No issues price; light calendar ahead; Morgan Stanley firms; eBay, Apple widen; telecoms mixed

By Cristal Cody and Aleesia Forni

Virginia Beach, Aug. 15 – The investment-grade primary market was empty of new issuance during a slow Friday session.

The muted day capped off a front-loaded week of issuance that saw around $16 billion of new paper price. Around $14 billion of that total priced during Monday’s and Tuesday’s sessions.

The week’s total fell in line with what sources had predicted to be a $15 billion to $20 billion week.

In other news this week, Lipper reported inflows of $1.13 billion into corporate investment-grade funds for the week ended Aug. 13, up significantly from last week’s $139 million of inflows.

Another light calendar is expected for the week ahead, with one source forecasting “maybe $5 billion” of supply.

Investment-grade bonds traded mostly flat to softer in the secondary market on Friday, sources said.

The Markit CDX North American Investment Grade series 22 index was unchanged at a spread of 59 basis points.

Bank and financial paper was mixed during the session, according to a market source. Morgan Stanley’s 3.875% notes due 2024 improved about 4 bps. Bank of America Corp.’s 4% notes due 2024 eased 3 bps in the secondary market.

In other trading, eBay Inc.’s 3.45% senior notes due 2024 brought in July widened 7 bps, according to a market source.

Apple Inc.’s 3.45% notes due 2024 traded nearly 10 bps wider than issuance.

In the telecom sector, AT&T Inc.’s 3.9% notes due 2024 headed out weaker, while Verizon Communications Inc.’s 4.15% senior notes due 2024 traded better over the day.

Morgan Stanley firms

Morgan Stanley’s 3.875% notes due 2024 (Baa2/A-/A-) tightened about 4 bps to 125 bps offered, according to a market source.

Morgan Stanley sold $3 billion of the notes at a spread of Treasuries plus 130 bps on April 23.

The financial services company is based in New York City.

Bank of American eases

Bank of America’s 4% notes due 2024 (Baa2/A-/A) were quoted at 133 bps offered, wider than where the notes traded at 130 bps offered in Thursday’s session, a market source said.

The issue priced in a $2.75 billion offering on March 27 at Treasuries plus 137 bps.

The financial services company is based in Charlotte, N.C.

eBay widens

eBay’s 3.45% notes due 2024 (A2/A/A) widened 7 bps on Friday to 110 bps offered, a market source said.

The company sold $750 million of the notes at Treasuries plus 100 bps on July 23.

The online commerce and payments platform company is based in San Jose, Calif.

Apple trades wider

Apple’s 3.45% notes due 2024 (Aa1/AA+/) traded about 3 bps softer on the day in the 86 bps area, a market source said.

The company sold $2.5 billion of the notes at a spread of Treasuries plus 77 bps on April 29.

Apple is a computer and mobile communications device company based in Cupertino, Calif.

AT&T softens

AT&T’s 3.9% notes due 2024 (A3/A-/A) eased 4 bps to 102 bps offered in the secondary market, a source said.

The notes tightened 5 bps in the previous session.

AT&T sold $1 billion of the 10-year notes on March 5 at Treasuries plus 125 bps.

The telecommunications company is based in Dallas.

Verizon improves

Verizon’s 4.15% notes due 2024 (Baa1/BBB+/A-) traded 4 bps better on the day at 115 bps offered, according to a market source.

Verizon sold $1.25 billion of the 10-year notes on March 10 at 140 bps plus Treasuries.

The telecommunications company is based in New York City.

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