National Securities, BNY, Santander, ConEd, McKesson, UDR price; Kommunalbanken offers notes

By Cristal Cody

Tupelo, Miss., Nov. 30 – Investment-grade issuers priced $5.5 billion of bonds on Monday in the first full session after the Thanksgiving Day holiday.

Volume was led by a $1.75 billion two-part offering of senior notes from National Securities Clearing Corp. (Aaa/AA+/).

Also in the primary market, Banco Santander, SA (A2/A/A-) sold $1.5 billion of 10-year tier 2 subordinated debt securities.

Bank of New York Mellon Corp. priced $750 million of three-year senior medium-term notes (A1/A/AA-) in a deal upsized from $500 million.

Consolidated Edison, Inc. came by with $650 million of three-year debentures (Baa2/BBB+/BBB+) on Monday.

McKesson Corp. tapped the primary market with $500 million of five-year notes (Baa2/BBB+/BBB+).

Also, UDR, Inc. sold $350 million of guaranteed green medium-term notes due March 15, 2033 (Baa1/BBB+/) on Monday.

In other supply over the day, H&R Real Estate Investment Trust placed C$250 million of senior debentures due June 2, 2026 (DBRS: BBB (high)).

Looking ahead, Kommunalbanken Norway (Aaa/AAA/) plans to price a Rule 144A and Regulation S dollar-denominated offering of three-year notes on Tuesday.

About $15 billion to $20 billion of high-grade issuance is expected this week, according to syndicate sources.

Deal volume was thin last week with just one reported corporate issuer and four sovereign, supranational and agency issuers in the primary market, including Swedish Export Credit on Friday.

About $25 billion to $35 billion or more of investment-grade corporate bonds are forecast to price in December.

High-grade inflows rise

Inflows in investment-grade corporate funds for the past week ended Wednesday increased to $5.94 billion from $4.14 billion in the previous week and $3.47 billion in the week prior, according to Refinitive Lipper US Fund Flows.

Elsewhere in the high-grade space on Monday, credit spreads tightened nearly 2 basis points from before the holiday.

The Markit CDX North American Investment Grade 35 index ended the day at a spread of 50.6 bps.

The iShares iBoxx Investment Grade Corporate Bond ETF improved 0.35% to head out at $138.48.

The PIMCO Investment Grade Corporate Bond index edged up 0.15% to $117.11.

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