National Australia Bank, Fannie brave volatile market conditions; Barclays, Disney improve

By Aleesia Forni and Cristal Cody

New York, Jan. 6 – National Australia Bank joined Fannie Mae in the high-grade primary on Wednesday as another bout of market volatility kept most potential issuers on the sidelines.

The market’s overall tone was weaker during the session on tumbling oil prices, continued concerns over slowing growth spurred by negative data out of China and North Korea’s claim that it had successfully tested a hydrogen nuclear device.

This follows an onslaught of new issuance on Tuesday, with more than $20 billion of new paper pricing on the heels of an empty Monday primary.

“It’s not pretty,” one market source said of the market on Wednesday.

So far, this week has hosted around $27 billion of new issuance, already in line with what was predicted to be a $25 billion to $30 billion week for the market.

National Australia Bank garnered nearly $9 billion of orders for its new $3.5 billion issue of notes that priced on Wednesday in four tranches, a market source said. All tranches sold at the tightest side of price guidance.

In secondary trading, investment-grade bonds were mixed over the session.

New paper from Barclays plc traded 3 basis points better in the secondary market.

Walt Disney Co.’s 3% senior notes due 2026 sold on Tuesday traded about 1 bp tighter.

Ford Motor Credit Co. LLC’s 4.389% notes due 2026 edged 1 bp wider.

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