Lloyds, AvalonBay, FHLB price notes; supply thins; Assurant holds investor deal calls

By Cristal Cody

Tupelo, Miss., March 15 – Reported deal action remained light in the high-grade bond market on Thursday for a third straight session after heavy volume at the start of the week.

Lloyds Banking Group plc priced $1.5 billion of 4.375% 10-year senior notes (A3/BBB+/A+) at a spread of 160 basis points over Treasuries.

AvalonBay Communities, Inc. sold $300 million of 30-year medium-term notes.

Also, the Federal Home Loan Bank System priced $3 billion of two-year Global Notes.

Elsewhere on Thursday, Assurant Inc. (Baa2/BBB+/) began holding fixed-income investor calls for a three-tranche bond offering, a source said. The investor calls are scheduled to continue on Friday.

The company plans to price five- and 10-year notes and one tranche of 30-year fixed-to-floating-rate subordinated notes.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and U.S. Bancorp Investments Inc. are the bookrunners.

High-grade supply has thinned following heavy volume on Monday when more than $14 billion of bonds priced. On Wednesday, Sprint Corp. and McDonald’s Corp. tapped the primary market.

The Markit CDX North American Investment Grade 29 index ended modestly tighter at a spread of 55 bps.

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