High-grade primary action resumes; Fannie Mae to price; Microsoft eases; Shire mostly flat

By Cristal Cody

Eureka Springs, Ark., Sept. 22 – High-grade issuers resumed preparing to price new bond deals on Thursday following the Federal Reserve’s decision to keep rates unchanged in the previous session.

Issuers including Air Liquide SA and First Midwest Bancorp, Inc. were expected to price new deals.

First Capital Realty Inc. was the lone high-grade Canadian issuer in the primary market on Thursday. The company priced a C$150 million add-on to its 3.604% 10-year series T senior debentures at 102.431 to yield 3.3%, or a spread of 217 basis points over the Government of Canada benchmark.

Looking ahead, new supply is expected from Fannie Mae, which plans to price 10-year Benchmark Notes.

Credit spreads ended the day better. The Markit CDX North American Investment Grade index firmed about 3 bps to close at a spread of 76 bps.

Microsoft Corp.’s senior notes (Aaa/AAA) that priced in August headed out about 5 bps wider in the secondary market on Thursday.

Shire Acquisitions Investments Ireland DAC’s senior notes (Baa3/BBB-) brought to market on Monday traded mostly flat to modestly better than issuance.

Fannie Mae plans to price new 10-year Benchmark Notes, according to a press release. The notes are due Sept. 24, 2026.

Citigroup Global Markets Inc., Nomura Securities International Inc. and TD Securities (USA) LLC are the lead managers.

The deal is expected to settle on Tuesday.

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