Strong pricing action forecast to continue; JPMorgan firms; American Express, Chevron tighten

By Cristal Cody

Tupelo, Miss., March 3 – The high-grade bond market stayed mostly quiet on Friday following more than $40 billion of supply over the week.

Issuance came in stronger than the $20 billion to $25 billion of volume forecast for the week.

Pricing action is expected to stay heavy in the upcoming week with about $30 billion to as much as $50 billion of supply from corporate and SSA issuers likely, a market source said.

Deal action is expected to be strong as issuers get in ahead of a possible rate hike later in March.

The Markit CDX North American Investment Grade index was mostly unchanged at a spread of 60 basis points.

JPMorgan Chase & Co.’s $1.75 billion of senior floating-rate notes due March 9, 2021 priced on Thursday firmed in secondary trading.

American Express Credit Corp.’s notes (A2/A-/A) priced on Tuesday tightened.

Chevron Corp.’s senior notes (Aa2/AA-/) brought to the primary market on Tuesday traded about 3 bps to 5 bps better.

JPMorgan firms

JPMorgan Chase’s floating-rate notes due March 9, 2021 firmed to 50.5 bps bid, 53.5 bps offered in secondary trading, a source said on Friday.

JPMorgan Chase priced $1.75 billion of the notes (A3/A-/A+) on Thursday at par to yield Libor plus 55 bps.

The financial services company is based in New York City.

American Express tightens

American Express Credit’s 2.2% notes due March 3, 2020 tightened to 64.5 bps bid, 62 bps offered, according to a market source.

The company priced $2 billion of the notes on Tuesday at a spread of Treasuries plus 72 bps.

American Express Credit’s 2.7% notes due March 3, 2022 firmed in secondary trading to 76 bps bid, 73 bps offered.

American Express sold $1.75 billion of the five-year notes on Tuesday at a Treasuries plus 82 bps spread.

The credit card services provider is based in New York City.

Chevron improves

Chevron’s 1.686% notes due March 3, 2019 traded better on Friday at 40 bps bid, 38 bps offered, according to a market source.

The company priced $550 million of the two-year notes on Tuesday at par to yield a spread of Treasuries plus 45 bps.

Chevron’s 2.895% notes due March 3, 2024 were seen during the session at 67 bps bid, 64 bps offered.

The company priced $1 billion of the notes on Tuesday at par to yield a spread of 70 bps over Treasuries.

The petroleum, chemical, mining, power and energy company is based in San Ramon, Calif.

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