MuniFin brings $1 billion deal; AT&T, Barclays paper unchanged; Kraft Heinz notes soften

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 1 – Finland’s Municipality Finance plc priced a $1 billion bond offering on Wednesday as primary activity continued its subdued pace.

Meantime, ADP Research Institute reported that companies added 190,000 workers to payrolls in August, below expectations of 200,000.

With the late-summer lull in full swing this week, sources expect issuers to come full force to the high-grade primary market following the extended Labor Day holiday weekend.

Even with the holiday falling later than usual this month, September is predicted to see roughly $100 billion to $110 billion of supply, sources say, with an eclectic mix of borrowers accessing the market.

However, players will be focused on the mid-month Federal Reserve policy meeting for a possible rate hike and note that the decision will play a role in the month’s ultimate supply total.

Investment-grade bonds headed out mostly flat to wider in secondary trading on Wednesday, while credit spreads improved.

AT&T Inc.’s 3.4% notes due 2025 were unchanged going out.

Kraft Heinz Co.’s 3.95% notes due 2025 traded 4 bps weaker over the day.

In the bank and financial sector, Barclays plc’s 5.25% senior notes due 2045 were flat.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 widened about 8 bps.

The Markit CDX North American Investment Grade index firmed 1 bp to a spread of 83 bps on Wednesday.

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