NRW Bank taps floaters; FMS Wertmanagement eyes offering; spreads mostly flat

By Aleesia Forni

Virginia Beach, Aug. 26 – The investment-grade primary market showed some signs of life on Tuesday, following a muted Monday session.

NRW Bank came to the primary market with a $200 million tap of its existing floating-rate notes due Oct. 16, 2017.

The session also saw FMS Wertmanagement announce price talk for a planned offering of three-year global notes. The deal is expected to price on Wednesday.

With the summer slowdown in full swing, sources are expecting little primary activity for the remainder of the week.

New issuance should resume in September following the Labor Day holiday weekend.

In the secondary market, spreads were mostly flat overall on the day, sources said, with little market activity to speak of.

The Markit CDX North American Investment Grade series 22 index firmed 1 basis point on Tuesday to a spread of 55 bps.

Meanwhile, bank and financial paper was unchanged to tighter, a source said.

Bank of America Corp.’s 4% notes due 2024 (Baa2/A-/A) were quoted flat compared to Monday’s session.

Investment-grade bank and brokerage CDS prices were unchanged on Tuesday, according to a market source.

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