Truist in primary market; steady post-holiday bond supply eyed; inflows strong on Fed buys

By Cristal Cody

Tupelo, Miss., May 22 – High-grade deal volume stayed light on Friday ahead of the early market close in the quietest deal session seen since early March.

Truist Financial Corp. exercised a $75 million over-allotment option of its new 5.25% perpetual series O non-cumulative preferred stock (Baa2/BBB-/BBB) during the session.

Looking ahead to next week, volume is expected to remain strong but lighter with about $25 billion to $30 billion of issuance expected, syndicate sources said.

High-grade bond fund and ETF inflows have remained strong on the back of the Federal Reserve’s secondary market corporate credit facility purchase of U.S. corporate credit ETFs that began on Tuesday, according to a BofA Securities, Inc. research note released Friday.

U.S. investment-grade bond and ETF inflows, including for corporate bonds, Treasuries, agencies and mortgages, declined slightly to $7.6 billion for the past week ending Wednesday compared to $7.8 billion of inflows in the prior week.

© 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.