Deutsche Bank, American Tower price deals; week’s supply tops $42 billion; Microsoft mixed

By Aleesia Forni and Cristal Cody

New York, Jan. 8 – The investment-grade bond market closed a turbulent week on Friday with eight issuers pricing $8.9 billion of bonds.

Issuers piled into the unusually active Friday session to take advantage of more stable market conditions following a solid jobs report.

The Labor Department reported that non-farm payrolls increased 292,000 in December, more than the 200,000 expected.

Deutsche Bank AG, American Tower Corp., Intesa Sanpaolo and Kroger Co. were among the names bringing new deals to the primary.

The flood of issuance caps what has been a highly volatility week for the market spurred by growing fears of a slowdown in China and falling oil prices.

Still, more than $42 billion of new investment-grade issuance came to market during the opening week of the calendar year, blowing away earlier predictions of a $25 billion to $30 billion week.

Credit spreads continued to widen on Friday.

The Markit CDX North American Investment Grade 25 index eased 3 basis points to close at a spread of 99 bps, 9 bps wider since the start of the week.

In the secondary market, bonds were mostly unchanged to softer.

Microsoft Corp.’s senior notes (Aaa/AAA/AA+) were mixed in late afternoon secondary trading.

Visa Inc.’s 3.15% notes due 2025 were unchanged as the session closed.

Whole Foods Market Inc.’s 5.2% senior notes due 2025 traded 2 bps weaker during the day.

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