High-grade primary market quiet early in week, swells mid-week on supply from banks

By Devika Patel

Knoxville, Tenn., Jan. 25 – The primary investment-grade bond market was initially quiet before bank and financial issuers finally emerged mid-week to lift total supply. The market quieted down by Friday, which saw no new deals pricing or announced.

On Tuesday, Royal Bank of Canada priced $600 million of senior floating-rate notes (A2/A/AA) and Liberty Property LP, a real estate investment trust, priced $350 million of 4.375% 10-year senior notes (Baa1/BBB/BBB).

For Wednesday, JPMorgan Chase & Co. (A2/A-/AA-) sold $2 billion of 3.96% eight-year fixed-to-floating rate notes and Munich-based German state-owned wind-down agency FMS Wertmanagement sold $2 billion of 2.75% five-year senior notes. Also, Fifth Third Bancorp priced $1.5 billion of 3.65% five-year senior notes.

Thursday was the busiest day of the week as Oesterreichische Kontrollbank AG, Bank of Montreal and CubeSmart, LP tapped the market.

Brookfield Asset Management Inc. reported that a subsidiary priced $1 billion of 4.85% notes (Baa2/A-/A) due 2029; and Regions Financial Corp. sold a $500 million add-on to its 3.8% notes due 2025, bringing the total outstanding to $1 billion.

Thursday also saw Capital One Financial Corp. sell $1.25 billion of 3.9% five-year senior notes (Baa1/BBB/A-) and Bank of Nova Scotia sell $415 million of two-year floating-rate senior notes (A2//AA-).

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