High-grade primary action slows; Export Development Canada plans deal; Amazon.com flat

By Cristal Cody

Tupelo, Miss., Aug. 28 – The high-grade bond markets saw little activity on Monday.

No reported U.S. issuers were in the deal pipeline, while Export Development Canada marketed a Securities and Exchange Commission-registered Canadian dollar-denominated offering of bonds on Monday. The deal is expected to price during Tuesday’s session.

Activity is expected to be thin until after the upcoming Labor Day holiday.

“Dead quiet,” one source said.

The Markit CDX North American Investment Grade index ended modestly tighter a spread of 59.5 basis points.

In other activity on Monday, Amazon.com, Inc.’s $13.7 billion cash acquisition of Whole Foods Markets Inc. closed.

Amazon.com’s 3.15% notes due Aug. 22, 2027 traded flat on the day at 87 bps bid, according to a market source.

Amazon.com sold $3.5 billion of the notes (Baa1/AA-/) on Aug. 15 as part of a $16 billion seven-tranche deal at a spread of Treasuries plus 90 bps.

Kroger Co.’s senior notes (Baa1/BBB/BBB) were mixed in secondary trading on Monday.

Kroger’s 3.7% notes due 2027 traded about 1 bp softer at 150 bps bid, a market source said.

The company sold $600 million of the notes (Baa1/BBB/BBB) on July 17 at a Treasuries plus 140 bps spread.

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