Capital One prices $2 billion; Westpac Banking sells notes; high-grade inflows decline

By Cristal Cody

Tupelo, Miss., Jan. 23 – Investment-grade supply slowed on Thursday with two reported deals in the primary market.

Capital One Bank (USA) NA priced $2 billion of fixed-to-floating-rate notes in two tranches.

Westpac Banking Corp. sold $1.5 billion of 10-year subordinated notes.

More than $17 billion of investment-grade bonds have priced week to date.

About $20 billion to $25 billion of issuance was expected for the short market week.

Investment-grade supply month to date totals more than $100 billion.

Meanwhile, corporate investment-grade fund inflows declined to $4.19 billion for the past week ended Wednesday from $6.62 billion in the previous week and from the record $8.19 billion of inflows in the prior week, according to Lipper US Fund Flows.

Net inflow year to date is more than $19 billion.

The Markit CDX North American Investment Grade 33 index eased nearly 1 basis point to close the day at a spread of 46 bps.

New issues priced this week have traded flat to modestly tighter, a market source said.

Adobe Inc.’s $3.15 billion of fixed-rate notes (A2/A/) brought to the market in four tranches on Wednesday improved about 1 bp to 3 bps.

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