Morning Commentary: Investment-grade primary market quiet; light supply for week forecast

By Cristal Cody

Tupelo, Miss., June 25 – The high-grade primary market kicked the week off with little activity seen early Monday.

No reported issuers were marketing bond deals. Syndicate sources forecast a light volume week with only about $15 billion to $20 billion of supply expected. Some market participants anticipate even less supply.

“Now supply volumes are set to slow seasonally to a weekly range of just $5-15 [billion], due to the Independence Day holiday and 2Q earnings season related blackouts, before picking up with bank issuance the third week of July,” according to a BofA Merrill Lynch note released Monday.

More than $43 billion of high-grade bonds came to the primary market last week, including two merger and acquisition-related debt deals from Bayer AG and Walmart Inc. Most of the debt financing for deals set to close this summer is now completed, a source said.

In the meantime, political events and trade war fears remain in focus. Stocks were down across the board in the morning. Treasury yields also declined early Monday.

In other market activity, high-grade secondary trading volume totaled $13.88 billion on Friday, according to Trace.

© 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.