High-grade primary market silent ahead of payrolls report; Lloyds, JPMorgan paper firms

By Aleesia Forni and Cristal Cody

Virginia Beach, Sept. 3 – The investment-grade primary was at a standstill on Thursday, with no new deals coming to market ahead of Friday’s release of the all-important U.S. non-farm payrolls report.

Only $1 billion of new issuance has entered the primary market to open September, coming from a lone three-year deal priced by Municipality Finance plc on Wednesday.

With primary activity likely shut down for the week, players are gearing up for a busy new issue calendar during the shortened week ahead.

More than $30 billion of supply is expected to price following the extended Labor Day holiday weekend.

Market tone improved over the session and bank and financial paper headed out mostly better in the secondary market.

Lloyds Bank plc’s 2.7% senior notes due 2020 traded 6 bps better on Thursday.

JPMorgan Chase & Co.’s 3.9% senior holding company notes due 2025 firmed 4 bps.

Barclays plc’s 5.25% senior notes due 2045 were 4 bps tighter by late afternoon trading.

Bank of America Corp.’s 3.875% senior notes due 2025 were unchanged going out.

Morgan Stanley’s 4% senior notes due 2025 traded about 1 bp softer.

The Markit CDX North American Investment Grade index firmed 1 bp to a spread of 82 bps.

Lloyds tightens

Lloyds Bank’s 2.7% notes due 2020 tightened 6 bps to 95 bps bid in secondary trading on Thursday, a market source said.

Lloyds sold $1 billion of the notes (A1/A/A+) on Aug. 10 at a spread of 110 bps over Treasuries.

The retail bank is based in London.

JPMorgan improves

JPMorgan Chase’s 3.9% notes due 2025 traded 4 bps tighter during the session at 151 bps bid, according to a market source.

JPMorgan Chase sold $2.5 billion of the notes (A3/A/A+) on July 14 at Treasuries plus 155 bps.

The financial services company is based in New York City.

Barclays firms

Barclays’ 5.25% notes due 2045 headed out 4 bps better at 224 bps bid, a market source said.

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

The financial services company is based in London.

Bank of America flat

Bank of America’s 3.875% senior notes due 2025 were unchanged over the day at 186 bps bid, a market source said.

Bank of America sold $2.5 billion of the notes (Baa1/A-/A) on July 27 at 167 bps over Treasuries.

The financial services company based in Charlotte, N.C.

Morgan Stanley eases

Morgan Stanley’s 4% notes due 2025 eased about 1 bp in the secondary market to 159 bps bid, a source said.

Morgan Stanley sold $3 billion of the notes (A3/A-/A) on July 20 at Treasuries plus 165 bps.

The financial services company is based in New York City.

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