High-grade supply thin; January deal pipeline eyed; UnitedHealth, Eversource tighten

By Cristal Cody

Tupelo, Miss., Dec. 14 – The investment-grade bond market stayed quiet over Friday’s session following more than $4 billion of issuance during the week.

A few more deals are possible before the year is over, but syndicate sources said issuance is mostly wrapped for the rest of the month.

More than $8 billion of supply has been brought to the primary market month to date.

The week ahead is forecast to see no issuance to up to $2 billion of supply, sources said.

Several deals have been delayed in December, which initially was expected to post as much as $30 billion of volume, hinting at a strong January calendar, according to market sources.

Volume in the month ahead is expected to total $100 billion to $125 billion, market sources said.

Meanwhile on Friday, UnitedHealth Group Inc.’s $3 billion four-tranche offering of senior notes (A3/A+/A-) that priced the previous day traded about 3 basis points to 8 bps tighter in the secondary market.

Eversource Energy’s $900 million of senior notes (Baa1/A/BBB+) that priced on Monday tightened about 10 bps to 14 bps during the week.

Credit spreads eased during the session. The Markit CDX North American Investment Grade 31 index closed about 2 bps softer at a spread of 79 bps.

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