High-grade volume thins; ‘not a great market’ to price; Export Canada, Airbus in pipeline

By Cristal Cody

Tupelo, Miss., March 27 – U.S. investment-grade issuers stayed out of the primary bond market on Monday, according to informed sources.

One source said as many as 10 issuers stood down over the session, crediting the pullback in the market due to last week’s failure of a health-care replacement bill in Congress and renewed attention on tax reform.

“The Dow was down a hundred points, so it was not a great market for issuance,” a syndicate source said on Monday afternoon. “There could be supply [later in the week] if we see stability in the market.”

About $25 billion to $30 billion of deal volume was forecast by market participants for the week.

Coming up on Tuesday, Export Development Canada is expected to price $500 million of two-year notes.

Also on Tuesday, Airbus Group SE (A2/A+/A-) kicks off fixed income investor meetings with a Rule 144A/Regulation S dollar-denominated offering of senior notes expected to follow. Citigroup Global markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.

In other activity on Monday, Hewlett Packard Enterprise Co. announced that subsidiary Everett SpinCo., Inc. closed on a $1.5 billion Rule 144A and Regulation S private placement sale of senior notes.

The Markit CDX North American Investment Grade index eased about 1 basis point on Monday to a spread of 68 basis points.

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