High-grade primary activity resumes; Visa, McDonald’s firm; Charter Communications widens

By Aleesia Forni and Cristal Cody

New York, Jan. 5 – The investment-grade primary bond market saw a flurry of new issuance on Tuesday.

Issuers accessed the market following a quiet opening to the new year on Monday that saw no new deals price as weaker economic data out of China spurred fears of a global slowdown, sending stocks sharply lower.

Market sources noted that a number of potential issuers stood down on Monday due to the volatile backdrop.

A more stable tone at Tuesday’s open persuaded corporate names including Ford Motor Credit Co. LLC, Walt Disney Co. and Harley-Davidson Financial Services Inc. to price new offerings.

Entergy Arkansas Inc. attracted more than $2 billion of orders for its $325 million issue of first mortgage bonds.

Yankee and financial names also made a strong showing during the session, with KfW of Germany, Santander UK Group Holdings plc, Barclays plc and Citigroup Inc. pricing bonds.

Investment-grade bonds were mixed in secondary trading on Tuesday.

Visa Inc.’s senior notes (A1/A+) priced in December traded 1 bp to 2 bps tighter after softening at the start of the day.

Charter Communications Inc.’s bonds (Ba1/BBB-) widened 6 bps to 7 bps over the session.

McDonald’s Corp.’s 3.7% senior notes due 2026 firmed 3 bps on Tuesday.

Wells Fargo & Co.’s 2.55% senior holding company notes due 2020 were flat.

The Markit CDX North American Investment Grade 25 index closed mostly unchanged at a spread of 90 bps.

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