Post-Labor Day market brings flood of issuers; CSX, Disney price

By Rebecca Melvin

New York, Sept. 3 – The investment-grade bond market on Tuesday saw its busiest day since September 2015 as a flood of issuers pulled the trigger on deals at the soonest possible moment after the Labor Day holiday, which traditionally marks a market reset following summer holidays.

There were as many as 21 deals across IG, including a few emerging markets IG deals, compared to 17 deals that came in a single session in September 2015, a New York-based market source said.

“I’m just coming up for air and catching my breath. It’s been a very busy day and broke a record in terms of the largest number of individual deals,” the source said.

Volume-wise, there was roughly $23 billion in issuance, but that wasn’t a record breaker.

The number of deals speaks to the low-rate environment that currently exists globally as investors are looking for safety and strong returns.

Walt Disney Co. was able to notch a fresh low in its pricing with a 2.75% coupon among its six tranches pricing on Tuesday. Final terms for the Walt Disney tranches were not seen by Prospect News’ deadline.

CSX Corp. also notched a fresh record with the lowest BBB coupon for 10- and 30-year paper.

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