Enbridge Energy, Kommuninvest price; AT&T paper mixed; Verizon soft; Duke Energy tight

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 1 – Enbridge Energy Partners LP and Kommuninvest entered the investment-grade primary market on Thursday during a softer session for the market as primary activity fell short of expectations.

The session’s new issues pushed the week’s total supply to roughly $27 billion, so far falling just short of what was predicted to be around a $30 billion week.

Coming on the heels of Wednesday’s blowout $14.6 billion nine-part transaction from Hewlett-Packard Enterprise Co. that garnered around $30 billion of orders, sources had remarked on the potential for a solid showing of issuers to hit the primary market on Thursday.

However, following a sour performance of Hewlett-Packard’s bonds in the secondary, with tranches widening by more than 10 basis points, and continued volatile conditions, market sentiment was decidedly weaker.

“Thought today could be busier,” one source noted, referencing a number of deals in the current pipeline and the initial strong reception to Hewlett-Packard’s offering.

In secondary trading on Thursday, AT&T Inc.’s bonds (/BBB+/A-) were mixed, with the short end tighter.

Verizon Communications Inc.’s 3.5% notes due 2024 traded 5 bps wider over the day.

In other trading, Duke Energy Progress Inc.’s $1.2 billion first mortgage bonds (Aa2/A/A+) were flat to 1 bp tighter and remain stronger than issuance.

The Markit CDX North American Investment Grade 25 index eased 2 bps to a spread of 95 bps, the widest range of the year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.