Late summer supply thins; Swedish Export Credit prices $1 billion; KfW, Bank of Japan on tap

By Cristal Cody

Tupelo, Miss., Aug. 22 – Primary action in the investment-grade bond market slowed on Tuesday and is expected to stay light until after the Labor Day holiday.

Swedish Export Credit Corp. priced $1 billion of five-year notes.

In new Canadian high-grade supply, H&R Real Estate Investment Trust brought a C$125 million reopening of its 2.923% series L senior debentures due May 6, 2022 on Tuesday.

Also, Honda Canada Finance Inc. and La Caisse Centrale Desjardins du Quebec tapped the Canadian primary market, a source said. Final pricing details were not immediately available.

Looking ahead to Wednesday, KfW intends to price a benchmark sized offering of two-year senior notes that were initially talked to price in the mid-swaps minus 4 basis points area.

Also on Wednesday, the Development Bank of Japan plans to price a two-tranche benchmark sized offering of five- and 10-year senior notes. The five-year notes were initially talked to price in the mid-swaps plus 48 bps area, while the 10-year notes were talked to print in the mid-swaps plus 63 bps area.

Syndicate sources expect about $5 billion to $10 billion of supply for the week.

High-grade credit spreads improved over the session. The Markit CDX North American Investment Grade index tightened about 2 bps to close at a spread of 60 bps.

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