Supply resumes; Waste Management sells $2.5 billion notes; high-grade funds post outflows

By Cristal Cody

Tupelo, Miss., Nov. 5 – The investment-grade primary market stirred on Thursday following three consecutive sessions of zero deal volume as votes in the U.S. presidential election continue to be counted.

Waste Management, Inc. priced $2.5 billion of guaranteed fixed-rate senior notes (Baa1/A-/BBB+) in four tranches to strong demand and on the tight side of guidance, a source said.

Book orders totaled $19.8 billion with a final book demand of more than $14 billion.

The offering is the first corporate issue of the week.

In other supply, Hydro-Quebec priced C$500 million of 40-year debentures (Aa2/AA-/DBRS: AA) over the day.

Zero to about $10 billion of dollar-denominated investment-grade corporate volume was expected by syndicate sources this week.

Investment-grade corporate funds saw outflows of $1.58 billion for the week ended Wednesday, Refinitive Lipper US Fund Flows reported.

High-grade corporate funds had $3.42 billion of inflows in the previous week and $6.76 billion of inflows in the week prior.

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