Primary sees $12 billion issuance from Target, BMW, others; Pfizer, AT&T tighten modestly

By Aleesia Forni and Cristal Cody

New York, April 4 – A banner day for the high-grade bond market hosted more than $12 billion of new paper to open the week.

The primary saw new deals from Target Corp., Thermo Fisher Scientific Inc., Enterprise Products Operating LLC and Societe Generale.

Orders piled into BMW US Capital LLC’s $4 billion new deal, the largest of the session. The deal saw a final book of more than $14 billion.

Exelon Corp. was also in the market with a $1.8 billion three-tranche offering of notes. Essex Portfolio, LP sold an upsized $450 million 10-year issue.

The slew of deals comes on the heels of what had been a largely subdued primary during the month of March.

Sources expect around $30 billion of new issuance to enter the market this week.

Investment-grade corporate bonds traded mostly flat to modestly better on Monday.

Pfizer Inc.’s 3.4% senior notes due 2024 tightened 1 basis point during the session. The Treasury Department announced late Monday temporary and proposed corporate tax inversion regulations that could impact the company’s acquisition of Dublin-based Allergan plc.

AstraZeneca plc’s 3.375% senior notes due 2025 were flat on the day.

In other secondary trading, AT&T Inc.’s 4.125% notes due 2026 firmed 1 bp.

The Markit CDX North American Investment Grade index ended the day 1 bp softer at a spread of 76 bps.

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