RBC, NY Life price amid volatility; secondary market spreads widen; NY Life, Northrop firm

By Aleesia Forni

Virginia Beach, Feb. 4 – Royal Bank of Canada and New York Life Global Funding sold new deals on Wednesday, with falling oil prices and volatility contributing to the souring of the market’s tone during the session.

RBC was able to upsize its issue of floating-rate notes to $1.75 billion due to demand, while New York Life came to market with an offering of five-year notes.

The session also saw Kommunalbanken AS price $500 million of green bonds, Landwirtschaftliche Rentenbank sell an add-on to its existing floaters due 2022 and International Bank for Reconstruction and Development (World Bank) issue $4 billion of seven-year global notes.

Caisse d'Amortissement de la Dette Sociale joined the forward calendar on Wednesday, announcing price talk for a planned offering of seven-year notes.

Wednesday’s new issue activity pushes the week’s total supply to more than $22 billion, closing in on what was predicted to be a $25 billion to $30 billion week.

In the secondary market, high-grade bond spreads continued to leak wider late during the session on Wednesday.

The Markit CDX North American Investment Grade index was 2 basis points wider at a spread of 67 bps.

NY Life’s bonds were quoted around 1 bp tighter in aftermarket trading, while the recently priced new deal from Northrop Grumman Corp. traded 2 bps better.

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