Investment-grade primary market quiets ahead of holiday; Charter, Bayer notes tighten

By Cristal Cody

Tupelo, Miss., July 2 – The high-grade bond markets stayed mostly quiet on Monday with no reported deal volume.

With the bond markets set to close early on Tuesday and remain closed on Wednesday for the Independence Day holiday, little supply is expected this week.

Volume forecasts for the week range from zero to up to $5 billion. Syndicate sources forecast about $75 billion to $85 billion of new issuance in July.

BofA Merrill Lynch analysts expect about $70 billion to $75 billion of issuance in July.

An offering remains in the pipeline from Toyota Motor Credit Corp., which has held fixed-income investor calls last week in the United States, Europe and Asia for three tranches of senior notes.

The Markit CDX North American Investment Grade 30 index closed modestly softer at a spread of 68 basis points.

In the secondary market, Charter Communications, Inc.’s senior secured notes priced Thursday traded about 2 bps tighter on Monday.

Bayer AG’s new notes were quoted in secondary trading about 3 bps to 9 bps better from Friday’s levels.

Walmart Inc.’s notes priced as part of a $16 billion transaction on June 20 were flat to tighter on the day.

© 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.