Deal action slows; Freddie Mac, Aviation Capital, Stryker price; AT&T, Time Warner weaken

By Cristal Cody

Eureka Springs, Ark., Jan. 12 – Supply in the high-grade bond market stayed fairly light on Thursday with three offerings priced during the session.

“Pretty quiet,” one syndicate source said. “Wasn’t much today.”

Freddie Mac priced $3 billion of 1.5% three-year Reference Notes.

In corporate supply, Aviation Capital Group Corp. brought $1 billion of five-year senior notes to market.

Stryker Corp. sold $500 million of two-year notes.

The week has seen more than $30 billion of issuance following more than $50 billion of bonds priced in the first week of January.

Market activity is slowing in front of the long holiday weekend. The bond markets will be closed on Monday for the Martin Luther King holiday.

Some bond supply is expected following the holiday and before president-elect Donald Trump is inaugurated on Jan. 20.

“We’ll see issuance next week – Tuesday, Wednesday or Thursday are all days when people could come to the market, but things should be quiet tomorrow ahead of the long weekend,” a source said.

The Markit CDX North American Investment Grade index ended mostly unchanged at a spread of 66 basis points.

In the secondary market, bonds from AT&T Inc. and Time Warner Inc. were mostly unchanged on the day but softer from where the notes traded a week ago.

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