August ends with no high-grade bond pricings during session; Barclays firms; JPMorgan flat

By Aleesia Forni and Cristal Cody

Virginia Beach, Aug. 31 – Investment-grade issuers stayed on the sidelines on Monday amid weaker market conditions and continued volatility.

With no new deals pricing during the final session of August, the month’s total supply remained at $50.28 billion, well below the roughly $70 billion sources had predicted for the month.

This follows last month’s stellar $155.34 billion of new issuance and brings the year-to-date total to $959.7 billion, according to Prospect News data.

The remainder of the week is predicted to remain mostly quiet ahead of the extended Labor Day holiday weekend.

Investment-grade bonds were mixed in secondary trading on Monday, while credit spreads leaked wider.

Barclays plc’s 5.25% senior notes due 2045 improved from Friday.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 were unchanged.

Morgan Stanley’s 4% senior notes due 2025 were seen 2 basis points weaker in secondary trading.

The Markit CDX North American Investment Grade index eased about 2 bps to a spread of 82 bps on Monday.

Barclays’ 5.25% notes due 2045 headed out tighter at 230 bps bid, a market source said.

The notes were quoted earlier in the day 2 bps softer at 232 bps offered.

Barclays sold $1.5 billion of the bonds (Baa3/BBB/A) on Aug. 10 at a spread of Treasuries plus 235 bps.

© 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.