High-grade primary quiets; thin pre-holiday supply eyed; SEB mixed

By Cristal Cody

Tupelo, Miss., Aug. 28 – Investment-grade market activity was quiet with no reported issuers offering bonds over Friday’s session.

Deal volume quieted on Thursday at the start of the Federal Reserve Bank of Kansas City’s two-day virtual economic policy symposium.

High-grade corporate supply totaled about $17 billion over the week, in line with the $15 billion to $20 billion of volume expected.

Sovereign, supranational and agency issuers also priced $10 billion of bonds this week.

Looking ahead to next week, little supply is expected in front of the Labor Day holiday in what may be the quietest session seen this summer, according to syndicate sources.

Anywhere from zero to up to about $5 billion of deal volume is anticipated for the week ahead.

In September, syndicate sources are forecasting about $110 billion to as much as $165 billion of supply during the month.

New issues priced over the week were mostly stronger in secondary trading, though some bonds had leaked wider by late in the week, sources report.

Skandinaviska Enskilda Banken AB’s $2 billion of senior notes (Aa2/A+/AA-) priced in three tranches on Tuesday were wrapped around issuance to about 1 basis point better going out on Friday.

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