Issuance frenzy to continue in week ahead; Citigroup, Apple firm; Time Warner flat

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 12 – Another active week for the investment-grade market closed on Friday with no new deals pricing.

The onslaught of issuance in the primary market continued this week, with more than $28 billion of high-grade paper pricing, in line with expectations of $25 to $30 billion.

Two frenzied weeks to begin the month bring September’s total supply to more than $84 billion, on pace to pass the $100 billion mark next week.

Although sources throughout the week noted the market was showing clear signs of investor fatigue, the pace of issuance is expected to continue in the week ahead, with $25 billion of supply expected to price.

“We’ve got the [Federal Open Market Committee meeting], but it should still be a loaded week,” a source said early Friday.

Investment-grade credit spreads were seen ending the day wider in light trading, sources said.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 60 bps.

Bonds were mixed during the session.

Citigroup Inc.’s 3.75% notes due 2024 tightened more than 10 bps over the day, a source said.

Apple Inc.’s 3.45% notes due 2024 tightened 4 bps in the secondary market, according to a source.

Time Warner Inc.’s 3.55% senior notes due 2024 were unchanged on the day, a market source said.

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