Weaker session sees Capital One, CDP Financial price; spreads soften; Goldman, Verizon up

By Cristal Cody and Aleesia Forni

Virginia Beach, July 21 – Capital One Bank NA and CDP Financial Inc. were among the issuers to bring a total of $4.55 million in new deals to Monday’s primary market.

Ongoing geopolitical tensions contributed to the market seeing a “weaker session overall” on Monday, a source said.

CDP Financial sold the largest trade of the day, pricing $2 billion of senior notes due 2024.

Meanwhile, Capital One priced a $1.25 billion offering of seven-year senior notes.

In other primary action, ConAgra Foods, Inc. brought an upsized offering of two-year floaters to market, while Liberty Mutual Group Inc. sold $750 million of 30-year bonds.

Following one of the slowest weeks the market has seen so far this year, with only $10.8 billion of issuance, sources are expecting around $15 billion of supply for this week.

Investment-grade bond spreads opened the session softer and headed out weaker, according to a market source.

The Markit CDX North American Investment Grade series 22 index eased 1 basis point to a spread of 60 bps.

Bank and financial paper traded mostly higher in price on Monday, a source said.

Goldman Sachs Group, Inc.’s 3.85% notes due 2024 climbed on Friday and held onto the gains over the session.

Verizon Communications Inc.’s 6.55% bonds due 2043 have rallied since the issue priced in September, according to a market source.

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