Kommunalbanken, NWB Bank price; issuance to pick up following holiday weekend; spreads ease

By Aleesia Forni

Virginia Beach, Aug. 29 – A pair of foreign financials made their way to Friday’s primary market, closing out a sleepy week for investment-grade bonds.

Kommunalbanken AS sold a $300 million offering of seven-year floating-rate notes during the session in line with talk.

Meanwhile, Nederlandse Waterschapsbank NV came to market with a $500 million issue of 1.75% five-year notes.

With the late-August lull in full swing, the high-grade primary saw $6.75 billion price during the week.

Sources are expecting market activity to resume following the Labor Day holiday-extended weekend, with around $20 billion of supply forecasted for the shortened week.

Meanwhile, Lipper reported inflows of $922.3 million into corporate investment-grade funds for the week ended Aug. 27, up slightly from last week’s $1.02 billion of inflows.

The year-to-date total now tops $51 billion.

In secondary market action, high-grade bond spreads traded better on Friday, while Bank of America Corp.’s bonds eased during the session.

The Markit CDX North American Investment Grade series 22 index was flat at a spread of 57 basis points.

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