High-grade primary action quiet; light volume predicted for week ahead; energy bonds mixed

By Cristal Cody

Eureka Springs, Ark., June 17 – Investment-grade issuers took a break on Friday to cap off a light week of volume.

Market sources predict issuance to stay quiet in the week ahead with less than $10 billion of volume forecasted in front of the June 23 Brexit vote.

High-grade bonds were mixed in secondary trading over the day.

Consolidated Edison Co. of New York, Inc.’s 3.85% debentures due June 15, 2046 were quoted in the secondary market at 142 basis points bid, 138 bps offered, a source said.

The company sold $550 million of the debentures (A2/A-/A-) on Tuesday at a spread of 142 bps over Treasuries.

Westar Energy, Inc.’s 2.55% green first mortgage bonds due July 1, 2026 traded on Friday afternoon at 102 bps bid, 98.5 bps offered, according to a market source.

The company sold $350 million of the bonds (A2/A) on June 13 at 95 bps over Treasuries.

Dell, Inc.’s 6.02% notes due 2026 were seen about 6 bps weaker at 428 bps offered early on Friday, according to a market source.

The bonds were quoted on June 9 at 386 bps offered.

Dell sold $3.75 billion of the notes (Baa3/BBB-/BBB-) on May 17 at Treasuries plus 425 bps.

The Markit CDX North American Investment Grade index ended the day unchanged to modestly tighter at a spread of 83 bps.

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