Front-loaded high-grade supply eyed ahead of Fed meeting; Westpac flat; TD, Adobe firm

By Cristal Cody

Tupelo, Miss., Jan. 24 – The dollar-denominated investment-grade primary market stayed quiet over Friday’s session following about $19 billion of issuance over the week.

Supply is expected to remain steady in the week ahead with volume likely front-loaded ahead of the Federal Reserve’s two-day monetary policy meeting that ends Wednesday. About $20 billion to $25 billion of high-grade issuance is forecast, syndicate sources said.

In other market action expected in the upcoming week, Japan Finance Organization for Municipalities (A1/A+/) will start a roadshow on Monday for a dual currency bond deal.

The transaction is expected to include a Rule 144A and Regulation S offering of dollar-denominated green bonds and a debut offering of euro-denominated notes.

In the secondary market, bank and financial paper priced this week was mixed, sources said.

Westpac Banking Corp.’s $1.5 billion of 2.894% subordinated notes due Feb. 4, 2030 traded flat on the bid side.

Toronto-Dominion Bank’s $1 billion of floating-rate senior medium-term notes due Jan. 27, 2023 brought to the primary market on Wednesday tightened 3 bps.

Adobe Inc.’s $3.15 billion of notes (A2/A/) priced in four tranches in the week’s biggest deal tightened about 1 bp to 2 bps.

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