Quiet primary hosts KfW, Standard Chartered, TD Bank; Boeing mostly flat; telecom bonds soft

By Aleesia Forni and Cristal Cody

Virginia Beach, March 26 – The relative lull in high-grade bond market activity continued on Thursday.

Still, the session hosted $8.75 billion of investment-grade paper, pushing the week’s supply to more than $26.5 billion and March’s new issuance total to more than $160 billion.

Financials dominated the market again during the session, with new deals priced by KfW, Standard Chartered plc and Toronto-Dominion Bank.

Standard Chartered’s new contingent convertible issue was the highlight of Thursday’s session, pricing the perpetual tier 2 offering at the tight end of talk.

More than $20 billion of orders poured into the bank’s new $2 billion deal.

In other primary news, KfW offered $5 billion of five-year global notes, while TD Bank sold a $1.75 billion covered bond, and both sold their respective new issues at the tight end of guidance.

Bonds were mixed in late afternoon secondary trading, sources said.

Boeing Co.’s senior notes (A2/A/A) were mostly unchanged.

Verizon Communications Inc.’s bonds (Baa1/BBB+/A-) were mixed in secondary trading.

AT&T Inc.’s 3.9% notes due 2024 traded about 1 basis point weaker.

Microsoft Corp.’s 2.7% notes due 2025 eased 2 bps over the day.

Investment-grade credit spreads were flat to modestly softer going out.

The Markit CDX North American Investment Grade series 23 index was unchanged at a spread of 64 bps.

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