BHP sees surprising demand; BofA prices following strong earnings; Intel mixed; Apple soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Oct. 14 – BHP Billiton plc and Bank of America Corp. were among the issuers bringing $8.65 billion to the investment-grade primary market following an upswing in sentiment.

With most of the deals priced earlier during the week faring better in the secondary, one source noted that the market was primed and ready for Wednesday’s slew of new deals.

Natural resources company BHP Billiton’s long-awaited offering went over “surprisingly well” in the face of the current market backdrop and sliding commodity prices, one market source said, garnering an order book that was more than four times oversubscribed.

Other financial names pricing new deals on Wednesday included Oesterreichische Kontrollbank AG, Bank of Nova Scotia and Sumitomo Mitsui Banking Corp.

This week has seen $23 billion of new issuance enter the investment-grade primary market, with more than $16 billion of that total coming from the financial sector.

Meantime, DDR Corp. and National Retail Properties, Inc. were each in the primary with upsized new deals.

Investment-grade bonds were mixed in secondary trading on Wednesday.

Intel Corp.’s senior notes (A1/A+/ A+) traded flat to softer after the company reported lower third-quarter earnings late the previous day.

Apple Inc.’s bonds (Aa1/AA+/) headed out 4 basis points wider in the secondary market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.