Morning Commentary: Deal action quiets; American Water Works continues roadshow; AT&T active

By Cristal Cody

Tupelo, Miss., Aug. 4 – The high-grade bond market quieted on Friday with little activity seen over the morning following a busy week with deals from issuers that included Ford Motor Credit Co. LLC, General Motors Co. and Kinder Morgan, Inc.

American Water Works Co., Inc. (A3/A) is expected to continue the second day of a two-day fixed income investor roadshow on Friday.

J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the arrangers.

The publicly traded water and wastewater utility is based in Voorhees, N.J.

Secondary trading action has been strong over the week, according to Trace. On Thursday, $19.62 billion of investment-grade bonds were traded, compared to $19.89 billion on Wednesday, $17.62 billion on Tuesday and $17.72 billion on Monday.

AT&T Inc.’s new notes (Baa1/BBB+/A-) that priced a week ago in a $22.5 billion seven-tranche deal have traded heavily over the week, a market source said.

The company’s 3.9% notes due Aug. 14, 2027 were softer early Friday at 99.95 from 100.17 on Thursday.

The Dallas-based telecommunications company sold $5 billion of the notes on July 27 at 99.827 to yield 3.92% and a spread of 160 basis points over Treasuries.

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