West Fraser, American Honda price amid volatility; Wal-Mart firms; Hewlett-Packard eases

By Cristal Cody and Aleesia Forni

Virginia Beach, Oct. 7 – West Fraser Timber Co. Ltd., American Honda Finance Corp., KfW and Wal-Mart Stores Inc. issued bonds during a weaker session for the high-grade market amid broader market volatility.

KfW sold the day’s largest offering, upsizing and pricing its $1.5 billion new issue at the tight end of price talk.

Also on Tuesday, American Honda priced $875 million of 18-month floating-rate notes.

Meanwhile, West Fraser sold $300 million of 10-year notes, and Wal-Mart stores sold a $500 million add-on.

The session also saw new deal announcements from the European Investment Bank and the Province of Quebec.

Activity in the investment-grade primary market has slowed significantly following a busy September that saw nearly $130 billion of bonds price.

“The wide swings in bond issuance activity in recent months are indicative of the increased volatility in the credit markets, the ebb and flow of investor sentiment related to geopolitical crises, and the elevated uncertainty over monetary policy in Europe and the U.S.,” according to a report published by Standard & Poor’s.

Hewlett-Packard Co.’s bonds remained wider on Tuesday after moving out 10 bps to 15 bps in trading on Monday, according to a trader.

The company announced on Monday that it plans to split into two publicly traded companies.

Wal-Mart’s 3.3% notes due 2024 tightened to 64 bps bid, 60 bps offered in the secondary market, a trader said.

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