miss., Feb. 8 – The investment-grade market stayed quiet on Friday, bringing the week’s volume to more than $10 billion.

Corporate supply came in short of the average $15 billion to $20 billion of issuance forecasted for the week.

Investment-grade supply is expected to ramp up in the week ahead, a source said.

A possible multi-billion dollar-denominated and euro bond offering from Altria Group Inc. eyed for this week’s business after the company held fixed-income investor calls on Monday likely will come next week, a source said.

About $25 billion to $30 billion of deal volume is predicted for the week ahead, according to market sources.

Meanwhile, inflows to high-grade funds and ETFs were more than strong for the week ended Feb. 6.

New issues were mixed in secondary trading on Friday.

Bank of America Corp.’s $3 billion of 3.974% medium-term fixed-to-floating rate senior notes due Feb. 7, 2030 improved about 6 bps from where the notes priced on Monday.

Verizon Communications Inc.’s 3.875% green bonds due Feb. 8, 2029 priced Tuesday softened about 3 bps to 4 bps to trade wrapped around issuance.

BP Capital Markets America Inc.’s guaranteed senior notes (A1/A-/) brought to the market on Wednesday in new and reopened tranches widened about 2 bps to 3 bps.

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