High-grade primary quiets; deal pace to ease; Western Midstream, Energy Transfer firm

By Cristal Cody

Tupelo, Miss., Jan. 10 – The high-grade bond primary market stayed quiet on Friday, capping off a week of heavy corporate volume of more than $60 billion.

Investment-grade issuers have priced about half of the $115 billion to $125 billion of volume forecast for the month.

Looking forward, supply is expected to lighten in the week ahead to about $30 billion to $35 billion, according to syndicate sources.

Meanwhile, inflows reached record levels for high-grade funds and ETFs in the past week ended Wednesday.

Lipper US Fund Flows reported on Thursday that corporate investment-grade fund inflows totaled $8.19 billion after outflows of $573 million in the prior week. The inflow is the largest investment-grade inflow on record, a source said.

Inflows to U.S. high-grade funds and ETFs also reached a record $8.82 billion inflow for the past week ended Wednesday, according to a BofA Securities, Inc. global research note released Friday.

In the secondary market, Western Midstream Operating, LP’s $3.5 billion of senior notes (Ba1/BBB-/BBB-) that priced in four tranches on Thursday improved about 3 basis points to 8 bps across the fixed- and floating-rate tranches.

Energy Transfer Operating LP’s $4 billion of senior notes (Baa3/BBB-/BBB-) that were sold in three tranches on Tuesday traded about 14 bps to 19 bps tighter than issuance.

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