High-grade supply thin; Sterling upsizes; corporate inflows heavy; Welltower, Charter improve

By Cristal Cody

Tupelo, Miss., Dec. 12 – Investment-grade bond supply is winding down for the year with just one deal reported in the primary market on Thursday.

Sterling Bancorp priced an upsized $275 million of 10-year registered fixed-to-floating-rate subordinated notes.

A possible bond offering also is being eyed from Reinsurance Group of America, Inc., which held fixed income investor calls on Monday and Tuesday, a market source said.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the arrangers.

Otherwise, little new issue supply is expected to hit the primary market for the rest of the year, market sources report.

Investment-grade issuers have priced more than $4.5 billion of bonds week to date.

In the secondary market, new issues were mixed but mostly tighter than issuance.

Steel Dynamics, Inc.’s 3.45% senior notes due April 15, 2030 (Baa3/BBB-/BBB) priced on Monday have improved 10 bps from issuance to the 155 bps area, a source said.

Welltower Inc.’s $500 million of 2.7% green senior notes due Feb. 15, 2027 (Baa1/BBB+/BBB+) priced on Monday were seen in the previous session 6 bps better than issuance, a market source said.

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