Credit spreads improve as supply wanes; JPMorgan firms; Eversource Energy notes tighten

By Cristal Cody

Tupelo, Miss., Dec. 12 – Investment-grade issuance looks wrapped up for the year with no reported issuers in the primary market on Wednesday.

Volume for the month was initially expected to reach about $25 billion to $30 billion, but syndicate sources now expect little, if any, other issuance this year with more than $5 billion of bonds priced month to date.

High-grade issuers sold $1.2 billion of bonds on Monday following more than $4 billion of supply last week.

The Markit CDX North American Investment Grade 31 index closed on Wednesday about 2 bps better at a spread of 78 bps.

High-grade bonds were mostly unchanged to modestly stronger in the secondary market.

JPMorgan Chase & Co.’s 4.452% fixed-to-floating rate notes due Dec. 5, 2029 traded about 1 bp tighter on the day.

Earlier, Eversource Energy’s $900 million of senior notes (Baa1/A/BBB+) that priced on Monday were quoted about 8 bps tighter in secondary trading, according to a market source.

The company’s 3.8% notes due Dec. 1, 2023, which priced in a $400 million tranche at 99.638 to yield 3.881%, or a spread of 117 bps over Treasuries, tightened to the 108 bps area.

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