Primary activity resumes with Cardinal Health, Union Pacific new issues; AT&T widens

By Aleesia Forni and Cristal Cody

Virginia Beach, June 16 – Cardinal Health Inc., Union Pacific Corp., International Bank for Reconstruction and Development (World Bank) and Bank Nederlandse Gemeenten NV entered the primary market on Tuesday as the Federal Reserve kicked off its two-day policy meeting.

Cardinal Health was in the market with a $1.5 billion offering of notes.

Union Pacific attracted more than $1.5 billion of orders for its $700 million two-part offering.

Meanwhile, World Bank sold a $3.5 billion issue of global notes, while Bank Nederlandse Gemeenten issued $1.5 billion of three-year notes.

Svensk Exportkredit AB priced a $500 million issue of five-year green bonds.

Also on Tuesday, Ipalco Enterprises Inc. sold a $405 million crossover issue of five-year senior secured notes.

The session also hosted new issues from PacifiCorp and Valley National Bancorp.

The busier session follows a quiet Monday primary in which only $720 million of paper hit the primary.

In total, roughly $9.1 billion of new investment-grade issuance has priced so far this week.

Sources were initially calling for around $25 billion of supply for the week, though volatile market conditions have caused that figure to be revised down to around $15 billion.

Investment-grade bonds traded mostly flat to weaker ahead of the conclusion of the Federal Reserve’s policy meeting on Wednesday.

AT&T Inc.’s (/BBB+/A-) notes traded 4 basis points to 6 bps wider over the day.

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