HSBC, Macquarie Bank join ERP, Total in primary market; Total Capital mixed in secondary

By Aleesia Forni and Cristal Cody

Virginia Beach, June 16 – The high-grade bond market’s week kicked off with issuers including HSBC USA Inc., Macquarie Bank, ERP Operating LP and Total Capital international pricing $7.3 billion of supply.

HSBC USA was in the market with a $2.25 billion offering, and Macquarie Bank priced $1.5 billion of notes in two tranches.

The details of Macquarie Bank’s sale were unavailable at press time.

Sources are expecting the pace of issuance to calm slightly compared to the $30 billion-plus week the high-grade primary saw last week.

Around $15 billion to $20 billion of new issuance is expected to price this week.

The deals that did price during Monday’s session were met with solid demand, sources said.

The order books for both HSBC’s new issue and Total’s deal were more than two times oversubscribed.

“Things looked good today,” a market source said.

Several of the new bonds priced late in the day, and no secondary markets were seen in some of the issues as the session closed, including ERP Operating’s two-part deal, according to a trader.

Total Capital’s two-part offering traded wrapped around issuance to about 1 bp wider, a trader said.

Investment-grade bonds headed out slightly weaker in thin trading, according to market sources.

The Markit CDX North American Investment Grade series 22 index was about ½ basis point wider at a spread of 60.3 bps.

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