Morning Commentary: Investment-grade deal pipeline thin; Bank of New Zealand starts roadshow

By Cristal Cody

Tupelo, Miss., Feb. 12 – High-grade deal volume is expected to be dependent on market tone over the week after a correction in stocks and a light deal pipeline in the previous week kept issuers at bay.

Market sources said they expect about $15 billion to $20 billion of bond supply for the week.

Commonwealth Edison Co. was on deck early Monday with an offering of series 124 30-year mortgage bonds.

Deal action is expected to be light over the session as investors gauge market stability, a source said. Stocks continued to improve modestly at the start of the day.

The three-month Libor yield was up 1 basis point to 1.82% early Monday, a source said.

The Bank of New Zealand (A1/AA-/AA-) is expected to start a week-long deal roadshow on Monday, according to a market source. J.P. Morgan Securities LLC is the arranger.

Elsewhere, on Friday investment-grade secondary market volume totaled $17.92 billion, according to Trace.

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