Light high-grade volume forecast; Charter, Penske new notes firm; funds inflows improve

By Cristal Cody

Tupelo, Miss., June 29 – High-grade primary action stayed quiet on Friday with desks thinning early ahead of the weekend and upcoming Independence Day holiday week.

Supply this week missed syndicate forecasts with more than $4 billion of investment-grade corporate bonds priced. Market sources had forecasted about $15 billion to $20 billion of volume with some predicting as little as $5 billion of new issuance for the week.

Even less is expected in the week ahead with an early market close on Tuesday and closed markets on Wednesday for the holiday.

An offering remains in the pipeline from Toyota Motor Credit Corp., which has held fixed-income investor calls over the week in the United States, Europe and Asia for three tranches of senior notes.

In the secondary market, new investment-grade bonds priced this week were mixed on Friday, a source said.

Charter Communications, Inc.’s $1.5 billion two-tranche offering of senior secured notes priced Thursday traded 4 basis points to 5 bps tighter.

Meanwhile, the 4.125% senior notes due Aug. 1, 2023 that Penske Truck Leasing Co., LP and PTL Finance Corp. sold on Tuesday were more than 2 bps better in the secondary market.

For the week ended June 27, Lipper US Fund Flows reported inflows of $1.54 billion for corporate investment-grade funds, up from $411 million of reported inflows in the prior week.

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