Cades, Council of Europe, European Investment Bank, New York Life, Franklin price notes

By Cristal Cody

Tupelo, Miss., Oct. 14 – Sovereign, supranational and agency primary issuers made up the bulk of high-grade deal volume on Wednesday.

Caisse d'Amortissement de la Dette Sociale (Aa2//AA) priced $3 billion of 10-year social bonds in a 3C7 Rule 144A and Regulation S offering that saw orders of more than $4.7 billion.

The Council of Europe Development Bank (Aa1/AAA/AA+) brought $1 billion of three-year global notes to the primary market over the day, pricing the issue 2 basis points tighter than guidance.

The European Investment Bank (Aaa/AAA/AAA) sold $1 billion of seven-year global sustainability awareness bonds on Wednesday in the bank’s second dollar-denominated sustainability awareness issue.

Also, Freddie Mac priced $3 billion of three-year Reference Notes during the session.

Corporate supply thin

In corporate supply, New York Life Global Funding priced $800 million senior secured notes (Aaa/AA+/AAA) in two tranches, selling three-year fixed- and floating-rate notes.

Franklin Resources Inc. sold $750 million of 10-year senior notes (A2/A) with proceeds expected to be used for general corporate purposes, including redeeming, repaying or retiring long-term debt by new subsidiary Legg Mason Inc.

In other market action during the session, Blackstone/GSO Secured Lending Fund continued the second round of fixed-income investor calls for a Rule 144A and Regulation S offering of dollar-denominated senior notes (Baa3//BBB-).

Investment-grade corporate supply totals $4.9 billion week to date, while SSA volume totals $8 billion.

Issuance was light on Tuesday as the holiday-shortened market week kicked off with $3.35 billion of bonds sold from Toyota Motor Credit Corp. and Athene Global Funding.

Market participants expect about $15 billion to $20 billion of volume this week as focus centers on quarterly earnings results from the big U.S. banks.

Bank of America Corp., Goldman Sachs Group Inc. and Wells Fargo & Co. posted profit results on Wednesday, following earnings releases on Tuesday from JPMorgan Chase & Co. and Citigroup Inc. Morgan Stanley reports on Thursday.

Market tone was mixed over the day.

The Markit CDX North American Investment Grade 35 index eased about 0.6 bp to a spread of 55.64 bps on Wednesday.

The PIMCO Investment Grade Corporate Bond Index closed up 0.23% at 115.67, while the iShares iBoxx Investment Grade Corporate Bond ETF rose 0.10% to 135.71.

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