Investment-grade primary quiet; Verizon Communications tightens; Google eases; Shire mixed

By Cristal Cody

Eureka Springs, Ark., Sept. 21 – Investment-grade issuers took a break on Wednesday with no reported issuance and market attention focused on the monetary policy statements from the Bank of Japan and the Federal Reserve.

“We think we should see some tomorrow [Thursday] and possibly Friday, and definitely next week we will see some activity as well,” a syndicate source said.

About $15 billion to $20 billion of high-grade deal volume is expected next week, the source said.

The Federal Open Market Committee maintained the target range for the federal funds rate at 0.25% to 0.5% on Wednesday.

In the secondary market, Verizon Communications Inc.’s 2.625% notes due 2026 traded 3 basis points tighter at 140 bps bid, a market source said, and its 4.125% notes due 2046 tightened about 7 bps to 179 bps bid.

Google holding company Alphabet Inc.’s 1.998% notes due 2026 traded about 3 bps softer at 65 bps bid in the secondary market, a source said.

Shire Acquisitions Investments Ireland DAC’s 2.4% notes due 2021 traded at 118 bps bid, a source said early Wednesday. The notes priced in a $3.3 billion tranche on Monday at Treasuries plus 120 bps.

Shire’s 2.875% notes due 2023 traded about 1 bp softer at 136 bps bid, according to the market source. Shire sold $2.5 billion of the notes in Monday’s offering at 135 bps over Treasuries.

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