NVR prices; SSA space active; Nordic Investment Bank, Kommunalbanken print; inflows heavy

By Cristal Cody

Tupelo, Miss., Sept. 3 – Investment-grade bond supply remained light on Thursday.

NVR, Inc. priced a $250 million add-on to its 3% senior notes due May 15, 2030 (Baa1/BBB+/BBB+) that were first sold in April in a $600 million offering.

The notes priced at a spread of Treasuries plus 137 basis points versus the April 30 print of Treasuries plus 240 bps.

NVR’s 3% notes improved to 134 bps bid in secondary trading, a source said.

In the sovereign, supranational and agency space, Nordic Investment Bank sold $1.5 billion of five-year global notes (Aaa/AAA/) on Thursday.

In addition, Kommunalbanken Norway (Aaa/AAA/) brought $1.5 billion of five-year notes to the primary market.

New issuance is expected soon from Johnson Controls International plc, which concluded two days of fixed income investor calls on Wednesday for dollar-denominated 10-year green senior notes (Baa2/BBB+/BBB) and a potential euro-denominated note.

Also, Suzano Austria GMBH is in the deal pipeline with a registered offering of dollar-denominated global notes due in 2031 (/BBB-/BBB-).

Meanwhile, Independent Bank Group, Inc. is holding fixed income investor calls this week for a possible offering of notes (Kroll: BBB+), according to a market source.

High-grade corporate deal volume totals more than $4 billion week to date.

Supply has been led by Mizuho Financial Group, Inc.’s $2 billion of senior notes (A1/A-/) that priced in three tranches on Tuesday.

In addition to the deals from Nordic Investment Bank and Kommunalbanken, SSA issuance this week has included European Stability Mechanism’s $3 billion of five-year senior notes and a $3.5 billion three-year issue from Freddie Mac, both priced on Wednesday.

Market action was expected to wane ahead of the Labor Day holiday weekend with only about $5 billion up to $15 billion of volume forecast.

Credit spreads soften

Elsewhere, high-grade corporate funds inflows soared to a record $10.73 billion over the past week ended Wednesday, according to Refinitive Lipper US Fund Flows.

Inflows totaled $6.03 billion in the previous week and $5.13 billion in the week prior.

The high-grade space was mixed as stocks sank with the S&P 500 down 3.51% and the Nasdaq off 4.96% on the day.

The Markit CDX North American Investment Grade 33 index eased nearly 4 bps to a spread of 65.83 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF shed 0.22% to close at 136.40.

The PIMCO Investment Grade Corporate Bond index edged up 0.05% to 116.06 on Thursday.

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