Corporate supply thins; EIB prices five-year notes; Japan Bank on deck with two tranches

By Cristal Cody

Tupelo, Miss., Oct. 23 – High-grade primary action remained light on Tuesday as issuers are taking a wait-and-see approach due to market volatility.

Christus Health was the sole reported corporate issuer during the session with a $339.5 million 10-year bullet bond that priced in line with guidance.

In SSA supply, the European Investment Bank sold $3 billion of five-year global notes tighter than initial talk.

Coming up on Wednesday, Japan Bank for International Cooperation plans to price two tranches of guaranteed senior bonds registered with the Securities and Exchange Commission.

Price talk emerged over the session for the deal expected to include five- and 10-year notes.

Supply has been thin week to date. On Monday, Constellation Brands, Inc. priced a $2.15 billion four-part offering of senior notes and KeyCorp sold $500 million of seven-year senior medium-term notes.

Volume is expected to be on the lighter side this week with market sources calling for about $15 to $20 billion of high-grade supply. Deal volume also was thin last week with less than $20 billion of total corporate and SSA issuance.

The Markit CDX North American Investment Grade 31 index ended flat to modestly softer at a spread of 67 basis points.

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