Air Lease, Jersey Central Power brave volatile market; Duke Energy, BNY Mellon firm

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 11 – Air Lease Corp. and Jersey Central Power & Light Co. braved volatile market conditions on Tuesday, bringing a combined $750 million of new bond issuance to the high-grade primary market.

The slower session came on the heels of the surprise news overnight that China had reduced the value of its currency following weakening trade data.

Jersey Central Power sold a new $250 million long 10-year note at a 220 basis points spread over Treasuries after widening the deal’s spread from initial price thoughts.

In its shorter-dated new issue, Air Lease sold $550 million three-year notes around 10 bps tighter than talk.

Tuesday’s two new deals paired with Monday’s blowout primary session to push the week’s total supply to $14.75 billion.

In the secondary market, Duke Energy Progress Inc.’s $1.2 billion two-part offering of first mortgage bonds (Aa2/A/A+), which were brought to market on Monday, traded 3 bps better.

Bank of New York Mellon’s 2.6% notes due 2020 that priced on Monday traded about 2 bps better than issuance.

Barclays plc’s new 5.25% senior notes due 2045 traded about 1 bp wider than issuance, while its short-dated existing paper widened 5 bps over the trading session.

Credit spreads headed out weaker.

The Markit CDX North American Investment Grade index was about 1.5 bps wider late afternoon at a spread of 75 bps.

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